Exam 6: Production, Income, and Employment

In 2008,Computers,Inc.produced personal computers worth $20 million.If $16 million worth were sold and $4 million worth remained unsold at year end and were added to inventories,how much did Computers,Inc.contribute to GDP in 2008?

If a firm bakes cookies and sells them for $1,000 while spending $100 on sugar,$150 on chocolate,$50 on other supplies,$300 on wages and $400 on rent,what is its value added?

During recessions,GDP falls and unemployment increases.Why might the actual output produced not fall as much as officially measured GDP during recessions?

Changes in business inventories are part of private investment spending.

Which group of people would be characterized as unemployed?

Which of the following would be classified as private investment spending?

All else equal,what is likely to happen to the unemployment rate during a recession?

Suppose GDP for 2009 was $1,500,wages and salaries were $800,rent payments were $200,consumption was $1000,and interest payments were $200.What must the value of profits have been?

Which of the following would not be included in the consumption component of GDP?

The Bureau of Labor Statistics releases its employment report

As of 2008,approximately what fraction of U.S.GDP does government purchases now represent?

Individuals who would like a full-time job but are working only part-time are known as

This year,Tom sold his 1998 minivan to Honest John's Used Car Emporium for $5,000.Honest John then sold the van to Bob for $7,000.How much would be recorded in GDP this year from these transactions?

Which of the following people would be considered employed in the Census Bureau's Household Survey?

When a recession begins and ends is determined by a committee within the

Goodyear produces tires for automobiles,50,000 in all.Suppose 40,000 go on new cars and are sold as part of each car,while the other 10,000 are produced as replacement tires and are sold individually.How many tires would be counted in current GDP?

The costs of unemployment is (are)

If imports increased by $100 million while GDP remained the same,which of the following could have occurred,all else being the same?

The approach to calculating GDP that measures the contribution of each firm to GDP is referred to as the

The most volatile component of GDP is