GDP includes only the market value of (intermediate_ final) goods in the calculation because that value includes the value of the production of all intermediate goods. To include the value of final goods and all intermediate goods would lead to (exact, under-, over-) counting of the size of GDP. Value added is the market value of a firm's output (plus, minus, multiplied by, divided by) the value of inputs bought from other firms. Summing the value of the contribution made by each firm at each stage of the production process enables economists to determine GDP. The value of output produced at an American-owned factory in the U.S. is counted as GDP? (Yes, no) The value of output produced at a foreign-owned factory in the U.S.? (Yes, no) €Circle a correct answer GDP represents all domestic production within the border of the U.S. (yes, no)

GDP includes only the market value of (intermediate_ final) goods in the calculation because that value includes the value of the production of all intermediate goods. To include the value of final goods and all intermediate goods would lead to (exact, under-, over-) counting of the size of GDP. Value added is the market value of a firm's output (plus, minus, multiplied by, divided by) the value of inputs bought from other firms. Summing the value of the contribution made by each firm at each stage of the production process enables economists to determine GDP. The value of output produced at an American-owned factory in the U.S. is counted as GDP? (Yes, no) The value of output produced at a foreign-owned factory in the U.S.? (Yes, no) €Circle a correct answer GDP represents all domestic production within the border of the U.S. (yes, no)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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BMW, a German owned company produces some of its cars (Mini Coopers) in South Carolina. In 2018 BMW made $32 million revenue from sales to Americans, $5 million from sales to Greeks and $4 million worth of automobiles added to BMW’s inventory. How much of these contribute to the US GDP for 2018? Group of answer choices $36 million. $41 million $37 million $28 million
GDP deflator (GDP deflator for year t = nominal GDP for year t divided by the real GDP for year t) is a price index representing the overall price level in the economy. The CPI (the consumer price index) is also a price index representing the overall price level in the economy. Which of the below is best explains why they are different? The GDP deflator does not reflect the prices of exported goods and services, whereas the consumer price index does not reflect the prices of the imported goods and services. The GDP deflator reflects the prices of goods and services bought by producers, whereas the consumer price index reflects the prices of goods and services bought by consumers. The GDP deflator reflects the prices of intermediate goods and services bought by producers, whereas the consumer price index reflects the prices of goods and services bought by consumers.
Using the formula GDP = National Income + Depreciation + (indirect taxes – subsidies) + Net factor payments to the rest of the world, calculate GDP using the Income Approach. (all figures are in billions of dollars):
Which of the following is least likely to be included in calculating GDP by the sum-of-value-added method? a. The cash paid by a customer to purchase bread from the retailer b. Money spent by a construction worker on materials to build. c. Rental costs incurred by a retailer in storing goods for sale d. The money spent by a farmer in transporting the wheat to the miller
Which of the following is NOT included in 2004's GDP? Group of answer choices The profit earned in 2004 from selling a stock that you purchased in 2001. The value of a personal computer produced in 2004 in the United States. The value of a car produced in 2004 in the United States and exported to England. The commission earned by an employment counselor in 2004 when she locates a job for a client.
During 2009, the leather company produced enough leather for 20 couches. The couch manufacturing company bought 80% of that leather for $16,000 and promised to buy the remaining 20% for $4,000 in 2010. The couch manufacturing company produced 16 couches during 2009 and sold each one during that year for $3,000. What was the contribution to GDP for 2009? Select one: a. $52,000 a. $52,000 b. $64,000 b. $64,000 c. $48,000 c. $48,000 d. $68,000
Which approach to calculating GDP focuses on summing the value added at each stage of production? a) Expenditure approach b) Income approach c) Output approach d) Value - added approach
To calculate GDP from the income side, one must add together wages, a) government income, interest, and profits. b) consumption and depreciation. c) interest, rent, depreciation, profits and indirect taxes net of subsidies. d) investment, rent, depreciation, profits and indirect taxes net of subsidies. e) net exports, depreciation, and profits.
Computation of GDP by the expenditures method would include the purchase of A. fertilizer by a farmer b. government bonds by a commercial bank. c. cement from a construction company d. Land by the U.S department of interior.
Describe the relationship among GDP, net domestic product, national income, personal income and disposal income
Which of the following activities of a computer manufacturer during the current year are included in this year’s measure of GDP? The manufacturer produces a chip in June, uses it as a component in a computer in August, and sells the computer to a customer in November. A retail outlet of the firm sells a computer completely built during the current year. c. A marketing arm of the company receives fee income during the current year when a buyer of one of its computers elects to use the computer manufacturer as her Internet service provider
In the system of GDP accounting, which of the following is counted towards government purchases? All of the answer options are correct. The city of Paris, Texas pays a private firm to recycle plastic waste in that city. The state of Oregon pays the salary of a public school teacher of Spanish. The federal government pays the salary of an Air Force officer.