revision questions chapter 20 pt4

Question 1

if a larger fraction of the adult population is working, household production…

Answer 1

is not counted in real GDP decreases

Question 2

economists distinguish real from nominal GDP to

Answer 2

determine weather real production has changed

Question 3

if the GDP deflator is biased by quality changes, the result is that

Answer 3

real GDP is understated

Question 4

national savings =

Answer 4

private savings + government spending

Question 5

If we compare the U.K. GDP and the Chinese GDP

Answer 5

China’s GDP per person is less than GDP per person in the United Kingdom.

Question 6

what is included in “compensation of employees” part of the income approach to measuring GDP?

Answer 6

I. Wages and salaries.
II. Pension fund contributions.
III. social security contributions.

Question 7

which of the following is a flow variable

A. Gross domestic product.
B. Capital.
C. The money in your pocket.
D. Wealth.

Answer 7

A. GDP

Question 8

Goods that are produced this year, stored in inventories, and then sold to consumers next year

Answer 8

count in only this years GDP

Question 9

In the calculation of GDP by the expenditure approach, exports from the United Kingdom must be…

Answer 9

added

Question 10

The implicit GDP deflator=

Answer 10

nominal GDP / real GDP