Which of the following is excluded when calculating GDP? O A. The value of bonds. O B. The value of used goods. O C. The value of stocks. O D. All of the above are not counted when calculating GDP. Counting the sales of used goods when calculating GDP would be an example of double counting. A. True B. False
Q: Refer to Table Above. What is the value of GDP? O $1,150 billion O $1,210 billion O $1,060 billion O…
A: GDP or the gross domestic product refers to the value of all final and finished goods and services…
Q: If Ralph pays someone to mow his lawn and Norton mows his own lawn, what is the impact on GDP? O a.…
A: The economics as a study is based upon the idea that the resources which are available with the…
Q: If nominal GDP is $7,600 billion and the GDP deflator is 121, then real GDP is: O $9,196 billion O…
A: Real GDP measures the market value of goods and services using constant sets of prices.
Q: using the table below giving the quantity and price of goods produced in an economy in two periods…
A: GDP refers to the total value of finished goods and services that produced within the economic…
Q: Suppose Eugene used to volunteer to cut his elderly neighbour's grass, but now his neighbour paya a…
A: Voluntary work is not included in the calculation of GDP. Eugene was volunteering so this will have…
Q: Once more, consider the economy of Economia. If households started buying more houses and firms…
A: When talking about GDP, any change in buying behavior of households and firms will have a…
Q: If in some year nominal GDP was $40 billion and the GDP deflator was 70, what was real GDP? O $30.0…
A: Over the course of a year, the GDP deflator measures the price level of all new, domestically…
Q: Suppose that for a particular economy, nominal GDP in 2015 falls, compared to its previous level in…
A:
Q: Nominal Year Price level GDP 1982 100 €1,600 1992 150 €3,000 2002 300 €6,000 In the above table,…
A: The nominal GDP increased between 1992-02 from 3000 to 6000 $ Real GDP in 1992 = Nominal GDP / Price…
Q: Which of the following is an example of (economic) investment I, as defined in GDP accounting? O a.…
A: Private domestic investment or capital expenditures are referred to as "investments." Businesses…
Q: One key difference between national income and net domestic product is Select one: O a. net domestic…
A: We know that the Net domestic product (NDP) can be defined as the total market value of all the…
Q: Which of the following does NOT affect potential GDP? O A. the quantity of capital and human capital…
A: Here, option E is correct. Becuase potential GDP is defined as the maximum output which can be…
Q: Question 26 To avoid double counting when calculating gross domestic product (GDP), it is best to…
A: To avoid the problem of double counting, only value added at each stage of production should be…
Q: Under the expenditure categories to measure GDP, Why are (exports minus imports) included instead of…
A: The expenditure method of GDP looks at the expenditure side of the economic activities. It is…
Q: Of the following, which is correct? O Nominal GDP does not change when the production of goods and…
A: Nominal GDP is the value of goods and services produced. Real GDP is the value of goods and services…
Q: Joe has a full-time construction job and also does odd jobs for people on the weekends but does not…
A:
Q: GDP is defined as the market value of all in a given time period. O a. final goods and services…
A: GDP is the value of all final goods and services produced within the domestic territory of a country…
Q: The components of aggregate expenditure are consumption expenditure O a. investment, government…
A: The aggregate expenditure refers to the total expenditure in an economy. When the economy is in…
Q: Which of the following is the most detail-orientated approach used to calculate GDP? O none of the…
A: The gross domestic product (GDP) of a country is a measure of its economic output.It includes all…
Q: 12) In 2018, the total consumption in the X Country was $22,400 and the total investment activities…
A: GDP by expenditure approach combines the actual expenditures realized by the four major pillars of…
Q: Currently, in the U.S. economy, the largest component on the expenditures side of the GDP equation…
A: The economies tend to work upon the basis of the expenditures done by various entities, and the…
Q: A farmer sells $150,000 of apples to individuals who take them home to eat and $75,000 of apples to…
A: A farmer is selling the apples to two individuals one is final consumer and one is the producer.
Q: When Ellen buys a new computer for her accounting business, it is included in gross domestic product…
A: GDP measures the value of goods and services produced in an economy within the borders of the…
Q: Which of the following statements about nominal and real GDP is correct? O A change in real GDP…
A: Below are the formulas for Real and Nominal GDP. Real GDP = Nominal GDP - InflationNominal GDP =…
Q: Suppose a house is built and sold in the year 2006. If the house is resold in the year 2017, would…
A: Answer- Need to find- Suppose a house is built and sold in the year 2006.If the house is resold in…
Q: Which of these statements is not true when we discuss GDP calculation? O a. GDP includes earnings of…
A: GDP refers to the sum of the value of goods and services produced in a country in a particular…
Q: U.S. GDP in 2021 was closest to which number? O $11 trillion O $24 trillion O $21 trillion O $15…
A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…
Q: Which of the following is included in GDP? O The buying and selling of securities. O Government…
A: GDP is the sum of final economic goods and services produced in an economy within a year.
Q: Which of the following is included in GDP? O revenue from the sale of a three-year old car O the…
A: GDP stands for Gross domestic product which include value of goods and services produced within the…
Q: Which of the following would NOT be included in a nation's Gross Domestic Product (GDP)? Select one:…
A: Gross domestic product (GDP) refers to total value of all final goods and services that produced…
Q: According to the BEA, in the second quarter of 2012 state and local government spending on goods and…
A: The expenditure approach to deal with a GDP considers the amount of every final service and good…
Q: Refer to the table shown. What is the value of GDP using the expenditure approach? $4,785 350 235…
A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…
Q: Using the information in the table below, calculate GDP using the expenditure approach. NZSNA…
A: Ans. The Gross Domestic Product (GDP) is the value of final goods and services produces within an…
Q: The government purchases category of gross domestic product (GDP) includes spending by a) federal,…
A: GDP includes value of final goods and services produced in the economy within a given period of time…
Q: If deflation is OCcurring and nominal Gross Domestic Product (GDP) is increasing over time, then…
A: GDP is considered an important factor to evaluate the stability, growth, and performance of an…
Q: What is the expenditure approach to measuring GDP? The expenditure approach to measuring GDP sums…
A: An expenditure approach is an approach that sums all the spending activities of the economy. These…
Q: Which of the following statements are correct? Select one or more: O a. Government spending on goods…
A: GDP The Gross Domestic Product (GDP) basically refers to the sum of all the value added in a given…
Q: In the first half of 2017, automobile sales in the United States were lower than they were in the…
A: GDP calculation by the expenditure method is based on summation of consumption expenditure, private…
Q: A company produced 8 dishwasher machines in 2015. The company sold 6 to households in 2015 and added…
A: To find the company output in the given question.
Q: Calculate GDP using the information in the table below: $Billion Durable goods 500 Nonresidential…
A: GDP is the value of final goods and services produced in the economy within a given period of time.
Q: In year one, real GDP is $4,500 and in year two real GDP is $4,800. What was the grawth rate of real…
A: Note: You have uploaded multiple questions at a time. Hence, we shall answer the first one for you.…
Q: Which of the following statements is true about GDP as a measure of a country's economic healt?…
A: GDP is the sum of the monetary value of goods and services produce within a country irrespective of…
Q: Below is a summary of the goods produced by a small economy in 2017: Product Quantity Price per unit…
A: GDP measures the final value of all goods and services that are produced within the domestic…
Q: If nominal GDP is $900 and GDP deflator is 120, what is the real GDP in the economy? O a. 1350 O b.…
A: Real GDP = (Nominal GDP / GDP deflator) x 100
Q: GDP would be a better measure of economic well-being if it included: Select one: O a. the costs of…
A: GDP would be a better measure of economic well being if it included the value of leisure.
Q: Spending by households (public) is counted in the consumption category of gross domestic product,…
A: In economics, spending of the household is described as the amount of final expenditure of…
Q: 1 1. The equation, GDP = C + GI+ GP + NX, best describes the O a. the Income approach to measuring…
A: Gross Domestic Product, or GDP is the sum of final value of all goods and services produced in an…
Q: The Data of Macroeconomics-End of Chapter Problem Place each of the following transactions in the…
A: Gross Domestic Product refers to the value of all final goods and services produced in an economy…
Q: Which of the following scenarios are either not accounted for or measured inaccurately by either the…
A: The GDP or the Gross Domestic Product refers to the value of all the final goods and services that…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Which of the following statements is true about GDP as a measure of a country's economic healt? Select one: O a. It does not include the services produced in a country O b. It includes profits from companies' overseas operations O c. It does not include profits earned by foreign companies within the country being measured O d. It essentially takes into account the concept of GDP in relation to population O e. It measures only those goods and services made within a countryUnder the expenditure categories to measure GDP, why are net exports (exports minus imports) included instead of just exports? Select one: a. GDP is a measure of all final goods and services purchased by American citizens around the world. O b. The imports include goods that were produced with intermediate goods made by American firms. O c. The values of C, I and G include spending on all final goods and services, including imports, and these imports must be subtracted out. O d. The government wants to ignore income that Americans spend on foreign-made products.If Ralph pays someone to mow his lawn and Norton mows his own lawn, what is the impact on GDP? O a. Neither what Ralph pays nor the estimated value of Norton's mowing is included in GDP. b. The answer depends on what Norton reports to survey takers. What Ralph pays to have his lawn mowed and the estimated value to Norton of mowing his own lawn are both included in GDP. O d. Only what Ralph pays to have his lawn mowed is included in GDP.
- A rancher raises sheep. Once a year he shears themn and sells the raw wool to a processor who cleans it and spins it into yarn. The yarn is then sold to a knitting mill, which produces and sells sweaters. In calculating GDP we would count Select one: O a. only the yarn and the sweaters. O b.only the raw wool and the yarn. O c. the raw wool, the yarn and the sweaters. O d. only the sweaters. Next page P eb and WindowsWhich of these statements is not true when we discuss GDP calculation? O a. GDP includes earnings of both the citizens and non-citizens but are residing inside the country. Ob. Incomes made by a citizen outside of his country will be included in the calculation of GDP O c. Expenditures of citizens and non-citizens made inside the country is included in GDP calculation O d. Incomes made by expatriates are included in the calculation of GDPShay used to go to Jiffy Lube to have the oil changed in her car, but now she changes the oil herself. Which of the following is correct? The value of the labor needed to change the oil in a car is O A. included in GDP if Shay pays liffy Lube to do it but not if she does it herself. O B. not included in GDP whether Shay pays Jiffy Lube to do it or if she does it herself. O C. included in GDP if Shay does it herself, but not if she pays Jiffy Lube to do it. O D. included in GDP whether Shay pays Jiffy Lube for the service or if she does it herself. Reset Selection
- Which one of the following has to be taken into account when GDP is estimated? O A. John purchases shares to the value of R150 000 in Anglo American plc. O B. Peter invests in a 24-month tax-free fixed deposit. O C. A firm buys Mpho, its sales representative, a new car. O D. Patrick, a university student, buys an old car from a friend. O E. Anne, a civil pensioner, receives her monthly pension from the government.Which of the following transactions would not be included in the calculation of GDP on the expenditure side? O A. The purchase of a plumber's services by a household. OB. The purchase of an airplane by Air Canada. O C. The purchase of ground beef by McDonald's. D. The purchase of a new boat by a household.Additions to inventory O a. Add to next year's GDP when goods are actually sold O b. Add to current year's GDP O C.Are prices at zero since they have not been sold O d. Are simply intoned while calculating GDP
- A country's GDP is being measured by the expenditure method. Various categories of expenditure are recorded as follows (in billions of dollars): households' spending on consumption firms spending on capital goods firms' additions to inventories govemment spending on services government spending on capital goods government transfers (e.g., Social Security) value of exports value of imports 100 15 O$143 billion O$135 billion O$123 billion $167 billion None of the other answers are correct. 1 10 2 20 7 12 [If the image above doesn't appear click here to open it in a new tab.] What is the correct estimate of GDP?Currently, in the U.S. economy, the largest component on the expenditures side of the GDP equation is typically whereas on the income side of the equation the largest component is typically O a. government spending; wages and salaries O b. consumption; government spending wages and salaries; government spending O d. consumption; wages and salaries Next pageIn the first half of 2017, automobile sales in the United States were lower than they were in the first half of 2016. The decrease in auto sales impacts GDP because new automobiles are counted as when purchased by households and when purchased by businesses. O investment; consumption O nondurable goods; durable goods O durable goods: nondurable goods O consumption; investment