practice ch 8 quiz

Durable consumer goods include all of the following EXCEPT

Apple company stock.

Social Security payments received by your grandmother

are excluded from GDP, but are included in personal income.

Inventory investment occurs when

automobile dealers add to their stocks of unsold cars.

GDP is a

flow because it measures income over a period of time

Intermediate goods are

goods that are used up entirely in the production of final goods.

GDP

is a flow measure since it represents the value of a flow of production over a year's period.

Which of the following is a final good?

lawn mower purchased by a household

GDP minus depreciation equals

net domestic product

Which of the following would be included when calculating Gross Domestic Product

none of these above

Transfer payments are included in

personal income

An increase in Social Security contributions will make

personal income smaller.

GDP does NOT include intermediate goods because

that would count the value of intermediate goods twice

Services include all of the following EXCEPT

the purchase price of a share of stock

Gross Domestic Product is best defined as

the total market value of all final goods and services produced during a year by factors of production located within a nation's borders.

Gross Domestic Product measures

the total market value of final goods and services produced within a nation's borders.

U.S. Gross Domestic Product (GDP) does NOT include which of the following?

the value of goods produced in a foreign country by U.S. owned firms

Intermediate goods are NOT included in Gross Domestic Product (GDP) calculations because

they are used in the production of final goods and would then be counted twice.

A car sold from a used car lot

would not be counted in Gross Domestic Product (GDP).

If C = consumption, G = government expenditures, and I = gross private investment expenditures, the mathematical representation of Gross Domestic Product (GDP) using the expenditure approach is

Gross Domestic Product (GDP) = C + I + G + Net exports

Net domestic product (NDP) is

Gross Domestic Product (GDP) minus depreciation.

Examples of nondurable consumer goods include all of the following EXCEPT

a truck

When one uses the expenditure approach to calculate Gross Domestic Product (GDP), which of the following would be included

all of these

The term "value added" refers to the dollar value of

an industry's sales less the dollar value of the intermediate goods purchased by the industry

If a firm produces more output than it sells, there will be 1 an increase in the firms inventories 2 an increase in the gross private investment of the nation

both 1 and 2

If all other factors are held constant, an increase in import

causes Gross Domestic Product (GDP) to decrease.