Exam 10: Measuring a Nations Income: The Measurement of GDP

One bag of flour is sold for $1.00 to a bakery,which uses the flour to bake bread that is sold for $3.00 to consumers.A second bag of flour is sold for $1 to a grocery store who sells it to a consumer for $2.00.Taking these four transactions into account,what is the effect on GDP?

Which of the following items is included in U.S.GDP?

Michigan Cranberry Company sold $10 million worth of cranberries it produced.In producing cranberries,it purchased $1 million dollars worth of supplies from foreign countries and paid workers who reside in Canada but commute to the U.S.$1 million.How much did these transactions add to U.S.GDP?

Which of the following is an example of depreciation?

For monitoring fluctuations in the national economy,which measure of income is best?

In order to include many different goods and services in an aggregate measure,GDP is computed using,primarily,

Sam,an American citizen,prepares meals for his family at home.Ellen,a Canadian citizen,commutes to the U.S.to help prepare meals at a restaurant in Idaho.Whose value of services preparing meals is included in U.S.GDP?

Gina,a U.S.citizen,works only in Bermuda.The value of Gina's production is included in

Which of the following is a way to compute GDP?

The government of country A,which has adopted American GDP accounting conventions,has calculated that the seasonally-adjusted market value of all final goods and services produced within country A in quarter 1 was $5 billion.The government will report that GDP in quarter 1 was

A farmer produces oranges and sells them to Fresh Juice,which makes orange juice.The oranges produced by the farmer are called

James owns two houses.He rents one house to the Johnson family for $10,000 per year.He lives in the other house.If he were to rent the house in which he lives,he could earn $12,000 per year in rent.How much do the housing services provided by the two houses contribute to GDP?

Quality Motors is a Japanese-owned company that produces automobiles;all of its automobiles are produced in American plants.In 2010 Quality Motors produced $30 million worth of automobiles,with $17 million in sales to Americans,$9 million in sales to Canadians,and $4 million worth of automobiles added to Quality Motors' inventory.The transactions just described contribute how much to U.S.GDP for 2010?

A Mexican oil field service company works on oil rigs in the U.S.The value of the company's services produced by Mexican citizens and the equipment they own is included in

Disposable personal income is the income that

Transactions involving items produced in the past,such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale,are

Which of the following items is included in U.S.GDP?

Which of the following items is included in U.S.GDP?

Most goods and services produced at home

Gross domestic product includes all