6

$1.2 trillion. If billion, then: equals $690 billion, investment 7. Gross Domestic Product bitcPrals governmen equals government A. exports exceed imports exports by $150 exports by $50 billion. by $50 billion. equals $200 billion, and and spending equa equals $260 consumption 8. imports exceed bilion. imports exceed imports by SISO billion . D. exports exceed

8. imports exceed exports by $50 billion.

20. Which of the following is included in GDP? 8. the fees charged for a stock broker's services A. revenue from the sale of a three-year old car C. the receipts from a sale of land

8. the fees charged for a stock broker's services

sitting in warehouses and on store shelves to the goods produced by one business that to be sold to consum s a small ers, and either still category that refers A. Inventories B. Services C. Structures D. Durable goods

A. Inventories

28. If imports exceed exports, as in recent years, then exists. A. a trade surplus B. a trade deficit C. a trade imbalance D. trade disequilibrium

A. a trade surplus

15. To compare the GDP of two different countries with different currencies, it is necessary to use A. an exchange rate B. foreign currency C. currency rates D. per capita GDP

A. an exchange rate

of GDP. 14. are now the largest single component of the supply side of GDP, representing over A. Durable goods B. Services C. Nondurable goods D. Structures

B. Services

4. The demand measure of GDP accounting adds together: A. wages and salaries, rent, interest, and profit. B. consumption, investment, government purchases, and trade C. consumption, government purchases, wages and salaries, and trade balance. consumption, interest, government purchases, and trade balance.

B. consumption, investment, government purchases, and trade balance. consumption,

10. In order to avoid double counting, statisticians just count the A. final inventories B. final goods and services C. intermediate goods and services D. durable goods and nondurable goods

B. final goods and services

12. Which of the following is not counted as a part of GDP? A. the purchase of 100 shares of AT&T stock by your grandfather B. the purchase of a snow plough by the city of Minneapolis. C. the unsold additions to inventory at an appliances store D. the purchase of a loaf of bread by a consumer

B. purchase the unsold additions to inventory at an appliances store

21. GDP does not directly include: A. the value of goods produced domestically and sold abroad. B. the value of intermediate goods sold during a period. C. the value of services rendered during a period. D. the value of final goods and services produced, but not sold, during a period.

B. the value of intermediate goods sold during a period.

residential finance. 37. Once every the Census Bureau does a comprehensive survey of housing and A. month B. 5 years C. 10 years D. 20 years

C. 10 years

3. Consumption in the United States is about GDP, and it moves relatively little over time. A. 10 % B. 33 % C. 68 % D. 90 %

C. 68 %

11. Which of the following is included in the calculated Gross Domestic Product? A. Farmer Freddie sells his second-hand tractor to his son. B. Suzanne buys a love seat and chair for $85 at the yard sale on the corner. C. A local ice cream store sells $17,000 worth of cones and sundaes on July 1. D. Mr. Farkle buys a used lawn mower from his neighbor, Mr. Sparkle

C. A local ice cream store sells $17,000 worth of cones and sundaes on July

6. Which of the following are most likely classified by economists as consumer durable goods? A. food, clothing B. drugs, toys, magazines, books C. automobiles, furniture D. stocks, bonds

C. automobiles, furniture

2. Final goods or services used to compute GDP refer to: A. the sum of all wages paid to laborers. B. the factors of production used to produce output. C. goods and services purchased by the ultimate users. D. the value of outstanding shares of stock of manufacturing firms.

C. goods and services purchased by the ultimate users. manufacturing

disequilibrium 29. On the demand side of GDP, consumption by accounting for about two-thirds of the GDP in any year. is the largest component of GDP, A. services B. businesses C. households D. government

C. households

8. The val ue of what businesses provide to other businesses is captured in the final products end of the chain. A. service B. value C. production D. supply

C. production

41. The difference between nominal GDP and real GDP is: A. nominal GDP measures actual productivity B. nominal GDP adjusts for inflation C. real GDP adjusts for inflation D. real GDP excludes imports and exports

C. real GDP adjusts for inflation

16. is about two-thirds of the demand side of GDP, but it moves relatively little over time. A. Government B. Consumption C. Investment D. Services

Consumption

mately determines the prevailing which can be approximated by the standard of living in a country. growth of gross domestic product, A. Trade balance B. Inflation C. Education D. Economic growth

D. Economic growth

25. A business cycle reflects changes in economic activity, particularly real GDP. The stages ofa business cycle are A. trough, expansion, recession, pealk B. contraction, recession, expansion, boom C. expansion, trough, recession, peak D. expansion, peak, recession, trough

D. expansion, peak, recession, trough

19. Which of the following is included in GDP calculations? D. the university tuition paid to enroll in a course C. a crisp $50 bill received on your birthday B. cash income received by a self-employed A. sales revenue received from a yard sale landscaper that is not reported to the

D. the university tuition paid to enroll in a course

1. GDP is: A. the sum of all B. the value of all final currency and coins in circulation. goods and services C. the value of all final good and D. the value of all final goods and services produced domestically produced by a government. services produced anywhere in the world by a nation's firms.

D. the value of all final goods and services produced domestically

13. Which of the following is not included in GDP? A. the payments for a chiropractor's services B. cash income paid to a day C. the replacement of brake pads on your laborer that is not reported to the tax authorities six-year-old vehicle D. the fees for legal services rendered by your lawyer

payments B. cash income paid to a day laborer that is not reported to the tax authorities

35. The gap betwe en exports and imports in a nation's economy is called the

trade balance