Measurement: Lesson 3 – Flashcards

Unlock all answers in this set

Unlock answers
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
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New