The value of the goods added to inventory is. A German citizen buys an automobile produced in the United States by a Japanese company. A tire manufacturer produces 400 tires valued at $20 each. 16. In the economy of Talikastan in 2015, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $1800, and imports were $1200. Which of the following is included in GDP? 97. The statistical discrepancy that regularly arises in national income accounting refers to the slight difference between. How is net national product (NNP) calculated? d. All of the above are correct. Your IP: Suppose further that a current estimate of the value of the condominium owners' housing services is the same as the rent they previously paid. Which of the following statements regarding GDP is correct? In the base year, the GDP deflator is always, 74. Which of the following statistics is usually regarded as the best single measure of a society's economic well-being? GDP equals, 55. How much did these actions add to GDP? Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. 6. Sheri, a U.S. citizen, works only in Germany. Production of good A contributes. In computing GDP, market prices are used to value final goods and services because It follows that. In the national income accounts, depreciation is called, 36. 44. If an economy's GDP rises, then it must be the case that the economy's. The formula for the income approach is as follows:GDP = π + wl + rkwhere:π = profits that firms makewl = wage * total labour provided - this is the returns to labour.rk = rental rate of capital * the amount of capital provided If nominal GDP is $10 trillion and real GDP is $8 trillion, then the GDP deflator is. A professional gambler moves from a state where gambling is illegal to a state where gambling is legal. GDP per person tells us the income and expenditure of the, 89. How much of the farmer's sales will be included as apples in GDP? Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of $9,000, exports of $2,500, imports of $2,700, transfer payments of $750, capital depreciation of $800, and investment of $3,000. How much is added to GDP? In 2010, 1000 iPhones are sold at $300 each and 5000 pounds of bananas are sold at $3 per pound. Which of the following statements about recessions is true? Three hundred tires are sold to a tire shop, which then sells them to households for $50 each. Suppose an economy produces only iPhones and bananas. Another way to prevent getting this page in the future is to use Privacy Pass. 59. • 86. Which of the following represents a transfer payment? A recession is always associated with, 88. Most of his income was, and continues to be, from gambling. From these numbers which country is likely to have had the higher standard of living? 34. A stove is produced by a firm in 2014, added to the firm's inventory in 2014, and sold to a household in 2015. For example, real GDP was $17.096 trillion in 2017. 69. If you buy a burger and fries at your favorite fast food restaurant. Which of the following is included in government purchases? 25. 56. $17.096 trillion = $19.391 trillion / 1.13421. Recessions are not associated with which of the following? GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because, 18. 96. To encourage formation of small businesses, the government could provide subsidies; these subsidies. The income that households and noncorporate businesses receive is called, 40. 52. Factor payments are all the payments that go to inputs to produce output. 17. What was Talikastan's consumption in 2015? A better measure of the economic well-being of individuals in society is. 93. In 2010, 50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit. 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. What was this country's inflation rate? Twenty of these cars are sold and 10 are left in inventory. What was Talikastan's GDP in 2015? 2. 62. A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The consumption component of GDP includes spending on. Because every transaction has a buyer and a seller, 7. d. 12. GDP is used as the basic measure of a society's economic well-being. add up the quantities of all final goods and servicesc. 41. 53. Which of the following is a way to compute GDP? add up the market values of all final goods and services. Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale, are, 27. The most common methods include: 1. consumption consist of spending by households on goods and services, with the exception of. 95. In the GDP accounts this transaction is included in, 54. If nominal GDP doubles and the GDP deflator doubles, then real GDP, 67. Which of the following is the correct formula for the GDP deflator? A farmer sells $25,000 worth of apples to individuals who take them home to eat, $50,000 worth of apples to a company that uses them all to produce cider, and $75,000 worth of apples to a grocery store that will sell them to households. It follows that, 68. A U.S.-owned automobile factory uses $100,000 worth of parts purchased from foreign countries along with U.S. inputs to produce 30 cars worth $20,000 each.