Exam 6: GDP and the Measurement of Progress

A tractor built in 2001 and still in operation today is:

A large part of what government does is transfer money from one citizen to another citizen.

A computer chip that you purchase to repair your home computer is an example of:

If nominal GDP grows by 3% and the GDP deflator grows by 2%,then real GDP must grow by 5%.

Which of the following would be included in GDP for the United States?

The national spending approach classifies all of the spending in a nation as consumption,investment,government purchases,or net exports.

In the factor income approach,income to owners of capital is called rent.

Consumption spending tends to be more stable than investment spending in the U.S.economy.

Which of the following is NOT included in the consumption component of GDP?

Intermediate goods are goods:

The value of a car produced by Kia (a South Korean company)in a factory located in Tennessee would be included in U.S.GNP.

Economists call private spending on the tools,plant,and equipment used to produce future output:

The market value of all final goods and services produced by a country's permanent residents in a year,regardless of where the production takes place,divided by the country's population is:

Which of the following statements is TRUE about GDP?

If a country produced nothing but 20 smartphones and 10 Blu-ray players in 2011,priced at $100 per smartphone and $200 per Blu-ray player,its GDP in 2011 would be:

Nominal GDP will grow faster than real GDP only when there is inflation.

What makes a bigger contribution to GDP,12 million cars sold at $28,000 each or 20 million computers sold at $1,000 each?

If pressed to choose a single indicator of current economic performance,most economists would probably choose nominal GDP growth.

Services involve production that provides:

GDP is the market value of all final goods and services produced by a country's permanent residents,wherever located,in a year.