Chapter 6 p.182 What data do economists use to calculate the real GDP of a nation?Correct Answer(s)Market valuesPrice levelIncorrect Answer(s)Income tax rateUnemployment ratep. 196 Which of the following are examples of non-market services?Correct Answer(s)Cutting your own hairChanging the oil in your car yourselfIncorrect Answer(s)Going to the barberTaking your car to the mechanic for routine maintenancep. 175 Which of the following by deFnition directly adds to a country’s GDP (gross domestic product)?Click or tap a choice to answer the question.√Correct choiceIncreased commercial travel X Discovery of untapped oil reserves
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XIncorrect choiceGrowing populationXIncorrect choiceIncreased government borrowingp. 196 Underground economies are smallest in countries with strong economies.√Correct choice Truep. 174Which questions explore microeconomic topics and which explore macroeconomic topics? Apply the correct label to each question. What efect did the interest rate have on inFation?What efect did ±alling home values have onunemployment?Why did Company C increase its advertising budget?Why did Billi buy a new house?p. 182 ²or each output, apply the appropriate label.A smartphone manu±actured overseas and sold locallyA microprocessor chip sold to a computer manu±acturerA computer sold to a retail consumerMacroeconomicsMicroeconomicsNot included in GDPIncluded in GDP
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Landscaping on a residencep. 197 most natural interpretation of “better oF” is thatcitizens of Country B have a higher quality of life. It is possible that the citizens of Country B spend more time in leisure activities. It is also possible that they live in a cleaner environment. GDP does notmeasure the quality-of-life indicators that would explain this.p. 191 Low GDP is not necessarily an indicator of an economy in poor health. ±or one thing, a smallcountry may have a low GDP but a high per capita GDP.±or another thing, an economy with a low GDP but a strong real GDP growth rateis healthier than an economy witha comparable GDP that is stagnant or declining