Econ 202 HW 3

Between 1993 and 2003, Guatemala experienced real GDP growth of about 3.6% a year. Over that same period, population grew at 2.8% a year, so real GDP per capita in Guatemala grew at: A. 0.8% a year. B. 2.8% a year. C. 3.2% a year. D. 6.4% a year.

A

(Table: q5) Suppose an economy produces only the three final goods shown in the table. The table gives information on the quantities produced and the prices of goods sold in 2008 and 2009. What is the growth rate of real GDP in 2009 if 2009 prices are used in the calculation of real GDP? A. 1.00% B. -2.94% C. -1.97% D. -3.71%

a

In 2010, real GDP was $13.2 trillion and nominal GDP was $14.6 trillion. What was the GDP deflator for that year? A. 110.6 B. 90.4 C. 192.7 D. 140

a

The factor income approach to calculating GDP states that GDP is equal to: A. wages + rent + interest + profit. B. investment + wages + rent + profit. C. consumption + investment + government spending + net exports. D. investment + profit.

a

Which of the following are underground goods or services that would NOT be counted in GDP? A. legal sales of medical marijuana in California B. strip clubs on Bourbon Street in New Orleans C. massages given in a resort spa D. prostitution activities in Atlanta

d

Gross domestic product (GDP) is the market value of: A. both intermediate and final goods and services produced within a country in a year. B. all final goods and services produced within a country in a year. C. both intermediate and final goods, but not services produced within a country in a year. D. all final goods, but not services produced within a country in a year.

b

If GDP was $10 billion in 2010 and $11 billion in 2011 and the population grew 5% between 2010 and 2011, the growth rate of GDP per capita between 2010 and 2011 was: A. -5%. B. 5%. C. 10%. D. -10%.

b

You sell your old bedroom set to your roommate for $1,800 and buy new custom-built furniture for $6,000. How much is added to GDP? A. $1,800 B. $6,000 C. $7,800 D. $4,200

b

Since 1950, the portion of U.S. GDP created by services has: A. increased slightly. B. fallen by a half. C. more than doubled. D. remained relatively constant.

c

What data are needed to calculate GDP? Selected Answer: A. only the quantities of goods and services produced B. only the costs of producing goods and services C. both quantities and prices of goods and services produced D. only the prices of goods and services produced

c

When people consume more leisure: A. the nation's GDP will not be affected. B. the nation's GDP will increase as a result of the value of leisure. C. the nation's GDP will decrease as a result of fewer hours worked. D. the hours in the workweek will increase.

c

(Table: Wheat and Corn) Consider a country that produces only wheat and corn. Based on the data in the table, the growth rate of real GDP from 2007 to 2008 (in 2005 dollars) is: A. 25.2%. B. 27%. C. 15.7%. D. 8.3%.

d

(Table: q2) Suppose an economy produces only the three final goods shown in the table. The table gives information on the quantities produced and the prices of goods sold in 2008 and 2009. What is the nominal GDP in 2008? A. $26,260 B. $25,260 C. $20,134 D. $21,134

d

(Table: q8) Consider a country that produces only wheat and corn. Based on the data in the table, the country's real GDP for year 2008 (in 2005 dollars) is: A. $111,360 million. B. $141,640 million. C. $128,800 million. D. $139,440 million.

d

If 2009 prices are used in the calculation of real GDP and inflation occurs between 2009 and 2010, then nominal GDP will be ____ real GDP in 2010. A. equal to B. unrelated to C. less than D. greater than

d