ECO105Y1 Chapter Notes - Chapter 6: Resource Depletion, Business Cycle, Negative Number

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orchidcamel574

11 Apr 2016

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Eco105 economics: chapter 6: up around the circular flow. Nominal gdp: value at current prices of all inal products and services produced annually in a country (measured as a low: P & q of given year o: diferences between years are due to either price changes or quanity changes, value: the worth, in canadian dollars, of all the products and services produced. Gdp includes products and services produced within a country"s borders, no mater what the naionality of the business doing the producing. Real gdp: value at constant prices for one year at all inal products and services produced annually in a country. Uses constant prices for a single year to value the quaniies of products and services produced in diferent years. Diferences in real gdp between years show only changes in quaniies. Eliminates price inluences: real gdp per person: real gdp / populaion. Best measure of material standard of living.

Related Questions

7. The difference between nominal GDP and real GDP is that nominal GDP:

	A.	measures a country's production of final goods and services at current market prices, whereas real GDP measures a country's production of final goods and services at the same prices in all years.
	B.	is measured in dollar terms, whereas real GDP is measured in terms of numbers of goods and services produced
	C.	measures the total value of only final goods and services, whereas real GDP measures the value of all goods and services, both intermediate and final
	D.	measures a country's production of final goods and services at fixed prices, whereas real GDP measures a country's production of all final goods and services at current market prices

carminekoala560

Which of the following statements about GDP is correct?

(i) Nominal GDP is the aggregate value of all final goods and services at current prices, whereas real GDP is the aggregate value of all final goods and services at constant prices.

(ii) Nominal GDP is the aggregate value of all final goods and services at constant prices, whereas real GDP is the aggregate value of all final goods and services at current prices.

(iii) Nominal GDP is the aggregate value of the production measured by the cost of all the resources used in the production process whereas real GDP is the aggregate value of the production at market prices.

(iv) Nominal GDP is the aggregate value of the production at market prices, whereas real GDP is the aggregate value of the production measured by the cost of all the resources used in the production process.

An improvement in technology causes the production possibilities frontier (PPF) to

	shift to the right.
	pivot upward.
	shift to the left.
	pivot downward.

(7)

Which of the following is not shown by the circular flow model?

	The flow of resources in one direction and money in the other
	The equality of aggregate spending and aggregate income
	The interaction of households, firms, and the government
	The total amount of goods and services the economy can produce

(8)

Gross domestic product (GDP) is defined as

	the market value of all final goods and services produced in an economy in a given period of time.
	the market value of all consumption goods and services produced in an economy in a given period of time.
	the market value of all investment goods and services produced in an economy in a given period of time.
	the real value of all investment goods and services produced in an economy in a given period of time.

(9)

Real GDP

	includes all domestic and foreign transactions.
	includes the dollar value of domestic transactions only.
	tries to isolate the effect of changing output, holding prices constant.
	measures GDP in terms of prices of goods and services produced.

(10)

When economists talk about economic growth, they are usually referring to

	the percentage change in nominal GDP.
	the percentage change in real GDP.
	the percentage change in nominal investment.
	the percentage change in real investment.

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ECO105Y1 Chapter Notes - Chapter 6: Resource Depletion, Business Cycle, Negative Number

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