FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 23: Measuring a Nations Income

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

True/False

Review LaterAdd Note

Review Later

Periods during which real GDP rises are called recessions.

A) True
B) False

Correct Answer

verified

Show Answer

Question 92

True/False

Review LaterAdd Note

Review Later

GDP is the market value of all final goods and services produced by a country's citizens in a given period of time.

A) True
B) False

Correct Answer

verified

Show Answer

Question 93

Multiple Choice

Review LaterAdd Note

The percentage change in the price level from one period to another is called the

Table 23-6 The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities -Refer to Table 23-6. What was the inflation rate for 2011? Show your work.

In the national income accounts, depreciation is called

Table 23-1 The following table contains data for Mindalion for the year 2019. ​ $\begin{array} { | l | l | } \hline \text { GDP } & \$ 700 \\\hline \text { Income earned by citizens abroad } & \$ 13 \\\hline \text { Income foreigners earn here } & \$ 12 \\\hline \text { Losses from depreciation } & \$ 5 \\\hline \text { Indirect business taxes } & \$ 10 \\\hline \text { Statistical discrepancy } & \$ 0 \\\hline \text { Retained earnings } & \$ 8 \\\hline \text { Corporate income taxes } & \$ 12 \\\hline \text { Social insurance contributions } & \$ 30 \\\hline \text { Interest paid to households by government } & \$ 8 \\\hline \text { Transfer payments to households from government } & \$ 55 \\\hline \text { Personal taxes } & \$ 60 \\\hline \text { Nontax payments to government } & \$ 11 \\\hline\end{array}$ -Refer to Table 23-1. The market value of all final goods and services produced within Mindalion in 2019 is

What are exports, and how are they different from imports?

If real GDP is higher in one country than in another, then we can be sure that the standard of living is higher in the country with the higher real GDP.

GDP does not make adjustments for leisure time, environmental quality, or volunteer work.

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.

National income differs from net national product because

Table 23-7 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. $\begin{array} { | l | l | l | l | l | } \hline \text { Year } & \begin{array} { l } \text { Price of Ice } \\\text { Cream }\end{array} & \begin{array} { l } \text { Quantity of Ice } \\\text { Cream }\end{array} & \text { Price of Cake } & \begin{array} { l } \text { Quantity of } \\\text { Cake }\end{array} \\\hline 2011 & \$ 2.00 & 200 & \$ 10 & 40 \\\hline 2012 & \$ 2.30 & 250 & \$ 14 & 50 \\\hline 2013 & \$ 2.75 & 280 & \$ 18 & 80 \\\hline\end{array}$ -Refer to Table 23-7. Calculate the rate of inflation for 2012.

If total spending rises from one year to the next, then

The investment component of GDP refers to financial investment in stocks and bonds.

In the actual economy, goods and services are purchased by

​GDP excludes the purchases of sliced bread by a sandwich shop, because the bread is an intermediate good in this case.

Table 23-2 The following table contains data for country Mindalion for the year 2019. ​ $\begin{array} { | l | l | } \hline \text { Household purchases of durable goods } & \$ 1,695 \\\hline \text { Household purchases of nondurable goods } & \$ 1,717 \\\hline \text { Household purchases of services } & \$ 400 \\\hline \text { Household purchases of new housing } & \$ 704 \\\hline \text { Purchases of capital equipment } & \$ 310 \\\hline \text { Inventory changes } & \$ 399 \\\hline \text { Purchases of new structures } & \$ 611 \\\hline \text { Depreciati on } & \$ 117 \\\hline \text { Salaries of government workers } & \$ 1,422 \\\hline \text { Government expenditures on public works } & \$ 589 \\\hline \text { Transfer payments } & \$ 777 \\\hline \text { Foreign purchases of domestically produced goods } & \$ 88 \\\hline \text { Domestic purchases of foreign goods } & \$ 140 \\\hline\end{array}$ -Refer to Table 23-2. What was country Mindalion's consumption in 2019?

Many things that society values, such as good health, high-quality education, enjoyable recreation opportunities, and desirable moral attributes of the population, are not measured as part of GDP. It follows that

Figure 23-2 ​ -Refer to Figure 23-2. Identify the location of firms and households.

Unemployment compensation is