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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.


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Paramjeet Chawla
Paramjeet ChawlaLv8
28 Sep 2019

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Related questions

A. A Chinese restaurant buys 100 cups of rice for a total of $10; they buy soy, fish and oyster sauces for a total of $20; they buy assorted vegetables for $40. They create 50 meals with these ingredients and sell each one for $5. How much does this process contribute to GDP? $70 $180 $250 $200 A country aims to double real GDP per capita in the next 10 years. This means that on average real GDP per capita must grow at ____ per year

  1.  2%
  2. 4%
  3. 7%
  4. 10%

B. A country aims to double real GDP per capita in the next 10 years. If the rate of population growth in the country is 1% per year then this means that real GDP must grow at ____ per year.

  1. 5%
  2. 8%
  3. 11%
  4. 3%

C. A country wants its real GDP per capita to grow at a rate of 2.5% per year. If the rate of population growth in the country is 1% per year and the inflation rate is 2% per year then this means that nominal GDP must grow at ____ per year.

  1. 5.5%
  2. 2.5%
  3. 4.5%
  4. 3.5%

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:

a. real GDP definitely rose.
b. real GDP definitely fell.
c. GDP definitely rose.

d. GDP definitely stayed the same.

Assume that from 2007 to 2009 the U.S. economy experiences inflation. Also, assume that GDP remains constant from 2007 to 2009. Therefore:

a. real GDP rises.
b. real GDP falls.
c. there is no change in real GDP.

d. no conclusion can be reached as to whether real GDP rises, falls, or remains the same.

Which of the following statements is true?

a. GDP is greater than national income, which is greater than NDP.
b. Government spending is the largest sector of GDP.
c. A Social Security check sent to a retiree is counted as part of GDP.

d. The purchase of a new factory is counted in the investment sector of GDP.

The GDP is the value of all final goods and services produced:

a. within the nations boundaries.
b. by domestically owned companies.
c. by citizens of the country.

d. by domestically controlled companies.

National Income is about _____ percent of GDP.

a. 25
b. 45
c. 65
d. 85
e. 100

Consider a small open economy in which aggregate expenditures, AE, is the sum of consumption spending by households, investment spending by firms, government expenditures and net exports. You may assume that net exports are independent of real GDP and taxes are lump‐sum. The numbers in the table below are in billions.

Real GDP Consumption Investment Gov't Expend. Net Exports Taxes Aggregate Expenditures
1000 1430 120 50 -100 160 A
2000 B 120 50 -100 160 2250
3000 2930 120 50 -100 160 3000
4000 3680 120 50 -100 160 3750
5000 4430 120 50 -100 160 4500

a. (4 pts) For the table below, calculate the missing values, A and B. b. (2 pts) From the table above, what kind of situation is the country in with regards to the trade balance (i.e. do we have a trade surplus or deficit)? What kind of situation is the country in with regards to the domestic balance (i.e. is the government running a deficit or surplus)? c. (4 pts) Use the table above to calculate the slope of the AE curve. [Hint: Recall that the slope of the AE curve is the additional increase in aggregate expenditures arising from an increase in GDP.] d. (4 pts) Recall that the Aggregate Expenditure function is written as: AE = AE0 + (slope of AE) *Y where AE0 is Autonomous Expenditures. Use the table in part (a) and your answer to part (c) above to calculate Autonomous Expenditure AE0. [Hint: Calculate induced expenditures for any given level of GDP, and use your answer to figure out AE0] e. (2 pts) In the table above, what is the value of real GDP in equilibrium? f. (4 pts) Suppose that the government decides to spend 500 billion more. By calculating the multiplier (or any other way), calculate the value of the new equilibrium value of real GDP!

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