ADMS 1000 Lecture 8: ADMS1000 gdp
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7. The difference between nominal GDP and real GDP is that nominal GDP:
A. |
measures a country's production of final goods and services at current market prices, whereas real GDP measures a country's production of final goods and services at the same prices in all years. |
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B. |
is measured in dollar terms, whereas real GDP is measured in terms of numbers of goods and services produced |
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C. |
measures the total value of only final goods and services, whereas real GDP measures the value of all goods and services, both intermediate and final |
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D. |
measures a country's production of final goods and services at fixed prices, whereas real GDP measures a country's production of all final goods and services at current market prices |
Real GDP per capita is calculated as the total
A. | real GDP in a given year. | |
B. | real GDP divided by the nominal GDP. | |
C. | real GDP divided by the population. | |
D. | nominal GDP divided by the population |
Table: Small Town GDP
Town | Real GDP (U.S. Dollar) | Population |
A | 4,859,307 | 250 |
B | 10,000,050 | 175 |
C | 6,000,000 | 320 |
D | 3,549,289 | 90 |
(Table: Small Town GDP) Which of the four towns in this table has the highest standard of living?
A. | Town A | |
B. | Town B | |
C. | Town C | |
D. | Town D |
(Table: GDP Table)
Table: GDP Table
Product | Price | Quantity |
Shovels | $20 | 50 |
Books | 50 | 100 |
Tomatoes | 1 | 500 |
Pizzas | 10 | 120 |
Suppose an economy produces only the four goods listed in this table. All of the country's tomatoes are used in the production of pizzas and all of its shovels are purchased by foreign firms that produce landscaping services only in their country. What is the value of GDP in this country?
A. | $6,200 | |
B. | $7,700 | |
C. | $6,700 | |
D. | $7,200 |
Which of the following services does NOT count towards GDP?
A. | You paint your own two-story garage. | |
B. | A doctor treats a patient in a hospital. | |
C. | Your real estate agent sells your house for you. | |
D. | An economics professor educates her students in a classroom. |
GDP can increase at a faster rate than real GDP:
a. only if there is a decline in the price level. | |||||||||||||||||||||
b. only if the unemployment rate is increasing. | |||||||||||||||||||||
c. only if the value of the dollar is stable. | |||||||||||||||||||||
d. only if the population is growing. | |||||||||||||||||||||
e. only if there is inflation. If our output of goods and services rises, then:
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