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  3. Liberty ECON 214 InQuizitive Ch. 6 Answers Complete Solutions

Liberty ECON 214 InQuizitive Ch. 6 Answers Complete Solutions

 

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What data do economists use to calculate the real GDP of a nation?

Which of the following by definition directly adds to a country’s GDP (gross domestic product)?

Underground economies are smallest in countries with strong economies.

Which questions explore microeconomic topics and which explore macroeconomic topics? Apply the correct label to each question.

Which of the following are examples of non-market services?

Calculate the real GDP of the United States for the year 2014. Use 2009 as the base period and round to the nearest whole number.

According to the table, Canada has the eleventh-highest GDP among the countries with the largest economies in the world. Does this mean Canada also has the eleventh-best standard of living? Fill in the blanks to complete the passage.

Canada’s GDP – that Canadians have the eleventh-best standard of living. A nation’s – is a better standard-of-living indicator, because it measures –. Using this measure, it looks like Canada has a better standard of living than all but one other nation.

What might a decrease in sales of new cars indicate about the state of the economy?

The real GDP of Country A grew by only 1% from 2011 to 2013, while the real GDP of Country B grew by 5% during that same time span. Based on the data, what can we say definitely about the two countries?

Assuming that the trends from 1980 to 2008 continue for another decade, which country would you expect to have a lower standard of living in 2020 than in 1970?

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Click the year that produced a 3% rate of real GDP growth.

The per capita GDP and GDP growth rates of Country A and Country B are the same. Nonetheless, the citizens of Country B are clearly better off. How could this be true? Fill in the blanks to complete the passage.

The most natural interpretation of “better off” is that citizens of Country B have a higher –. It is possible that the citizens of Country B spend more time –. It is also possible that they live in a –. GDP – measure the quality-of-life indicators that would explain this.

Which of the following statements are good assessments of the value of GDP as an economic statistic?

Fill in the blanks to complete the passage explaining why GDP is not always the best measure of a country’s well-being.

GDP is the best measure of a nation’s economic activity. However, GDP does not take into account many factors that affect quality of life, like the amount of people’s – or the cleanliness of the –. GDP only measures a country’s economic –.

Calculate the annual percentage change in price level for the year 2014. Round to two decimal places.

Fill in the blanks to complete the passage about GDP and economic health.

Low GDP is not necessarily an indicator of an economy in poor health. For one thing, a –country may have a low GDP but a high –. For another thing, an economy with a low GDP but a strong – is healthier than an economy with a comparable GDP that is stagnant or declining.

In the graph, click on the start and end points of a period of recession or contraction.

Do recessions always prevent a long-term increase in a nation’s real GDP?

Which three countries would you expect to have the highest standard of living? Drag the labels to the appropriate country.

You can figure out how much the economy has grown over the years by simply looking at nominal GDP.

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