Which of the following are included in this year’s GDP? Explain your answer in each case. a. The services of a commercial painter in painting the family home. b. An auto dealer’s sale of a new car to a nonbusiness customer. c. The money received by Smith when she sells her biology textbook to a used-book buyer. d. The publication and sale of a
· Which of the following are included in this year's GDP? Explain your answer in each situation. a. Interest on an AT&T bond. b. Social security payments received by a retired factory worker. c. The services of a painter in painting the family home (state whether or not the painter is a family member or an outside contractor). d. The income of a
· 12-8 Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $10. Finally, assume that in 2004 the price per bucket of chicken was $16 and that 22,000 buckets were purchased. Determine real GDP for 1984 and 1996, in 1984 prices.
Business; Economics; Economics questions and answers; Which of the following would be included in GDP for the United States? A U.S. professor taking a year off to teach at the London School of Economics A tire manufacturer making and selling tires to Ford to be used in their new cars The production of Hondas, a Japanese car company, producing cars in Marietta, Ohio.
Which of the following would be included in this year's GDP? consumption, investment, government consumption and gross investment, and net exports.
GDP is measured by taking the quantities of all goods and services produced, multiplying them by their prices, and summing the total. GDP can be measured either by the sum of what is purchased in the economy or by what is produced. Demand can be divided into consumption, investment, government, exports, and imports.
When using the expenditures approach to calculating GDP the components are consumption, investment, government spending, exports, and imports.
What are the 4 main components of GDP? There are four main components of GDP; consumption, investment, government spending, and exports. Consumption is the largest component of GDP and is a measure of all spending by households on goods and services.
Which of the following is included in GDP? the value of goods produced domestically and sold abroad.
Only newly produced goods - including those that increase inventories - are counted in GDP. Sales of used goods and sales from inventories of goods that were produced in previous years are excluded. Only goods that are produced and sold legally, in addition, are included within our GDP.
There are four main aggregate expenditures that go into calculating GDP: consumption by households, investment by businesses, government spending on goods and services, and net exports, which are equal to exports minus imports of goods and services.
The five main components of the GDP are: (private) consumption, fixed investment, change in inventories, government purchases (i.e. government consumption), and net exports. Traditionally, the U.S. economy's average growth rate has been between 2.5% and 3.0%.
GDP data does not include the production of nonmarket goods, the underground economy, production effects on the environment, or the value placed on leisure time.
If, for example, Country B produced in one year 5 bananas each worth $1 and 5 backrubs each worth $6, then the GDP would be $35. If in the next year the price of bananas jumps to $2 and the quantities produced remain the same, then the GDP of Country B would be $40.
The largest component of U.S. GDP is value added in: business production.
Gross domestic productGross domestic product (GDP) is the most commonly used measure for the size of an economy. GDP can be compiled for a country, a region (such as Tuscany in Italy or Burgundy in France), or for several countries combined, as in the case of the European Union (EU).
It is calculated by computing total spending and total income; the larger of the two figures is count ed as GDP.
If a firm's inventory decreases, the GDP counts the net decrease as a reduction in investment.
The state government funds a state university.
GDP reflects many things; however, it does not reflect the depletion of natural resources, leisure, or many things we as individuals do for ourselves.
Including the value of ....... goods along with the value of final goods in the calculation of GDP would amount to multiple counting of goods and distort GDP.
GDP is..... intermediate. Goods and services that are used up in the production of final goods are called ..... goods. -Tracks the long-run of the economy. -Enables formulation of policies to improve or safeguard the economy's health. -assesses the health of the economy.
Foreign goods or .... purchased by consumers, firms, or the government should be subtracted from GDP because the goods were not produced in the United States. nothing is being produced in return for the payment. Transfer payments are excluded from government purchases in GDP accounting because.
secondhand goods. The sale of ..... is excluded from the calculation of GDP because they contribute nothing to current production. purchases. Government ......., officially labeled "government consumption expenditures and gross investment," include all federal, state, and local government outlays on final goods.
Nominal GDP measures the value of all goods and services....
A nation's gross domestic product (GDP) -non-market activities. -the underground economy. -leisure time. -improved product quality. As a measurement of economic output and the nation's wealth, GDP fails to account for.... -wages and salaries. -payments by employers into private pension plans for employees.
The primary measure of the economy's performance is its annual total output of goods and services, which is called its.....
d) the GDP deflator is the sum of the consumer price index and the wholesale price index.
c) the GDP deflator is always less than the consumer price index, and therefore, it is a more stable index.