Exam 4: Measuring Gdp and Economic Growth

Explain how our economic welfare depends upon our level of real GDP per person but there might not be a one-to-one relationship between economic welfare and real GDP per person. Give examples of things that can effect one but not the other.

Which of the following best represents an indirect tax?

According to the BEA, in the second quarter of 2012 personal consumption expenditures grew by 1.7 percent, gross private domestic investment grew by 3.0 percent, government expenditure on goods and services decreased by -0.9 percent, imports grew by 2.9%, and exports grew by 6.0%. Given these data, it is most likely that

What are the categories of total expenditure?

The chain-weighted output index method

GDP can be computed as the sum of

The circular flow diagram indicates that

-Using the above figure, during which of the following periods does the price of crude oil shows an upward trend?

Which of the following statements about the comparison between GDP in China and in the United States is CORRECT?

When IBM, an American firm, produces computer chips in another country, this production is not included in U.S. GDP because the production did not take place in the United States.

Potential GDP is the

Which of the following expenditures associated with the production of a new high-performance SUV will be directly included in GDP?

A trend shows

The chain-weighted output index method of calculating real GDP compares

Gross private domestic investment is a component of which approach to measuring GDP?

Which of the following relationships is CORRECT?

The circular flow shows that the household sector earns its income by

Is it possible for nominal GDP to increase while real GDP does not change?

If imports are $100 million less than exports, government expenditures are $500 million, consumer expenditures are $1 billion, and gross investment spending is $500 million, then GDP is

Real GDP can be criticized as a measure of economic welfare because it