Exam 24: Measuring a Nations Income

Suppose an economy produces two products: meat pies and hamburgers.In 2011, 20 meat pies are sold at $5 each, and eight hamburgers are sold at $50 each.In 2010, the base year, the price of meat pies was $10 each, and the price of kebabs was $75 each.Therefore:

GDP includes the value of final goods, and not intermediate goods, because:

Suppose GDP consists of wheat and rice.In 2011, 200 kg of wheat are sold at $4 per kg, and 100 kg of rice are sold at $2 per kg.If in 2012, the base year, the price of wheat was $1 per kg and the price of rice was $2 per kg, then for year 2011:

Since black market and non-market measures are excluded from measures of GDP, the GDP measure tends to:

How can GDP increase if production of goods and services is constant?

Which of the following accounts for the largest portion of GDP?

If the GDP deflator is 200 and real GDP is $40 billion, then nominal GDP is:

If there is inflation

The four components of GDP are:

Out of the following list, choose the item that would be included in the expenditure approach to calculating GDP:

Transfer payments are included under