Exam 13: Gdp: Measuring Total Production, income and Economic Growth

If a book,film,or piece of software was created today,for how long would Australian copyright law guarantee exclusive legal rights to the creator to use the creation?

Which of the following is not one of the four main policy concerns of Australian macroeconomic policy?

Why do individuals and firms sometimes conceal the buying and selling of goods and services from the official measurement of GDP,and what proportion of GDP is this estimated to comprise in Australia? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Define each of the three methods of calculating GDP used by the Australian Bureau of Statistics. _____________________________________________________________________________________________ _____________________________________________________________________________________________

'Labour productivity' increases when capital stock per person falls,as there is a trade-off between capital and labour.

In periods when prices are falling on average,

The 'underground economy' refers to the:

The 'underground economy' can be described as

Use production functions from the economic growth model to explain why America grew at a much faster rate than the Soviet Union in the latter half of the 20th century. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Suppose you are a highly regarded international economic advisor.You have been asked to assess the possibilities of growth in an African country.It is a country abundant in labour and some natural resources.The capital to labour ratio is low.It has a free market economy.You have found that this country does not have a very strong and healthy banking system; however,the political system is stable and the government does a good job protecting property rights.Assess this country's prospects for growth.Recommend two things that would enhance the country's growth. _____________________________________________________________________________________________ _____________________________________________________________________________________________

'New growth theory' states that increases in ________ capital will result in ________ at the ________ level.

Long-run economic growth is measured by changes in real GDP per person over time.

The three main methods of measuring GDP are the

The owner of a firm wants some advice on how to increase productivity.Suggest three ways the entrepreneur could increase labour productivity through improving technology. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Refer to Table 13.1 for the following questions. Table 13.1 A very simple economy producing three goods: movies, burgers, and bikes. 2012 2017 Product Quantity Price Quantity Price Movies 20 \ 6 30 \ 7.00 Burgers 100 \ 2 90 \ 2.50 Bikes 3 \ 1000 6 \ 1100 2012 2017 Praduct Quantity Price Quantity Price Movies 20 \ 6 30 \ 7.00 Burgers 100 \ 2 90 \ 2.50 Bikes 3 \ 1000 6 \ 1100 -Refer to Table 13.1.What is real GDP in 2017,using 2012 as the base year?

If the GDP deflator is 142,by how much have prices changed since the base year?

A weakness of the measurement of GDP is that it includes the value of intermediate goods,therefore some double counting occurs.

How is total production in the economy measured?

________ is/are the payment for the factor of production ________.

Refer to Table 13.2 for the following questions. Table 13.2 Nominal GDP \ 12000 \ 13000 Real GDP \ 9500 \ 10500 -Refer to Table 13.2.Calculate the rate of increase in the price level from 2017 to 2018.