2. Which of the following is NOT included in the calculation of GDP? a) Investment spending b) Government spending

6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The quality of goods available to consumers O The loss of enjoyment people incur when scenic land is converted to commercial use The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government O Federal government paychecks to soldiers When a U.S. company purchases and imports automotive parts from Canada to use to build cars within the United States, this purchase increases the net exports by the same amount. Therefore, the purchase component of GDP while also in US GDP. automotive parts from Canada causes

5. Which component of GDP includes spending on new structures and equipment?

Classify the type of expenditure in the following transactions.   Tuition paid by your parents is _______. A new office building is _______.     A. consumption expenditure; consumption expenditure   B. investment; investment   C. government expenditure; investment   D. consumption expenditure; investment

1. In the above case study, identify TWO factors that are responsible for the rise in Japan’s Gross Domestic Product (GDP)

The three ways of measuring Gross Domestic Product are the __________ approach, the ________ approach, and the __________ approach. 3   Select one: a. real GDP, nominal GDP, potential GDP b. income, expenditure, value-ad3ded c. expenditure, income, real GDP

1. Define Gross Domestic Product (GDP) and discuss how it is used as a measure of living standard and the limitations of its use.  2. What other indicators (list at least 3) can be used to supplement GDP as a measure of welfare?   3. What is the difference between a final good and an intermediate good ? Give relevant examples or each if possible

2. Which of the following will decline in US GDP according to national income accounting? a. An decrease in government financial assistance to families for groceries and food paid for by income tax revenue b. an increase in imports from China a drop in salaries paid to soldiers in the US military с. d. an old bridge collapses and is left un-repaired and untouched the entire year е. none of the above

1. Explain with your own words the definition of Gross Domestic Product. 2. How does the growth rate of real GDP contribute to an improved standard of living? 3. Use the following data to answer the question. The table lists some macroeconomic data for the United States in 2008. Item                                                    Billions of dollars Wages paid to labor                   8,000Consumption expenditure    10,000Net operating surplus               3,200Investment                                       2,000Government expenditure        2,800Net exports                                    –700Depreciation                                   1,800 3a) Calculate U.S. GDP in 2008.

7) Assume that a tire company sells 4 tires to an automobile company for $400, anothercompany sells a compact disc player for $500, and the automobile company puts all of theseitems in or on a car that it sells for $20,000. In this case, how much GDP has been generated?a. $20,000.b. $20,000 less the automobile company’s profit on the car.c. $20,900.d. $20,900 less the profits of all three companies on the items that they sold.