Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 27, Problem 2RQ
To determine
Components of GDP .
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Students have asked these similar questions
In 2018, GM produced 30 cars, of which 25 were sold in
2018 and 5 were added to its inventories. The market
value of the cars in 2018 was $10,000 per unit. What is
the value of GM's output that will be included in the 2018
GDP?
O $250,000
O $50,000
O $300,000
O $350,000
Refer to the Table. Assume that this economy produces only two
goods Good X and Good Y. The value for this economy's nominal
GDP in year 3 is
Year 1
Good X 60
Good Y 100
OA) $204.
OB) $222.
OC) $250.
OD) $270.
Production
Year 2
80
110
Year 3
100
130
Year 1
$1.00
$0.80
Prices
Year 2
$1.00
$0.90
Year 3
$1.40
$1.00
In a small economy, consumption spending is $7,500,
government purchases are $2,200, gross investment is
$500, exports are $2,100, and imports are $3,000. What is
gross domestic product?
$9,300
O $15,300
O $11,100
O $12,300
Chapter 27 Solutions
Economics (Irwin Economics)
Ch. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Prob. 3DQCh. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Prob. 6DQCh. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Prob. 10DQ
Ch. 27 - Prob. 11DQCh. 27 - Prob. 12DQCh. 27 - Prob. 13DQCh. 27 - Prob. 14DQCh. 27 - Prob. 1RQCh. 27 - Prob. 2RQCh. 27 - Prob. 3RQCh. 27 - Prob. 4RQCh. 27 - Prob. 5RQCh. 27 - Prob. 6RQCh. 27 - Prob. 7RQCh. 27 - Prob. 8RQCh. 27 - Prob. 9RQCh. 27 - Prob. 10RQCh. 27 - Prob. 1PCh. 27 - Prob. 2PCh. 27 - Prob. 3PCh. 27 - Prob. 4PCh. 27 - Prob. 5PCh. 27 - Prob. 6PCh. 27 - Prob. 7PCh. 27 - Prob. 8P
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- 1. dix Suppose the country produces only two goods: beef and wheat. The table below summarizes the quantities of each good produced and the corresponding prices in every year since 2005: Beef Wheat Nomin al PQP Q GDP 2005 $4 12 $1. 22 0 6 0 11 $1. 23 4 0 15 $1. 24 5 9 5 2007 2006 $4. 5 $4. 6 LO 5 LO Real GDP (in 2006 price s) GDP Deflat or Inflation Rate (using GDP Deflator) CP I Inflation Rate (using CPI)arrow_forwardTime left 1:52:43 Item € (billion) 10 12 13 Government purchases of goods and services 250 19 22 Compensation of employees 1,675 Gross investment 325 Finish attempt.. Rental income 20 1425 Consumption expenditures Net interest 40 Net exports of goods and 100 services Indirect business taxes and 300 depreciation The above table shows some (but not all) national income accounting data for a hypothetical country. According to these data, the value of GDP is billion. O €1,850. O €2,100. O €2,000. O €2,050. 21 11 20arrow_forward3arrow_forward
- A country's GDP is being measured by the expenditure method. Various categories of expenditure are recorded as follows (in billions of dollars): households' spending on consumption firms spending on capital goods firms' additions to inventories govemment spending on services government spending on capital goods government transfers (e.g., Social Security) value of exports value of imports 100 15 O$143 billion O$135 billion O$123 billion $167 billion None of the other answers are correct. 1 10 2 20 7 12 [If the image above doesn't appear click here to open it in a new tab.] What is the correct estimate of GDP?arrow_forwardThe following table shows the goods produced in 2020 and 2023. Use this table to answer the following question. Shirts Shoes Hats O $18,500 O $29,250 O $33,700 $25,500 Price ($) 50 90 2020 35 Quantity 100 What is the nominal GDP of 2023? 150 200 Price ($) 60 110 30 2023 Quantity 120 200 150arrow_forwardRelated to the Economics in Practice on p. 107: The value of the used goods sold on eBay from a U.S. seller to a U.S. buyer is Select one: O a. not counted in either U.S. GDP or GNP. Ob. counted in U.S. GNP but not GDP. O c. counted in both U.S. GDP and GNP. O d. counted in U.S. GDP but not GNP.arrow_forward
- Question 1 1 points Save Answer A company produced 8 dishwasher machines in 2015. The company sold 6 to households in 2015 and added 2 to its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the value of this company's output that will be included O $400 O $1,400 O $1,600 O $2,000 the 2015 GDP?arrow_forwardHelp Save Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells the dresses for $1,400 to kids attending the prom. The total contribution to GDP of this series of transactions is 37:07 Multiple Choice O $2,500. ○ $700. O SC $1,400. $1,300. 1 2 zoom Q W A S $ % 54 #3 E ய сла 5 MacBook Pro K6 & * ( 7 8 9 R T Y U - +1 יו O O D F G H J K L Z X C T H option command > B N M - A جو P { } [ ] = ? command optionarrow_forward5ñarrow_forward
- Table 7-3 (in $ billion) consumption = $1,000.00 inventory investment $450.00 purchased of new capital goods $550.00 government purchases $300.00 exports = $20.00 imports = $33.00 purchased of new residential housing $58.00 Refer to Table 7-3, GDP equals O $2.345.00 O $2.346.00 O $2,325.00 O $1,925.00arrow_forwardWhich one of the following has to be taken into account when GDP is estimated? O A. John purchases shares to the value of R150 000 in Anglo American plc. O B. Peter invests in a 24-month tax-free fixed deposit. O C. A firm buys Mpho, its sales representative, a new car. O D. Patrick, a university student, buys an old car from a friend. O E. Anne, a civil pensioner, receives her monthly pension from the government.arrow_forwardConsider two cars manufactured by Chevrolet in 2017. During 2017, Chevrolet sells one of the two cars to Emily for $20,000. Later in the same year, Emily sells the car to Jim for $18,000. The second automobile, with a market value of $19,000, is unsold at the end of 2017 and it remains in Chevrolet's inventory. The transactions just described contribute how much to GDP for 2017? O $39,000 O $20,000 $37,000 O $19,000arrow_forward
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