Exam 7: Ataking the Nations Economic Pulse

A business spends $10 million on new capital equipment,and during the same year,$7 million of its existing capital wears out.Which of the following is correct?

A firm purchases $400,000 worth of raw materials and pays wages and salaries of $300,000 and dividends of $100,000.If the firm sells its output for $1 million,the firm's value added to GDP is

Which of the following would be counted in the calculation of GDP?

You buy one hundred shares of IBM stock at $100 per share and pay $250 commission.How much will this transaction add to GDP?

Suppose,in dollar terms,nominal GDP increased approximately 4 percent during a given year,and real GDP decreased 1 percent.Which of the following best explains these events?

Which of the following would increase U.S.GDP?

A professor of economics gets a $100 a month raise.She figures that even with her new monthly salary she will be unable to buy as many goods and services as she could 12 months ago.

Suppose the consumer price index (CPI)stands at 250 this year.If the inflation rate is 10 percent,then next year's CPI will equal

Between 1991 and 2008,the federal minimum wage increased from $4.25 per hour to $6.55 per hour,while the CPI increased from 136.2 to 215.3.We can conclude from this that

In recent years,people have benefited from greater amounts of leisure time.This trend

In computing the consumer price index,a base year is chosen.Which of the following statements about the base year is correct?

Which of the following would not affect this year's GDP?

What basket of goods is used to construct the CPI?

Real GDP refers to nominal GDP

Suppose that the consumer price index (CPI)was 160 in 2010 and 166 in 2011,inflation during 2011 was

If the real GDP equals $100 billion this year and nominal GDP is $200 billion,the price level since the base year has increased

Which one of the following would count as investment in the national income accounts?

The Department of Commerce sums the payments made to resources to arrive at GDP in the form of wages,self-employment income,rents,interest,profits,indirect taxes,and depreciation.This method of deriving GDP is called the

From the producer's viewpoint,GDP is best thought of as an indicator of the

Use the table below to choose the correct answer. Table 7-11 -Refer to Table 7-11.Measured in 2000 prices,indicate the increase in real GDP between 2000 and 2003.