ECON 1202 Final

GDP includes: a. All final goods. b. All final services. c. Both final goods and final services.

C. Both final goods and final services.

T/F: Government purchases includes all of the following: social security payments, government employee wages, and takes purchased by the government.

False

T/F: If a country's nominal GDP increases, it means the country is producing more goods and services.

False

T/F: Nominal GDP is always larger than real GDP.

False

T/F: Real GDP is always larger than real GDP per capita.

True

Mexico and Bulgaria have roughly the same GDP per capita in 2014. Based on what you've learned in the video, is Bulgaria closer in GDP per capita to the US or to the Central African Republic? a. US b. CAR c. Cannot be determined

a. US

Real GDP per capita is positively correlated with all of the following except: a. malaria cases per capita b. life expectancy c. happiness d. education e. B & D only f. A, B, C, & D

a. malaria cases per capita

Real GDP per capita in the US ___ during the great recession of 2009. a. Increased b. Decreased c. Did not change

b. Decreased

Real GDP controls for: a. Changes in preferences b. Changes in population c. Changes in prices d. A & C only e. A, B, & C

c. Changes in prices

Which of the following is counted in US GDP? a. Used car purchased by a student for his commute to school. b. Used oven purchased by a baker for her cake shop. c. Drill purchased by a construction company. d. B & C only e. none of the above

c. Drill purchased by a construction company

Qatar has a higher GDP per capita than the US. In fact, Qatar has a GDP per capita that is roughly ___ times larger than the CAR's GDP per capita. a. 10 b. 50 c. 75 d. 250

d. 250

Measuring GDP using the national spending approach includes a. Consumption b. Net Exports c. Government Spending d. A & B only e. A, B, C

d. A & B only

Real GDP per capita is usually used to compare the standard of living of: a. The same country at different points in time b. Two different individuals c. Two different countries at one point in time d. A & C only e. none of the above

d. A & C only

Measuring GDP using the factor income approach includes: a. Employee compensation b. Interest c. Profit d. B & C only e. A, B, C

e. A, B, C

Which of the following is counted in US GDP? a. A new video game is made in China but purchased in the US. b. New growth in rainforests c. A new quilt made by Jane and given to her grandmother for her 80th birthday. d. A & C only e. None of the above

e. None of the above