ECON 320 CH 2

All of the following are measures of GDP except the total:
value of all final production.
expenditures of all businesses in the economy.
income from all production in the economy.
expenditures on all final goods and services produced.

expenditures of all businesses in the economy.

When bread is baked but put away for later sale, this is called:

investment in inventory

An example of an imputed value in the GDP is the:

housing services enjoyed by homeowners.

Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges
cost $1 in 2002 and $1.50 in 2009. If 4 apples were produced in 2002 and
5 in 2009, whereas 3 oranges were produced in 2002 and 4 in 2009, then
real GDP (in 2002 prices) in 2009 was

$6.50

If GDP (measured in billions of current dollars) is $5,465, consumption is
$3,657, investment is $741, and net exports are –$1,910, then
government purchases are:

$2,977

In the national income accounts, the purchase of durables, nondurables, and services by households are classified as:

consumption

Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $0.50 in 2009. If 10 apples and 5 oranges were purchased in 2002, and 5 apples and 10 oranges were purchased in 2009, the CPI for 2009, using 2002 as the base year, is:

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An increase in the price of imported goods will show up in:

the CPI but not in the GDP deflator

Assume that the adult population of the United States is 191.6 million, total employment is 117.6 million, and 9.4 million are unemployed. Then the unemployment rate, as normally computed, is approximately ______ percent.

7.4

A woman marries her butler. Before they were married, she paid him $60,000 per year. He continues to wait on her as before (but as a husband rather than as a wage earner). She earns $1,000,000 per year both before and after her marriage. If GDP were changed so that it truly measured the sum of all final economic activity, the marriage would:

leave GDP unchanged