question
Gross domestic product is the total ________ produced within a country in a given time period.
answer
market value of all final goods and services
question
If Nike, an American corporation, produces sneakers in Thailand this would
answer
add to Thailand's GDP but not to U.S. GDP
question
Which of the following is a final good?
A) the memory chips in your new smart phone
B) a share of IBM stock
C) flour purchased at the store to bake cookies at home D) flour used by the bakery to bake cookies
A) the memory chips in your new smart phone
B) a share of IBM stock
C) flour purchased at the store to bake cookies at home D) flour used by the bakery to bake cookies
answer
C
question
A ton of coal purchased by your local utility to burn to make electricity would be best described as
A) an intermediate good.
B) a financial asset.
C) a used good.
D) a final product.
A) an intermediate good.
B) a financial asset.
C) a used good.
D) a final product.
answer
C
question
In the circular flow of income
answer
households demand goods and services that are supplied by firms, while supplying factors that are demanded by firms.
question
In the circular flow diagram, aggregate expenditure includes
answer
consumption expenditure, investment, government expenditure, and net exports
question
Gross domestic product can be calculated
answer
either by valuing the nation's output of goods and services or by valuing the income generated in the production process
question
The difference between gross investment and net investment is
answer
depreciation
question
The expenditure approach measures GDP by adding
answer
consumption expenditure, gross private domestic investment, net exports of goods and services, and government expenditure on goods and services.
question
Nominal GDP is the value of final goods and services
answer
at the prices of that year.
question
Real GDP is
answer
the value of all the nation's farms, factories, shops, and offices measured in the prices of a single year.
question
According to the BEA in the second quarter of 2011 nominal GDP was $15 trillion and in the second quarter of 2012 nominal GDP was $15.6 trillion. Based solely on this information, from the second quarter of 2011, to the second quarter of 2012
answer
read GDP may have increased, decreased, or stayed the same.
question
The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called
answer
potential GDP.
question
Which of the following statements is true? A) Real GDP fluctuates around potential GDP.
B) Potential GDP fluctuates around real GDP.
C) Potential GDP is the same as real GDP.
D) When all of the economy's resources are fully employed, the value of production is called real GDP.
B) Potential GDP fluctuates around real GDP.
C) Potential GDP is the same as real GDP.
D) When all of the economy's resources are fully employed, the value of production is called real GDP.
answer
A
question
The use of purchasing power parity prices
answer
accounts for differences in the prices of the same goods in different countries when measuring real GDP.
question
Because pollution reduces economic welfare, on this count real GDP as measured
answer
overstates economic welfare.
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