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Unformatted text preview: countries according
to per capita GDP, go to the CIA World
Factbook at www.emcp.net/GDPrank.
(If you want to check a different year,
simply change the year in the Web
address.) is $700 billion, government purchases are $1,200
billion, export spending is
$100 billion, and import
spending is $150 billion.
What does GDP equal?
4. A computer company
produces 25,000 computers this year and sells
22,000 to its customers.
According to government
statisticians, however, all
25,000 computers have
been purchased. How do
the statisticians reach this
conclusion? Critical Thinking
5. Suppose country X has a
GDP that is three times larger than that of country Y. Are the people in
country X better off than
the people in country Y?
Explain your answer. Applying Economic
6. A family has six people,
five of whom produce
goods and services that
are sold directly to consumers. One person in
the family is too young to
work. How would you go
about measuring the
family’s “GDP”? 11 (286-309) EMC Chap 11 11/17/05 6:06 PM...
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- Winter '14