Consider a small country producing only two commodities (coffee beans and corn).
ID: 1182635 • Letter: C
Question
Consider a small country producing only two commodities (coffee beans and corn). In 2008, the country produced 500 pounds of coffee at $12 per pound and 600 bushels of corn at $6 per bushel.
Assuming the price level in the economy remains same while the output of both these products increase by 10 percent in 2009, calculate the value of real GDP in this country for the year 2009?
The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation) for the years 1995 and 2003.
Calculate the nominal GDP for 1995.
The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation) for the years 1995 and 2003.
Calculate the nominal GDP for 2003.
The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation) for the years 1995 and 2003.
What is the constant-dollar real GDP growth from 1995 to 2003 using 2003 as the base year?
The table given below reports the price of soda over four consecutive years.
Compute the price index for the base year.
The table given below reports the price of soda over four consecutive years.
Compute the price index for the third year.
If nominal GDP of a country increased and real GDP remained unchanged in a particular year, which of the following is most likely to have taken place? A)Output increased and the price level increased.B)Output increased and the price level decreased.
C)Output remained contant and the price level increased.
D)Output decreased and the price level decreased.
E)Output increased and the price level remained constant.
If both real GDP and nominal GDP of a country increased at the same rate in a particular year, which of the following is most likely to have taken place? A)Output increased and the price level increased.
B)Output increased and the price level decreased.
C)Output decreased and the price level increased.
D)Output decreased and the price level decreased.
E)Output increased and the price level remained constant.
Consider a small country producing only two commodities (coffee beans and corn). In 2008, the country produced 500 pounds of coffee at $12 per pound and 600 bushels of corn at $6 per bushel.
Assuming the price level in the economy remains same while the output of both these products increase by 10 percent in 2009, calculate the value of real GDP in this country for the year 2009?
A)$1,056B)$6,900
C)$9,600
D)$10,560
E)$10, 960
Consider a small country producing only two commodities (coffee beans and corn). In 2008, the country produced 500 pounds of coffee at $12 per pound and 600 bushels of corn at $6 per bushel. Assuming that the output of these two commodities remains constant, while the price of each rises by 10 percent in 2009, compute the value of real GDP in 2009. A)$6,560
B)$8,400
C)$9,600
D)$10,560
E)$12,000
Which of the following industrial countries experienced a relatively slower growth of real GDP in the latter half of the 1990s? A)Canada
B)United States
C)Italy
D)France
E)Japan
The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation) for the years 1995 and 2003.
Price per Unit Quantity Production 1995 2003 1995 2003 Computers $2,000 $1,600 100 100 Calculators $60 $70 900 900Calculate the nominal GDP for 1995.
A)$110,000B)$223,000
C)$254,000
D)$448,000
E)$520,000
The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation) for the years 1995 and 2003.
Price per Unit Quantity Production 1995 2003 1995 2003 Computers $2,000 $1,600 100 100 Calculators $60 $70 900 900Calculate the nominal GDP for 2003.
A)$223,000B)$254,000
C)$376,000
D)$448,000
E)$520,000
The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation) for the years 1995 and 2003.
Price per Unit Quantity Production 1995 2003 1995 2003 Computers $2,000 $1,600 100 100 Calculators $60 $70 900 900What is the constant-dollar real GDP growth from 1995 to 2003 using 2003 as the base year?
A)-75 percentB)zero percent
C)14 percent
D)50 percent
E)100 percent
Suppose the price index is 100 in the base year and the price of a pound of oranges in that year is $1.96. Now, if the price index changes to 105 in the following year, how much would a pound of oranges cost? A)$0.25
B)$1.50
C)$1.96
D)$2.06
E)$2.45
Suppose the current price of DVDs is $16, while its base-year price is $11.50. The value of the price index for the current year is approximately: A)25
B)39
C)139
D)160
E)172
The table given below reports the price of soda over four consecutive years.
Year Soda Price 1 (base year) $0.30 2 $0.45 3 $0.55 4 $0.65Compute the price index for the base year.
A)30B)80
C)100
D)120
E)130
The table given below reports the price of soda over four consecutive years.
Year Soda Price 1 (base year) $0.30 2 $0.45 3 $0.55 4 $0.65Compute the price index for the third year.
A)100B)118
C)130
D)150
E)183
National income accounting fills in the dollar values in the circular flow. A)True
B)False
GDP is based on the market value of goods and services produced in an economy and not on the value of only final goods and services. A)True
B)False
The services of a husband or wife as a homemaker and cash gains from a lottery are included in the calculation of gross domestic product. A)True
B)False
The sale of live cattle to a slaughterhouse constitutes a final transaction that is counted as part of the gross domestic product. A)True
B)False
The value added approach involves adding up the value of the final product and the value of intermediate goods used in the production process. A)True
B)False
According to the expenditures approach, gross domestic product represents the sum of consumption spending, government spending, net exports, and net investment. A)True
B)False
Other things remaining unchanged, a decline in imports is associated with an increase in gross domestic product. A)True
B)False
Depreciation must be subtracted from the calculation of gross domestic product. A)True
B)False
Gross national product in terms of the income method is equal to national income plus indirect business taxes minus the capital consumption allowance. A)True
B)False
The output produced by domestically owned firms in foreign countries is included in the U.S. GDP but not in the U.S. GNP. A)True
B)False
When indirect business taxes are subtracted from GDP we get net national product of a nation. A)True
B)False
FICA taxes and corporate retained earnings are subtracted from national income when personal income is computed. A)True
B)False
To arrive at a more accurate measure of real output changes in an economy, nominal GDP figures should be adjusted for inflation. A)True
B)False
A price index is a measure of the average level of prices in an economy. A)True
B)False
The consumer price index [CPI] is considered the best measure of the cost of living of individuals in a country. A)True
B)False
The consumer price index [CPI] measures price changes at an earlier stage of production than the producer price index [PPI], hence, increases in the CPI are usually followed by increases in the PPI. A)True
B)False
Since there are smaller fluctuations in the equilibrium prices of final goods than in the prices of intermediate goods, the producer price index is more volatile than the consumer price index. A)True
B)False
Explanation / Answer
first of all i request you not to post so many questions together
still i will answer them this time
proceed as
Consider a small country producing only two commodities (coffee beans and corn). In 2008, the country produced 500 pounds of coffee at $12 per pound and 600 bushels of corn at $6 per bushel. Assuming that the output of these two commodities remains constant, while the price of each rises by 10 percent in 2009, compute the value of real GDP in 2009.
D)$10,560
Which of the following industrial countries experienced a relatively slower growth of real GDP in the latter half of the 1990s?
B)United States
If nominal GDP of a country increased and real GDP remained unchanged in a particular year, which of the following is most likely to have taken place?
A)Output increased and the price level increased.
(There was non zero inflation)
If both real GDP and nominal GDP of a country increased at the same rate in a particular year, which of the following is most likely to have taken place?
E)Output increased and the price level remained constant.
(Zero inflation)
Consider a small country producing only two commodities (coffee beans and corn). In 2008, the country produced 500 pounds of coffee at $12 per pound and 600 bushels of corn at $6 per bushel.
Assuming the price level in the economy remains same while the output of both these products increase by 10 percent in 2009, calculate the value of real GDP in this country for the year 2009?
D)$10,560 ((500*12 + 600*6) * 1.10)
The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation) for the years 1995 and 2003.
Price per Unit Quantity
Production 1995 2003 1995 2003
Computers $2,000 $1,600 100 100
Calculators $60 $70 900 900
Calculate the nominal GDP for 1995.
C)$254,000
The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation) for the years 1995 and 2003.
Price per Unit Quantity
Production 1995 2003 1995 2003
Computers $2,000 $1,600 100 100
Calculators $60 $70 900 900
Calculate the nominal GDP for 2003.
A)$223,000(1600*100+70*900)
The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation) for the years 1995 and 2003.
Price per Unit Quantity
Production 1995 2003 1995 2003
Computers $2,000 $1,600 100 100
Calculators $60 $70 900 900
What is the constant-dollar real GDP growth from 1995 to 2003 using 2003 as the base year?
C)14 percent
Suppose the price index is 100 in the base year and the price of a pound of oranges in that year is $1.96. Now, if the price index changes to 105 in the following year, how much would a pound of oranges cost?
D)$2.06(1.96*1.05)
Suppose the current price of DVDs is $16, while its base-year price is $11.50. The value of the price index for the current year is approximately:
C)139(16/11.5*100)
The table given below reports the price of soda over four consecutive years.
Year Soda Price
1 (base year) $0.30
2 $0.45
3 $0.55
4 $0.65
Compute the price index for the base year.
C)100 (base year price index is 100 always)
The table given below reports the price of soda over four consecutive years.
Year Soda Price
1 (base year) $0.30
2 $0.45
3 $0.55
4 $0.65
Compute the price index for the third year.
E)183(0.55/0.3*100)
National income accounting fills in the dollar values in the circular flow.
A)True
GDP is based on the market value of goods and services produced in an economy and not on the value of only final goods and services.
B)False (Value of final goods and services are onlly accounted)
The services of a husband or wife as a homemaker and cash gains from a lottery are included in the calculation of gross domestic product
B)False
The sale of live cattle to a slaughterhouse constitutes a final transaction that is counted as part of the gross domestic product.
A)True
The value added approach involves adding up the value of the final product and the value of intermediate goods used in the production process.
B)False (only final)
According to the expenditures approach, gross domestic product represents the sum of consumption spending, government spending, net exports, and net investment.
A)True
Other things remaining unchanged, a decline in imports is associated with an increase in gross domestic product.
A)True
Depreciation must be subtracted from the calculation of gross domestic product.
A)True
Gross national product in terms of the income method is equal to national income plus indirect business taxes minus the capital consumption allowance.
A)True
The output produced by domestically owned firms in foreign countries is included in the U.S. GDP but not in the U.S. GNP.
B)False
When indirect business taxes are subtracted from GDP we get net national product of a nation.
A)True
FICA taxes and corporate retained earnings are subtracted from national income when personal income is computed.
A)True
To arrive at a more accurate measure of real output changes in an economy, nominal GDP figures should be adjusted for inflation.
A)True
A price index is a measure of the average level of prices in an economy.
A)True
The consumer price index [CPI] measures price changes at an earlier stage of production than the producer price index [PPI], hence, increases in the CPI are usually followed by increases in the PPI.
B)False (it is the otherway round)
Since there are smaller fluctuations in the equilibrium prices of final goods than in the prices of intermediate goods, the producer price index is more volatile than the consumer price index.
A)True
The consumer price index [CPI] is considered the best measure of the cost of living of individuals in a country.
A)True