Problem 1
Tina walks into Ted's sporting goods store and buys a punching bag for 100 dollars . That 100 dollars payment counts as _____ for Tina and _____ for Ted. a. Income; expenditure. b. Value added; multiple counting. c. Expenditure; income. d. Rents; profits.
Problem 2
Which of the following transactions would count in GDP? Select one or more answers from the choices shown.'a. Kerry buys a new sweater to wear this winter. b. Patricia receives a Social Security check. c. Roberto gives his daughter 50 dollars for her birthday. d. Latika sells 1,000 dollars of General Electric stock. e. Karen buys a new car. f. Amy buys a used car.
Problem 3
A small economy starts the year with 1 million dollars in capital. During the course of the year, gross investment is 150,000 dollars and depreciation is 50,000 dollars . How big is the economy's stock of capital at the end of the year? a. $$ 1,150,000\( b. $$ 1,100,000\) c. $$ 1,000,000\( d. $$ 850,000\) e. $$ 800,000$
Problem 5
Suppose that California imposes a sales tax of 10 percent on all goods and services. A Californian named Ralph then goes into a home improvement store in the state capital of Sacramento and buys a leaf blower that is priced at 200 dollars . With the 10 percent sales tax, his total comes to 220 dollars . How much of the 220 dollars paid by Ralph will be counted in the national income and product accounts as private income (employee compensation, rents, interest, proprietor's income, and corporate profits)? a. $$ 220\( b. $$ 200\) c. $$ 180$ d. None of the above.
Problem 6
Suppose GDP is 16 trillion dollars , with 10 trillion dollars coming from consumption, 2 trillion dollars coming from gross investment, 3.5 trillion dollars coming from government expenditures, and 500 billion dollars coming from net exports. Also suppose that across the whole economy, depreciation (consumption of fixed capital) totals 1 trillion dollars . From these figures, we see that net domestic product equals: a. $$ 17.0\( trillion. b. $$ 16.0\) trillion. c. $$ 15.5$ trillion. d. None of the above.
Problem 7
Suppose GDP is 15 trillion dollars , with 8 trillion coming from consumption, 2.5 trillion dollars coming from gross investment, 3.5 trillion dollars coming from government expenditures, and 1 trillion dollars coming from net exports. Also suppose that across the whole economy, personal income is 12 trillion dollars . If the government collects 1.5 trillion dollars in personal taxes, then disposable income will be: a. $$ 13.5\( trillion. b. $$ 12.0\) trillion. c. 10.5 trillion. d. None of the above.
Problem 8
Suppose that this year's nominal GDP is 16 trillion dollars . To account for the effects of inflation, we construct a price-level index in which an index value of 100 represents the price level 5 years ago. Using that index, we find that this year's real GDP is 15 trillion dollars . Given those numbers, we can conclude that the current value of the index is: \(L O 27.5\) a. Higher than \(100 .\) b. Lower than \(100 .\) c. Still 100
Problem 9
Which of the following items will be included in official U.S. GDP statistics?Select one or more answers from the choices shown. a. Revenue generated by illegal marijuana growers in Oregon. b. Money spent to clean up a local toxic waste site in Ohio. c. Revenue generated by legal medical marjjuana sales in California. d. The dollar value of the annoyance felt by local citizens living near a noisy airport in Georgia. e. Robert paying Ted for a haircut in Chicago. f. Emily and Rhonda trading an hour of dance lessons for a haircut in Dallas.
Problem 10
Suppose GDP is 5.0 trillion dollars , resource extraction is 0.5 trillion dollras , production is 1.5 trillion dollars, and distribution is $$ 1.0 trillion. a. How big is GO? b. How big is GO minus GDP?
