A price index one year was 145, and the next year it was 167. What is the approximate percentage change in the price level from one year to the next as measured by that index?
15%
Which is a major reason why GDP is not an accurate index of society's economic well-being?
It excludes many improvements in product quality.
Which is a primary use for national income accounting?
It provides a basis for assessing the performance of the economy
Gross domestic product (GDP) is defined as...
the market value of final goods and services produced within a country in 1 year
GDP provides an indication of society's valuation of the relative worth of goods and services because it...
is a monetary measure
To include the value of the parts used in producing the automobiles turned out during a year in gross domestic product for that year would be an example of...
multiple counting
Which of the following is a public transfer payment?
D) The Social Security benefits sent to a retired worker
The sale in year 2 of an automobile produced in year 1 would not be included in the gross domestic product for year 2; doing so would involve...
including a non production transaction
The service a babysitter performs when she stays at home with her baby brother while her parents are out and for which she receives no payment is not included in the gross domestic product because...
this is a non market transaction
According to national income accounting, money income derived from the production of this year's output is equal to...
the amount spent to purchase this year's total output
Which would be considered an investment according to economists?
the construction of a new computer chip factory by Intel
A refrigerator was produced by its manufacturer year 1, sold to a retailer in year 1, and sold by the retailer to a final consumer in year 2. The refrigerator was...
counted as investment in year 1
The annual charge that estimates the amount of private capital equipment used up in each year's production is called...
depreciation
In gross private domestic investment is greater than depreciation, the economy will most likely be...
expanding
What can happen to the allocation of corporate profits?