14. Country A has a GDP of $400,000, and country B has a GDP of $100,000. The standard of living in country A... a) is higher than the standard of living in country B b) is lower than the standard of living in country B c) is similar to the standard of living in country B d) cannot be determined from the information provided

14. Country A has a GDP of $400,000, and country B has a GDP of $100,000. The standard of living in country A... a) is higher than the standard of living in country B b) is lower than the standard of living in country B c) is similar to the standard of living in country B d) cannot be determined from the information provided

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section7.1: Gross Domestic Product

Problem 2ST

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One way of measuring standard of living is by using real GDP per capita. a) Complete the table below by calculating Real GDP per capita for the 3 years (remember to show your work for at least one year): Years 1 2 3 Real GDP (in millions of dollars) $5,720 6,496 7,392 Population (in Real GDP per thousands) capita 220 224 231 b) By what percentage this country's RGDP per capita rose between year 1 and 3? Show your work!
What is the GDP per capita of a country with a population of 50 million and a GDP of $1.5 trillion? A) $30,000 B) $15,000 C) $3,000 D) $1,500
The following transactions took place in Ecoland in 2018: Trillions of 2014 dollars Government purchases 400 Taxes 360 Firms’ profits 300 Investment 400 Consumption expenditure 1000 Wages paid to labor 1400 Exports 300 Government transfer payments 150 Imports 350 (a). Calculate Ecoland’s real GDP in 2018, i.e., GDP measured in 2014 $. (b) How much do households save in Ecoland? Is it enough to finance domestic investment? (c) Does the government have a balanced budget? If not, what is the surplus or deficit? (d) If Ecoland’s nominal GDP in 2018 is $1900 trillion, how much inflation has Ecoland experienced since 2014?
1. China has a greater GDP value than Canada. Their national GDP is currently 2nd in the world. Why might Canada still be better off in terms of Standards of Living? a) All of the following are correct statements. b) Canada's spending on GDP has a greater percentage going towards health, education and social welfare programs. c) Canada's economic growth has been more environmentally friendly and has caused less damage to their environment. d) There is less extremes between those who have money and those who do not. Hence the wealth in Canada is more evenly spread out when compared to China. e) Canada has a smaller population so our GDP per capita is greater.
(1) Use the data from the following table to calculate the GDP per capita of each country. The GDP per capita for Estonido and for Galicia in 2018 is Country Year GDP (billions in U.S. $) Population (millions) Estonido 2017 525.50 73 Galicia 1,658.00 118.25 Estonido 2018 721.75 78 Galicia 1,724.30 121.8 (a) $925 for Estonido and $1,412 for Galicia in 2017. (b) $9,253 for Estonido and $14,157 for Galicia in 2017. (c) $7,199 for Estonido and $14,021 for Galicia in 2017. (2) When calculating GDP as the sum total of all spending, which of the following should be included? (a) government purchases of labor, goods, and services. (b) government transfer payments. (c) savings. (3) For productivity to increase (a) the total number of hours worked has to increase. (b) the value of the production per hour worked has to increase. (c) the total production or output has to increase.
3) Answer the following questions about country A. a) What was GDP equal? b) What was the value of total production equal to? c) What approach did you use to make this calculation? Items RM (million) Agriculture, Forestry & Fishing 25874 Construction 89756 Mining & Quarrying 12345 Electricity, Gas & Water 96325 Manufacturing 70002 Government Services 78953 Wholesale, Retail, Hotel & Restaurant 258 Finance, Insurance & Real Estate 456 Transport, Storage & Communication 999 Other Services 451 Factor Income Paid Abroad 452 Indirect Taxes 200 Factor Income Received From Abroad 500 Subsidies - 85 Depreciation 891
15. If the Real GDP of county A grew by 4% last year, and the population grew by 1%, the standard of living in country A: a) Improved b) Worsened c) Remained the same d) Cannot be determined by the information given
ITEMS RM (millions) Agriculture 18,000 Mining 12,000 Manufacturing 22,000 Constructions 8,000 Electricity, gas and water 1,800 Transportation and communication 900 Indirect tax 800 Subsidies 700 Government services 1,700 Other services 900 Capital consumption 500 Income received from abroad 750 Income paid to abroad 450 Based on the table above, calculate: a) Gross Domestic Product (GDP) at market price. b) Gross Domestic Product (GDP) at factor cost. c) Gross National Product (GNP) at factor cost. d) national income. e) What approach did you use to make calculation in question (i)? b) The table below shows national income data for a country R. Year Nominal GNP (RM million) Price Index 2017 16 400 100 2018 18 800 108 i) Calculate real income for 2017 and 2018. ii) How much growth rate from year 2017 to 2018?
I. Imports are flows of payments to domestic households from foreign firms in exchange for goods and services II. Exports are flows of payments to domestic firms from foreign households in exchange for goods and services III. Imports are added to the GDP computation to account for goods and services produced by other economies but included in consumption, investment, or government spending IV. Exports are deducted from the GDP computation to account for goods and services produced by the economy but not included in consumption, investment, or government spending O All Statements are false Only Statement I is false Only Statement II is true O Only Statement II is false All Statements are true
Applied Problems on Monetary Policy and Interest Rates 1. For each of the following questions, draw the Money Demand curve (MD) and Money Supply curve (MS) and label the equilibrium interest rate as i*. Also show how the MS- MD graph changes due to the given events and as a result how the equilibrium interest rate changes. (In your answer you should clearly state and show what happens to the MS and MD curves and also what happens to the interest rate).
7 Gross national product counts goods and services produced within the country's borders, regardless of who produced it Select one: a. False b. True
Why might per capita GDP be only an imperfect measure of a countrys standard of living?