Macroeconomics lesson 5

In the simple circular-flow diagram, with households and firms, GDP can be computed as the:

• profits received by households.

• income received by households in the form of wages.

• payments made by firms for labor.

• income received by households, in the form of wages, rent and profit.

What was country Krugeveaux's investment in 2019?

• $7,603

• $3,676

• $1,991

• $1,988

International data on GDP and socioeconomic variables

• leave no doubt that a nation's GDP is closely associated with its citizens' standard of living.

• suggest that poor nations actually might enjoy a higher standard of living than do rich nations.

• are inconclusive about the relationship between GDP and the economic well-being of citizens.

• ndicate that there are few real differences in living standards around the world, in spite of the large differences in GDP between nations

The percentage change in the price level from one period to another is called the

• GDP deflator

• growth rate

• inflation rate

• unemployment rate

The market value of all final goods and services produced within Mindalion in 2019 is

• $198.

• $200.

• $216.

• $202.

The income that households and noncorporate businesses receive is called:

• disposable personal income.

• net national product.

• national income.

• personal income.

Micheal, a U.S. citizen, travels to Jamaica and buys a newly manufactured motorcycle made there. His purchase is included in:

• both Jamaica's GDP and U.S. GDP.

• U.S. GDP, but it is not included in Jamaica's GDP.

• neither Jamaica's GDP nor U.S. GDP.

• Jamaica's GDP, but it is not included in U.S. GDP.

Many things that society values, such as good health, high-quality education, enjoyable recreation opportunities, and desirable moral attributes of the population, are not measured as part of GDP. It follows that:

• GDP is still a useful measure of society's welfare because it measures a nation's ability to purchase the inputs that can be used to help produce the things that contribute to welfare.

• GDP is still the best measure of society's welfare because these other values cannot actually be measured.

• GDP is not a useful measure of society's welfare.

• GDP is still a useful measure of society's welfare because providing these other attributes is the responsibility of government.

U.S. GDP and U.S. GNP are related as follows:

• GNP = GDP + Income earned by foreigners in the U.S. – Income earned by U.S. citizens abroad.

• GNP = GDP – Income earned by foreigners in the U.S. + Income earned by U.S. citizens abroad.

• GNP = GDP – Value of exported goods + Value of imported goods.

• GNP = GDP + Value of exported goods – Value of imported goods.

A company sells steel to a scooter company for $150. The scooter company uses the steel to produce a scooter, which it sells for $290. Taken together, these two transactions contribute

• $290 to GDP.

• $150 to GDP.

• $140 to GDP.