GDP example #70632

If the U.S. Bureau of Economic Analysis​ (BEA) added up the values of every good and service sold during the​ year, would the total be larger or smaller than measured gross domestic product​ (GDP)?

Indicate whether each of the following transactions represents the purchase of a final good... . 1. The purchase of wheat from a wheat farmer by a bakery. 2. The purchase of two new elementary school buildingstwo new elementary school buildings by the statestate government. 3. The purchase of French wine by a U.S.. consumer. 4. The purchase of a new machine tool by the Ford Motor Company.

Indicate whether you agree or disagree with the following​ statement: ​"In years when people buy many shares of​ stock, investment will be high ​and, therefore, so will gross domestic product... ​(GDP)."

Which equation represents the relationship between GDP and the four major expenditure​ components? a) Y= C(I+G+NX) b) Y=C+I+G+NX c) Y=(C+I)/(G+NX) d) Y=(C+I)-(G+NX)

What are the four major components of expenditures in​ GDP?

indicate whether each of the following is a final​ good, an intermediate​ good, or neither. Coffee beans purchased by a coffee shop One share of Google stock A new​ pick-up truck purchased by a consumer A new home purchased by a family

Which of the following is considered to be a problem in using GDP as a measure of national ​well-being​? a) GDP is not adjusted for changes in crime and other social problems.GDP is not adjusted for changes in crime and other social problems. b)Items included in GDP are sold in markets.Items included in GDP are sold in markets. c) GDP does not include the value of illegal goods comma such as drugs.GDP does not include the value of illegal goods, such as drugs. d) GDP does not include the market value of items produced for personal use.GDP does not include the market value of items produced for personal use.

Which of the following transactions is not counted in​ GDP? A. A business buys new computers for its workers. B. The U.S. government pays for national defense. C. A consumer purchases a new car. D. A consumer prepares meals for his family.

Michael Burda of Humboldt University in Germany and Daniel Hamermesh of the University of Texas examined how workers in the United States who lost their jobs between 2003 and 2006 spent their time. They discovered that during the period when they were​ unemployed, the reduction in the number of hours of paid work was almost completely replaced by an increase in the number of hours spent on household production. Based on these​ findings, what can we predict about total productionlong dash—whether or not that production is included in the calculation of GDPlong dash—in the economy when these workers became​ unemployed? a) If the workers had been paying other people to perform the household activities prior to​ unemployment, then total production will fall. b) Since household production is not calculated in​ GDP, there is a decrease in total production that comes due to unemployment. c) When workers lose their​ jobs, total production falls since workers are no longer earning wages. d) If the workers had been paying other people to perform the household activities prior to​ unemployment, then total production will rise

Ambrosia, a small country in the Mediterranean​ region, has an​ agriculture-based economy. In recent​ years, a decline in global trade barriers has led to a massive increase in agricultural production in Ambrosia. The government of Ambrosia has claimed that this expansion has increased the​ country's GDP and also improved the overall welfare of its people by increasing employment opportunities.​ However, critics of the government have claimed that this expansion has actually made the people of Ambrosia worse off. Which of the​ following, if​ true, would support the​ critics' argument? A. Increased agricultural production accounted for most of the increase in GDP. B. The expansion was made possible by an expansion of pesticide use that has damaged the natural environment. C The agricultural market in Ambrosia faces limited competition from the producers in other countries. D. Domestic demand for agricultural products is relatively low in comparison to worldwide demand. E The prices of inputs used in the production of agricultural products have declined.

U.S. Gross National Product​ (GNP) differs from U.S. Gross Domestic Product​ (GDP) in which of the following​ ways?

When a significant fraction of domestic production takes place in​ foreign-owned facilities, a​ country's difference between GDP and GNP is as​ follows: