question

U.S. gross domestic product is the market value of all the? ______ produced? ______ in a given time period.

answer

final goods and? services; within the United States

question

?______ good is an item that is bought by its final user during a specified time period. ?______ good is an item that is produced by one? firm, bought by another? firm, and used as a component of a final good or service.

answer

A? final; An intermediate

question

Which of the following are included in the expenditure approach to calculating? GDP?

answer

consumption expenditure,government expenditure?; net exports of goods and services

question

An incorrect statement

answer

The Lucas Wedge equals real GDP minus potential GDP

question

Aggregate expenditure in the United States is equal to consumption expenditure plus investment? ______.

answer

plus government expenditure plus net exports

question

Example of government expenditure

answer

secret service protection for the President

question

A correct statement

answer

the sum of compensation of employees and other factor incomes is net domestic income at factor cost

question

Real GDP

answer

does not include a measure of household production or underground economic activity

question

Incorrect statement

answer

Real GDP per person grows at a constant rate

question

?______ is an example of U.S. consumption expenditure.

answer

your purchase of a tire for your car

question

A typical business cycle can be described by the sequence? ______.

answer

?expansion, peak,? recession, trough

question

To make comparisons of real GDP between two countries we must? ______.

answer

convert the real GDP of one country into the same currency units as the real GDP of the other? country, and use the same prices to value the goods and services in the countries being compared

question

Correct statement

answer

Nominal GDP is just a more precise name for GDP

question

When GDP per person in China in 2013 is valued at? ______, GDP per person in the United States is? _______ times that in China.

answer

the market exchange rate; 7.9

question

choose the correct statement

answer

to isolate the increase in production from the rise in prices, we distinguish between real GDP and nominal GDP

question

Which of the following are included in the income approach to calculating? GDP?

answer

corporate profits; indirect taxes less subsidies; depreciation; rental income

question

During a? year, a? firm's gross investment $7,000 and net investment is ?$5,600 The? firm's depreciation is? ______.

answer

$1,400

question

The goods and services that we sell to people in other countries are? ______. The goods and services that we buy from people in other countries are? ______.

answer

?exports; imports

question

The value of exports of goods and services minus the value of imports of goods and services is? ______.

answer

called net exports

question

Cough medicine purchased by Tracy who has a cold is an example of? ______ good. Flour purchased by Chef Bondi to make pizza dough is an example of? ______ good.

answer

a final; an intermediate

question

Concrete purchased by Your Swimming Pool Inc. is an example of? ______ good. Lumber purchased by the Table and Chair Manufacturing Company is an example of? ______ good.

answer

an intermediate; an intermediate

question

In 20062006?, U.S. GDP using the income approach is ?$12.9 trillion and net domestic income at factor cost is ?$10.4 trillion. What is the value of indirect taxes less subsidies plus depreciation in 2006?

answer

The value of indirect taxes less subsidies plus depreciation in 2006 is ?$2.5 trillion.

question

All of the following are examples of investment except? ______.

answer

a person money adding money to his retirement fund

question

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

answer

a 2014 Cadillac CTS produced and sold as a new car in the United States in 2014

question

Potential GDP per person

answer

grows at a steady pace but not at a constant pace

question

Choose the correct equation

answer

Depreciation= Gross- Net investment

question

Choose the statement that is incorrect

answer

Canada has the world's highest HDI value

question

Net exports increase when

answer

exports increase and imports decrease

question

Consider the following statements about factors that influence the standard of? living, and choose the statement that is incorrect.

answer

the omission of household production from GDP means that GDP overestimates total production

question

Gross Domestic Product

answer

is the value of the aggregate production of goods and services in a country during a given time period.

question

GDP specifics

answer

the market value of final goods and services newly produced domestically •market value: prices at which goods and services can be purchased. Not "factor cost"--what the supplier gets. •final: avoids double counting • goods and services: not bads and disservices • newly produced: do not count sale price of an Andy Warhol painting; do count the broker's services • domestically: within the borders of the U.S. (GNP uses "by domestically owned factors of production" in place of "domestically").

question

a _____ is a quantity per unit of time

answer

flow

question

A _____ is a quantity that exists at a point in time

answer

stock

question

Capital

answer

The plant, equipment, buildings, and inventories of raw materials and semi-finished goods that are used to produce other goods and services. (Stock)

question

Depreciation

answer

The decrease in the stock of capital that results from wear and tear and obsolescence. (Flow) • Otherwise known as capital consumption

question

Gross Investment

answer

The total amount spent on adding to the stock of capital and on replacing depreciated capital

question

Net Investment

answer

the amount spent on adding to the stock of capital -Gross investment minus Depreciation

question

The Product Approach

answer

uses the amount of output firms produce

question

The Income Approach

answer

Uses the incomes received by producers

question

The Expenditure Approach

answer

Uses the amount of spending done by purchasers Y=consumption+ investment+ government spending+ net exports

question

Fundamental Identity

answer

total production= total income =total expenditure

question

Net Domestic Product(NDP)

answer

=GDP-CCA Under Income Approach

question

Domestic Income

answer

=NDP-Ind Bus Taxes under income approach

question

CCA

answer

capital consumption allowances or "depreciation"

question

Consumer Price Index

answer

- Measures the average level of prices of the goods and services that a typical urban family buys. - Gives the price of a given basket of goods and services now vs. the price of the same basket in a base year.

question

The GDP Deflator

answer

- Measures the average level of prices of all the goods and services that are included in GDP - Idea of calculation: compare cost of current purchases to cost of same purchases earlier • recall that the CPI compares cost of base year purchases to cost of same purchases now.

question

At 2013? prices, the value of production in 2014 was 10 percentage points higher than in 2013. At 2014? prices, the value of production in 2014 was 12 percentage points higher than in 2013. The? chained-dollar real GDP is? ______ in 2014 than in 2013.

answer

11 percent greater

question

Choose the option that is an example of government expenditure.

answer

the purchase of office supplies for the office of the junior senator from New York

question

When GDP per person in China in 2013 is valued at? ______, GDP per person in the United States is? _______ times that in China.

answer

the market exchange rate; 7.9

question

Choose the correct statement

answer

To isolate the increase in production from the rise in prices, we distinguish between real GDP and nominal GDP

question

Choose the correct statement

answer

Nominal GDP is just more precise name for GDP

question

?______ is an example of U.S. consumption expenditure.

answer

Your purchase of a flight on American Airlines

question

Choose the statement that is incorrect.

answer

The Lucas Wedge equals real GDP minus potential GDP

question

_______ good is an item that is bought by its final user during a specified time period.`

answer

A final

question

?______ good is an item that is produced by one? firm, bought by another? firm, and used as a component of a final good or service.

answer

An intermediate

question

Choose the correct statement

answer

To get from factor cost to market price, we add indirect taxes and subtract subsidies

question

Choose the statement that is incorrect.

answer

Real GDP per person grows at a constant rate

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