Question 1

What is the Human Development Index?

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Question 2

When total output, income, employment, and trade decline for 6 to 12 months, the economy is in what part of the business cycle?

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Question 3

$$\begin{array} { c c c c c } 
& { \text { Data for 2012 } } & & { \text { Data for } 2013 } \
\hline \text { Item } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Hot dogs } & 4 & \$ 1.50 & 6 & \$ 1.75 \
\text { Pepsi } & 2 & \$ 1.00 & 3 & \$ 1.25 \
\hline
\end{array}$$
-The table gives data on the production and prices in a small economy. Use 2012 as the base period.
a. What does nominal GDP equal in 2012?
b. What does real GDP equal in 2012?
c. What does nominal GDP equal in 2013?
d. Using the chained-price method, what does real GDP equal in 2013?

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Question 4

List and discuss various types of goods and services omitted from measured GDP.

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Question 5

What is a business cycle?
 What are its phases and turning points?

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 What are...

Question 6

What would happen to measured GDP if more people started hiring workers to do house chores such as cooking and cleaning?

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Question 7

"If country A has a higher level of real GDP per person than country B, then people in Country A must enjoy a higher standard of living than people in Country B." Is this statement true or false and explain your answer.

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Question 8

Explain how our standard of living depends upon our level of real GDP per person but there might not be a one-to-one relationship between the standard of living and real GDP per person. Give examples of things that can affect one, but not the other.

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Question 9

$$\begin{array} { c c c c c } 
&{ \text { Data for 2012 } } &&{ \text { Data for 2013 } } \
\hline \text { Item } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Magazines } & 10 & \$ 5 & 30 & \$ 10 \
\text { Paperback books } & 10 & \$ 10 & 20 & \$ 15
\end{array}$$
-The table gives data on the production and prices in a small economy. Use 2012 as the base period. Using the chained-price method, what is the growth rate of real GDP from 2012 to 2013?

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Question 10

What is "underground production"?
 Is it included in GDP?

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 Is it included...

Question 11

If you buy a new water skis and other new equipment for $2,500 and take a week off of your job, where you earn $1,000 a week, to go water skiing. The equipment you purchased was all produced in the United States. You think that the week was worth $4,000. As a result of your vacation, GDP changes by how much?

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Question 12

While studying with your friend, your friend states, "Our leisure time increases GDP but lowers our standard of living because it reduces the amount of goods and services we can consume." Is your friend's statement correct?

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Question 13

Explain how the United Nations uses the Human Development Index (HDI)to better measure the standard of living around the globe.

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Quiz 14: Gdp: a Measure of Total Production and Income