question
Gross domestic product is officially measured by adding together the
answer
b. Market value of all final goods and services produced within the borders of a nation
question
Which of the following items is included in the calculation of GDP?
a. Purchase of 100 shares of Apple stock
b. Purchase of a used car
c. The value of a homemaker's services
d. Sale of Gulf War military surplus
e. None of the above would included
a. Purchase of 100 shares of Apple stock
b. Purchase of a used car
c. The value of a homemaker's services
d. Sale of Gulf War military surplus
e. None of the above would included
answer
e. None of the above would be included
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Which of the following expenditures would not be included in GDP?
answer
b. Purchase of a silver cup previously sold new in 1950
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Gross domestic product (GDP) includes
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d. only final goods and services
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GDP includes
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c. the cleaning-up expenses associated with pollution
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The largest component of GDP is
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a. personal consumption expenditures
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The circular flow of economic activity is a model of the
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a. flow of goods, resources, payments, and expenditures between the sectors of the economy
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All final goods and services that make up GDP can be expressed in the form
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c. GDP = C + I + G + (X-M)
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The expenditure approach for the calculation of GDP includes spending on
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c. consumption, gross private domestic investment, government spending for goods and services, and net exports
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Which of the following is a shortcoming of GDP?
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c. GDP excludes non market transactions
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National Income (NI) is calculated by adjusting GDP for
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a. depreciation
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Which of the following is included in personal income but not in national income?
answer
d. Social Security payments
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Which national income account should be examined to discover trends int the after-tax income that people have to save and spend?
answer
c. National income (NI)
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The equation for determining real GDP for year X is
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c. (nominal GDP for year X)/ (GDP chain price index for year X) x 100
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The most broadly based price index is the
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d. GDP chain price index
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Which of the following would be counted as a final good for inclusion in GDP?
answer
a. piece of glass bought this year by a consumer to fix a broken window
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Based on the circular flow model, money flows from households to businesses in
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b. product markets
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If the underground economy is sizable, then GDP will
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a. understate the economy's performance
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The income that people earn in resource or factor markets is called
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a. national income
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Increased production, but not increased inflation, will result in higher
answer
c. real GDP
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