Econ Final Exam chapter #14

when measuring GDP by income approach, wages income includes

I- health care insurance paid for firms employees ii. social security contribution made by firm iii. wages paid during a workers vacation time

using the information in the table above, what does GDP equal?

$ 380 million

the table gives data for a nation. what is the amount of country GDP?

$ 6,200 billion

the table has information about an economy, using this information, GDP is equals

$ 7,800 billion

the base year is 2011. a country only produces Blu-ray players. the price of a Blu-ray player in 2011 was $100. the price of a Blu-ray player was $90 in 2012. was 10,500 units, nominal GDP in 2012 equals

$ 945,000

the following table report transaction that occured in whoville.

$120

One bag of coffee beans is sold for $7 to a cafe that uses it to brew coffee which it sells to customers for a total of $15. A second bag of coffee is sold directly to Joan for $7, who uses it to brew coffee for her family every morning. What is the contribution to GDP from the purchases of coffee beans and coffee?

$22

during last year, a country produced 20,000 pizza and 10,000 hamburger and nothing else. the pizzas sold for $10.00 each and the hamburger $3.00 each. Nominal GDP was

$230,000

Last year in Candamica, consumption expenditure was $20 billion, interest, rent, and profit were $2.5 billion, government expenditure on goods and services was $7 billion, net exports of goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was

$34 billion

last year in a nation to the south, net domestic product at factor cost equaled $3,300 billion. indirect taxes minus subsidies equaled $200 billion, depreciation equaled $800 billion, the statistical discrepancy equaled zero, and net operating surplus equaled $150 billion. the country's GDP was

$4,300 billion

the table above gives the production and prices for a small nation that produces only bread and soda. the base year is 2009. what is the nominal GDP in 2009?

$450

assume the small country produces only green peppers and red peppers. last year it produced 100 green peppers and 50 red peppers and sold them at price of $ 2 per green peppers and $3 per red peppers. this year it produced 150green peppers and 60 red peppers and sold $2 per green, $4 per red. what is real GDP this year if the base year is last year?

$480

even though it is not a perfect measure, Economists can use real GDP to

B/ All above

consumption goods and service include

Washing machine and ticket to football games

gross domestic product equals

Y=C+I+G+Nx

Government expenditure on goods and services include

all above

in a circular flow diagram

all statement are correct

undistributed profits___________ counted as part of GDP because________.

are; they are considered income paid to house hold and loaned back to firms.

in comparing the magnitudes of the components of GDP according to the expenditure approach, we see that in U.S

Investment is less than government expenditure on good and service.

which of the following is classed as intermediate good?

McDonald's purchase of pickles

Real GDP can increase if the

Quantities of good and services production increases

Although imperfect, which of the following is used as a measure of the standard of living?

Real GDP + Population

when the value of nominal GDP increases from one year to the next, we know that one or two things must have happened during that time:

the nation produced more goods and services and/or price rose for good and services

Because of the circular flows of expenditure and income in the economy, total ________ equals total ________ equals total ________.

expenditure; income; value of product

Gross domestic product is the market value of all __________produced within a country in a given period

final good and service

the expenditure approach values______ and income approach values_________.

good and service at market price; good and service at factor prices

which adjustment must be made to convert net domestic product to GDP?

i. Add indirect taxes ii. subtract subsides iii. Add depreciation

which of the following is directly included in the U.S GDP for 2013?

i. a 2013 Cadillac Escalade produced and sold as a new car in the United States in 2013.

which of the following is included as investment in GDP?

i. car produced during the year but unsold at the end of the year ii. new capital equipment produced and purchased during the year.

which of the following is included in U.S GDP?

i. the rental value of of homes owned by U.S citizens ii. tickets sold by u2 for concert tickets held in the United States

in the United States, between 1961 and 2011, there has been

ii. an increase in the standard of living based on real GDP per person

which of the following are included in interest income?

ii. income paid to household for loans they make iii. payment made by household for their borrowing

which of the following is classified as a final good or service?

iii. your purchase of online access to the Wall Street journal

the category of "rent" in the income approach to GDP?

include the money paid to use land and other rented inputs

in 1961, real GDP totaled $575 billion and in 2011 it totaled $ 1,255 billion. between 1961 and 2011, the population increased from 50 million to 10 million. between 1961 and 2011, the standard of living based on real GDP per person

increased from $11,500 to $12,550

when an American college student in Davis California spent $200 on a pair of Louis Vuitton jeans, us consumption_______, U.S net exports_______, and U.S GDP________.

increases by $200; decreases by $200; does not change

Gross Domestic product measures

the market value of final goods and service produced in a given year within the country

Wobet is a small country that produces only steak and potatoes. Steaks have a price of $10 each and potatoes have a price of $1 each. Suppose that Wobet produces 10 steaks and 20 potatoes in 2010. Using ________, Wobet has GDP equal to ________.

market value; $120

which of the following is not included in the income approach to calculating GDP?

net exports of good and services

which of the statement is correct?

nominal and real GDP can change either in the same direction or the opposite direction.

which of the following is not directly included in U.S GDP?

popcorn purchased by a movie theater chain in Georgia

which of the following is not included in the U.S GDP in 2010?

the market value of the jet brought by delta to use for its flight in 2010

Kelly's Surf Shop orders 5,000 new surf boards at the beginning of the year but only sells 4,500 by the end of the year. How are the 500 unsold surfboards accounted for in Gross Domestic Product?

they will be included in the inventory investment category of GDP.

the circular flow shows that GDP measures

total income and total change

to calculate GDP it is necessary to

use the market price to place a dollar value on each good produced.

which of the following would be included in German's GNP?

A and C are correct/ anything owned by German