3. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of cal GDP for Canada? Check all that apply. O The value of baby-sitting services, when the baby sitter is paid in cash and the transaction isn't reported to the government O Funds spent by city governments to renovate their buildings O The costs of overfishing and other overly intensive uses of resources O The leisure time they have When a Canadian company purchases and imports wood products from Brazil to use to build new houses, within Canada, this purchase increas

3. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of cal GDP for Canada? Check all that apply. O The value of baby-sitting services, when the baby sitter is paid in cash and the transaction isn't reported to the government O Funds spent by city governments to renovate their buildings O The costs of overfishing and other overly intensive uses of resources O The leisure time they have When a Canadian company purchases and imports wood products from Brazil to use to build new houses, within Canada, this purchase increas

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Calculate GDP using the information in the table below: SBillions Government purchases of goods 800 Services 500 Imports 200 Change in business inventories 40 Durable goods 300 Nondurable goods 600 Exports 50 Residential investment 200 Government purchases of services 200 Nonresidential investment 650 Select one: O a. 3650 O b. 3440 Oc. 3140 2900 e here to search
GDP measures: the value of production total expenditures income of factors production all the above 2. GDP does NOT include: re-sale of houses durable consumption spending consumption spending for services payment of WVU faculty salaries 3. Suppose that Inventories fall by $2 billion, Consumption increases by $8 billion, Welfare Payments decline by $3 billion, Export increases by $2 billion and Import also increases by $2 billion. Ceteris paribus! By how much should measured-GDP change? $6 billion $8 billion $11 billion $9 billion
6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. O The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government O The costs of air and water pollution O The variety of goods available to consumers O Federal government paychecks to soldiers When a U.S. company purchases and imports automotive parts from Canada to use to build cars within the United States, this purchase increases the net exports by the same amount. Therefore, the purchase of component of GDP while also in US GDP. automotive parts from Canada causes
Item Personal consumption expenditure Government expenditure on goods and services Net taxes Gross private domestic investment Imports of goods and services Exports of goods and services Millions of dollars 80 30 35 20 10 20 Use the information in the table above to calculate the value of net exports. O $10 million $30 million $0 -$10 million
QUESTION 18 If country A had a smaller underground economy than country B, and country A's citizens worked more hours per week than the citizens of country B, other things equal, then it is impossible to know which direction GDP comparisons between the countries would be biased as measures of the economic welfare of the two countries. b. it would not introduce any bias in using GDP to compare economic welfare between the countries. GDP comparisons between the countries would understate the economic welfare of country A compared to Od.B. GDP comparisons between the countries would overstate the economic welfare of country A compared to B.
Which of the following are included in the income approach to calculating GDP? ...... O A. corporate profits; proprietors' income; consumption expenditure O B. rental income; corporate profits; government expenditure OC. rental income; corporate profits; proprietors' income O D. proprietors' income; government expenditure; investment
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QUESTION 3 Not yet answered Marked out of 1.00 This question considers GDP in a country in a single year. Which of the following stasements are correct? Select one or more: O a. GDP can be measured by adding up the value of all production by all industries. Ob. GDP can be measured by adding up all factor incomes paid in an economy Oc. GDP can be measured by summing the total value added by all industries. O d. GDP in expenditure terms can be measured as the sum of C+I+G+X
Related to the Economics in Practice on p. 107: The value of the used goods sold on eBay from a U.S. seller to a U.S. buyer is Select one: O a. not counted in either U.S. GDP or GNP. Ob. counted in U.S. GNP but not GDP. O c. counted in both U.S. GDP and GNP. O d. counted in U.S. GDP but not GNP.
In calculating GDP, economists use the value of final goods and services because Select one: A. intermediate goods are imported from other countries. B. by using final goods and services, they avoid double counting. C. GDP is underestimated if intermediate goods are used instead. D. final goods and services do not depreciate. O E. final goods can be exported to other countries.
8. The table below shows the total population, GDP per capita at current prices and according to fixed price (constant) from 2018-2020 for country X. Year GDP percapita GDP percapita Total Population current price contant price (in RM million) (in RM million) 2018 174960 41920 27320 2019 178460 46110 29230 2020 182030 49800 30690 Calculate GDP at current price and GDP at constant price for each year in the table above. Calculate inflation rate and economic growth rates for 2019 and 2020. a. b.
7. Determine whether the following scenarios would increase, decrease or have no impact on potential GDP in the country of Torania: A. Technological improvements B. Productivity of workers in Torania decline C. Households across Torania see a decline in home prices, reducing household wealth 1. Decrease potential GDP ✓ 2. Increase potential GDP 3. No impact on potential GDP