ECON 105 Lecture Notes - Lecture 3: Capital Good, In Private, Black Market

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harlequinmuskrat439

24 May 2017

School

Simon Fraser University

Department

Economics

Course

ECON 105

Professor

Dave Cox

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ECON 105 Full Course Notes

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Lo1: production and gross domestic product: gross domestic product (gdp, measure of production in the economy, key definition. If you yourself are babysitting your child that will not be considered in. We only include what the retailer(final) will sell it for, which is . Intermediate goods: goods used up in the process of producing something else, we exclude intermediate goods to avoid double (maybe multiple) counting, Because they are not goods and services that are. Land is not produced, its just there. Stocks and bonds are a claim of ownership and not: although produced. 11: buying and selling land, and financial services can indirectly contribute to. If a dealer or broker is involved since they are producing a. In period one you"re making jeans and the total value of that comes out to so the contribution to gdp in that period is . Not how much the economy actually produced during that quarter.

Related Questions

If an economy's GDP falls, then it must be the case that the economy's

A. Income and saving fall

B. Income and market value of all products both fall.

C. Income falls and the market value of all production rises.

d.Income rises and the market value of all production falls.

2. Gross Domestic product measures

a. Income and expenditure.

B. Income

c. Expenditure.

d. Neither.

3. If all quantities produced in the united states rise by 13.4% and all prices fall by 13.4% which of the following occurs?

Does Real GDP rise or fall? Does the nominal GDP rise or fall?

4. Which of the following does not add to US GDP?

a. The federal gov. Sends a social security check to your grandmother.

b. CIty of new york pays a salary to policemen.

c. Air France buys a plane from Boeing, the US aircraft manufacturer.

5. IS the best single measure of a society's economic well-being the unemployment rate or the GDP?

6. Keynesian economics was developed by John Keynes in response to:

A. The great recession.

b. The great depression.

C. Out of control gov. spending.

17. For an economy as a whole,

a. Wages must equal profit.

b. consumption must equal income.

c. Income must equal expenditure.

d. Consumption must equal saving.

8. As in the case f Ireland, Keynesian economics does not tend to work in countries that:

a. Are large and self-sustaining.

b. Are small and insulated.

c. Are medium-sized with good governments.

d. Are smaller and are open to free (ish) trade.

e. Are large and have free trade.

Thanks! Please be as detailed as you can.!

coralmoose18

1. In the actual economy, households

a. spend all of their income.

b. divide their income among spending, taxes, and saving.

c. buy all goods and services produced in the economy.

d. Both (a) and (c) are correct.

2. Gross domestic product is defined as

a. the quantity of all final goods and services demanded within a country in a given period of time.

b. the quantity of all final goods and services supplied within a country in a given period of time.

c. the market value of all final goods and services produced within a country in a given period of time.

d. Both (a) and (b) are correct.

3. GDP adds together many different kinds of products into a single measure of the value of economic activity by using prices determined by

a. banks.

b. economists.

c. the government.

d. markets.

4. Over time, people have come to rely more on market-produced goods and less on goods that they produce for themselves. For example, busy people with high incomes, rather than cleaning their own houses, hire people to clean their houses. By itself, this change has

a. caused measured GDP to fall.

b. not caused any change in measured GDP.

c. caused measured GDP to rise.

d. probably changed measured GDP, but in an uncertain direction; the direction of the change depends on the difference in the quality of the cleaning that has resulted.

5. A steel company sells some steel to a bicycle company for $150. The bicycle company uses steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute

a. $150 to GDP.

b. $250 to GDP.

c. between $250 and $400 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle.

d. $400 to GDP.

6. The total sales of all firms in the economy for a year

a. equals GDP for the year.

b. is larger than GDP for the year.

c. is smaller than GDP for the year.

d. Any of the above is possible.

7. GDP is equal to

a. the market value of all final goods and services produced within a country in a given period of time.

b. Y.

c. C + I + G + NX.

d. All of the above are correct.

8. The consumption component of GDP includes spending on

a. durable goods and nondurable goods, but not spending on services.

b. durable goods and services, but not spending on nondurable goods.

c. nondurable goods and services, but not spending on durable goods.

d. durable goods, nondurable goods, and services.

periwinkletoad580

1.
What is an accounting identity?
A. It is a statement that by definition must be true
B. It is an equality that must be true regardless of the value of its variables.
C. It is a technique accountants employ in the preparation of income statements.
D. All of the above.
E. A and B only.

The account identity that is used to estimate the gross domestic product of a country is given by
A. Income = Production - Comsumption
B. Consumption = Income - Saving
C. Production = Expenditrue = Consumption
D. Production = Expenditure = income

2.
What important factors do GDP estimates leave out? (check all that apply)
A. Leisure
B. The value of intermediate goods.
C. Home production.
D. The production of illegal professions.
E. Capital depreciation.

3.
Which of the following news stroies (all published in early 2014) would typically be studied in macroeconomics? (Select all that apply)
A. "5 Reasons Why Apple is Looking Like the Next Sony"
B. "Expectations High for March Employment"
C. "We Believe Inflation Should Rule Monetary Policy."
D. "Which College-and Which Major-Will Make You Richest"
E. "What If Economic Growth Is No Longer Possible?"

4.
Why is it essential to differentiate between real and nominal growth rates of GDP?
A. The nominal growth rate is more informative than the real growth rate since it is broader in the sense that it captures both price and output changes.
B. The nominal growth rate combines the effect of price changes along with changes in the production of goods and services and thus gives a less clear indication of the impact on living standards
C. It is the real growth rate that is meaningful since it indicates the change in the production of goods and services, a very significant source of improved living standards.
D. All of the above.
E. B and C only.

azureelephant219

ECON 105 Lecture Notes - Lecture 3: Capital Good, In Private, Black Market

ECON 105 Full Course Notes

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