Chapter 11 Practice Quiz Tutorial Gross Domestic Product

Slides:



Advertisements
Similar presentations
Measuring the Economy’s Performance
Advertisements

Measuring National Output and National Income
The Measurement and Structure of the Natural Economy
National-Income Accounting
Chapter 8 Measuring the Economy’s Performance Chapter 8:
Chapter 2: The Data of Macroeconomics
Measuring Domestic Output and National Income
Measuring the State of the Economy
GDP.
MEASURING AGGREGATE ECONOMIC ACTIVITY
National Income Accounting
Chapter 2 The Measurement and Structure of the Canadian Economy Economics 282 University of Alberta.
Gross Domestic Product (GDP) The sum of the flow of all final economic goods and services produced by the domestic economy during a relevant period of.
1 National Income and Product Accounting Gross vs. Net Domestic vs. National Product vs. Income.
Chap 10, Mankiw – Measurement of national income
Measuring the Economy’s Performance
Chapter 15 Gross Domestic Product
Slide 8-1 The Simple Circular Flow. Slide 8-2 The Simple Circular Flow.
Taking the Nation’s Economic Pulse
C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to Define GDP and explain why the value of production,
Learning Objectives Know what GDP measures – and what it doesn’t Know the difference between real and nominal GDP Know why aggregate.
Chapter 2 The Measurement and Structure of the Canadian Economy Copyright © 2012 Pearson Education Inc.
NATIONAL INCOME ACCOUNTING
07 Measuring Domestic Output and National Income McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
THE MEASUREMENT AND STRUCTURE OF THE CANADIAN ECONOMY
1 Chapter 15 Gross Domestic Product Key Concepts Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2002 South-Western College Publishing.
Chapter 15 Gross Domestic Product
Chapter 21 Tracking the U.S. Economy © 2009 South-Western/ Cengage Learning.
Measuring a Nation’s Income
Gross Domestic Product Measures Total Production Gross domestic product (GDP) The market value of all final goods and services produced in a country during.
Measuring Domestic Output & National Income
Chapter 12 Section 1.  National Income Accounting ◦ Look at production, income, investment, and savings ◦ Department of Commerce.
1 Gross Domestic Product Economics for Today by Irvin Tucker, 6 th edition ©2009 South-Western College Publishing.
Chapter 8 Measuring the Economy’s Performance. Slide 8-2 Introduction Gross domestic product is the statistic most often used to indicate the economy’s.
© 2009 Pearson Education, Inc. Publishing as Prentice Hall Principles of Economics 9e by Case, Fair and Oster 21 PART IV CONCEPTS AND PROBLEMS IN MACROECONOMICS.
5 CHAPTER Measuring GDP and Economic Growth.
Chapter 20 : The Measurement of National Income Copyright © 2014 Pearson Canada Inc.
Chapter 7 Chapter 7 Measuring Domestic Output, National Income & Price Level.
18 Prepared by: Fernando Quijano and Yvonn Quijano © 2004 Prentice Hall Business PublishingPrinciples of Economics, 7/eKarl Case, Ray Fair CHAPTER 21 Measuring.
24 Measuring Domestic Output and National Income McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 8 Measuring the Economy’s Performance. Copyright © 2008 Pearson Addison Wesley. All rights reserved. 8-2 Introduction Economists and financial.
© 2008 Pearson Addison-Wesley. All rights reserved 2-1 Chapter Outline National Income Accounting: The Measurement of Production, Income, and Expenditure.
Gross Domestic Product (GDP) What is Gross Domestic Product and how we measure it? Why is this measure important? What are the definitions of the major.
Taking the Nation’s Economic Pulse
ECN 202: Principles of Macroeconomics Nusrat Jahan Lecture-2 Measuring a Nation’s Income.
Prepared by: Jamal Husein C H A P T E R 10 © 2005 Prentice Hall Business PublishingSurvey of Economics, 2/eO’Sullivan & Sheffrin Measuring a Nation’s Production.
1 20 C H A P T E R © 2001 Prentice Hall Business PublishingEconomics: Principles and Tools, 2/eO’Sullivan & Sheffrin Measuring a Nation’s Production and.
Income Approach National Income Accounting. Two Methods of Calculating GDP There are two methods of calculating GDP: the expenditure approach and the.
7 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Measuring Domestic Output and National Income.
1 © ©1999 South-Western College Publishing PowerPoint Slides prepared by Ken Long Principles of Economics 2nd edition by Fred M Gottheil.
Eco 200 – Principles of Macroeconomics Chapter 7: National Income Accounting.
National Income Accounting How Do We Measure The Size and Health of an Economy?
Gross Domestic Product. National Income Accounting is a system used to measure the aggregate income and expenditures for a nation Gross Domestic Product.
Week 8 – Economics Theory National Income Accounting.
Measuring Domestic Output, National Income, and the Price Level CH 7 *
Measuring Domestic Output, National Income, and the Price Level 7 C H A P T E R.
When you have completed your study of this chapter, you will be able to C H A P T E R C H E C K L I S T Define GDP and explain why the value of production,
Chapter 7 Measuring Domestic Output and National Income Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Lecture 2. Gross National Product The market value of the goods and services produced within a given period by nationals (residents of a nation). It includes.
National Income Concept and Measurement
National Income Accounting Lecture2. What is National Income? National income is defined as the total value of all goods and services produced within.
24 Measuring Domestic Output and National Income McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 7 Measuring Domestic Output and National Income Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Chapter 11 Gross Domestic Product
Gross Domestic Product
4 GDP & National income accounting
Table 5.1 The Estimated Size of U.S. Manufactured Capital Stock
Gross Domestic Product
Measuring National Output and National Income
Presentation transcript:

Chapter 11 Practice Quiz Tutorial Gross Domestic Product ©2004 South-Western

1. The dollar value of all final goods and services produced within the borders of a nation is the a. GNP deflator. b. gross national product. c. net national product. d. gross domestic product. D. GDP is the most widely reported measure of a nation’s economic performance. GDP excludes production abroad by U.S. firms.

2. Based on the circular flow model, money flows from businesses to households in a. factor markets. b. product markets. c. neither factor nor product markets. d. both factor and product markets. A. Money flows from household to businesses in product markets. The reverse is true for factor markets.

3. The circular flow model does not include which of the following? a. The quantity of shoes in inventory on January 1. b. The total wages paid per month. c. The percentage of profits paid out as dividends each year. d. The total profits earned per year in the U.S. economy. A. The quantity of shoes in inventory is a stock at one point in time rather than a flow over a period of time.

4. The expenditure approach measures GDP by adding all the expenditures for final goods made by a. households. b. businesses. c. government. d. foreigners. e. all of the above. E. One method national income accountants use to calculate GDP is to add all spending for the four sectors of the economy during a period of time.

5. GDP is a less-than-perfect measure of the nation’s economic pulse because it a. excludes nonmarket transactions. b. does not measure the quality of goods and services. c. does not report illegal transactions. d. all of the above are true. D. GDP only measures legal market transactions and adjustments for quality changes are very difficult or impossible.

6. Subtracting an allowance for depreciation of fixed capital from gross domestic product yields a. real GDP. b. nominal GDP. c. personal income. d. national income. D. GDP includes an estimate of depreciation. National income is equal to GDP less depreciation.

7. Adding all incomes earned by households from the sale of resources yields a. intermediate goods. b. indirect business taxes. c. national income. d. personal income. C. Intermediate goods and indirect business taxes have nothing to do with adding household incomes. Personal income is the total income received by households. For example, PI includes transfer payments and NI does not.

8. Personal income equals disposable income plus a. personal savings. b. transfer payments. c. dividend payments. d. personal taxes. D. Disposable income is the amount of income that households actually have to spend or save after payment of personal taxes.

9. Disposal personal income a. is the income people spend for personal items such as homes and cars. b. includes transfer payments. c. excludes transfer payments. d. includes personal taxes. B. DPI equals PI minus personal taxes. Since PI includes transfer payments, DPI also includes transfer payments.

10. Which of the following statements is true? a. National income is total income earned by households, whereas personal income is total income received by households. b. Disposable personal income equals personal income minus personal taxes. c. The expenditures approach and the income approach yield the same GDP figure. d. all of the above are true. D. All of the above are true.

11. Gross domestic product data that reflect actual prices as they exist in a given year are expressed in terms of a. fixed dollars. b. current dollars. c. constant dollars. d. real dollars. B. Nominal GDP is also referred to as current dollar or money GDP and is not adjusted for inflation.

12. The GDP chain price index is a. widely reported in the news. b. broadly based. c. adjusted for government spending. d. a measure of changes in consumer prices. B. The GDP chain price index not only measures price changes of consumer goods, but also price changes of business investment, government consumption expenditures, exports and imports.

13. Which of the following statements is true? a. The inclusion of intermediate goods and services in GDP calculations would underestimate our nation’s production level. b. The expenditures approach sums the compensation of employees, rents, profits, net interest, and non-income expenses for depreciation and indirect business taxes. c. Real GDP has been adjusted for changes in the general level of prices due to inflation or deflation. d. Real GDP equals nominal GDP multiplied by the GDP deflator. C. The word real in front of any term means that the value has been adjusted for inflation.

END