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.
