Exam 10: Measuring a Nations Income

The information for 2008 in millions in the table below was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of real GDP per person from highest to lowest?

If an economy's GDP falls, then it must be the case that the economy's

An identity is an equation that

If in some year nominal GDP was $28 trillion and real GDP was $32 trillion, what was the GDP deflator?

Which of the following examples of household spending is categorized as investment rather than consumption?

GDP is used as the basic measure of a society's economic well-being. A better measure of the economic well-being of individuals in society is

Table 23-6 The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2013. -Refer to Table 23-6. In 2013, this country's GDP deflator was

You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully.

A U.S. citizen buys a tea kettle manufactured in China by a company that is owned and operated by U.S citizens. In which of the following components of U.S. GDP is this transaction accounted for?

Calculate GDP for a country with investment of $2 trillion, government purchases of $3 trillion, capital depreciation of $1.5 trillion, consumption of $10 trillion, exports of $3.4 trillion, and imports of $3.9 trillion.

In the circular flow diagram what are the three types of payments from firms to factors of production? Is the sum of these payments greater than, less than, or equal to GDP?

Which of the following transactions would be included in GDP for 2015?

If a good produced this quarter goes into inventory, then it is included in this period's GDP. If it is sold in the next quarter, it will have no effect on GDP.

If real GDP doubles and the GDP deflator doubles, then nominal GDP

When a U.S. citizen buys $500 of Chinese-made parts for a motorcycle,

A statistical discrepancy

If a U.S. company buys an electrical generator made in Japan by a Japanese firm, and the Japanese firm uses the payment to buy stocks issued by a U.S. company then

Real GDP will increase

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

In early 2010 Molly paid $200,000 for a house built in 2000. She spent $30,000 on new materials to remodel the house. Although Molly lived in the house after she remodeled it, its rental value rose. Which of the following contributed to real GDP in 2010?