edpuzzle mod 38
You pay $15,000 for a used car at a dealership. The dealer's commission or fee is $1,200. The total contribution of this transaction towards the calculation of this year's GDP is _______.
$1,200
A bicycle company must purchase $80 worth of aluminum in order to manufacture one bicycle that it sells for $200. Assuming that aluminum is the only input used to manufacture the bicycle, the value added by the bicycle company is:
$120
In this example, the total contribution of this loaf of bread to the calculation of GDP would be:
$3.00
Which of the following would NOT count towards the calculation of U.S. GDP?
Ford vehicles produced in Germany
Which of the following would count towards U.S. GDP?
Hyundai cars made in Texas
Which of the following would count towards the calculation of U.S. GDP?
Toyota Camrys that are built in Ohio
There is both a buying and a selling side to every economic transaction.
True
GDP is used to:
determine the size of the economy at a certain time, determine the growth of the economy over time
The _________ approach is calculated by adding the aggregate spending of consumers, firms, government, and foreign consumers in the domestic economy.
expenditure
The __________ approach is the more commonly used method to calculate GDP.
expenditure
Gross Domestic Product is the economy's total production of _________ for a given period of time.
final goods and services
Economists divide the spending on an economy's goods and services into which of the following categories?
government purchases, consumption, investment, net exports
In the United States, Net exports is negative because:
imports into the United States are greater than exports out of the United States
The _________ approach is concentrated in the factor market.
income
Examples of business investment include:
innovate by creating new technology, building new factories, restock inventories, constructing new centers of production
Parts or products that go into producing other finished economic goods are known as:
intermediate goods
GDP does not include:
intermediate goods, non-market or illegal activities, used goods, financial transactions
Spending on new residential construction (housing) is added to which category of GDP?
investment
GDP is expressed in:
monetary value
If the warehouse manager of a Best Buy distribution center sees that the warehouse is running very low of a particular brand of televisions. This could be considered:
negative inventory investment.
A country's exports minus its imports during a period are _______.
net exports
Which component of U.S. GDP is usually negative?
net exports
It is important to avoid double counting when calculating GDP by:
not counting the value of intermediate goods.
Financial "investments" are:
not included in the calculation of GDP because nothing is produced.
A good or product will count towards an economy's GDP:
only if it is actually produced within the country's borders.
The most common type of investment spending is spending on:
physical capital equipment for businesses
One of the main determinants of a society's standard of living is:
the level of income.
China's GDP is expected to surpass U.S. GDP unless:
the level of technology in the United States vastly increases worker productivity, the size of the U.S. labor force increases in size.
The sale of marijuana in states where it has not been legalized:
would not count towards the calculation of GDP since it was conducted in an underground market.
Which of the following is an example of an intermediate good?
AA batteries packaged with a toy, cheese purchased by Pizza Hut
Ford Motor Co. produces a car in Michigan in November of 2014. The car gets purchased by a consumer in March of 2015. The car gets added to GDP of ________.
2014
Which item contributed more to the calculation of GDP in its respective year?
A $3,000 40 inch, flat screen tv manufactured and sold in the year 2008.
If we are calculating the gross domestic product of the United States for the year 2021, which of the following items will be correctly included in that calculation?
A Toyota truck produced in South Carolina in 2021.
Joe's Cardboard Co. sells cardboard boxes to various pizza chains such as Papa John's and Pizza Hut.
All of the sales of the cardboard boxes to the pizza chains not counted as part of GDP since the price of the pizza includes the cost of intermediate goods such as the cardboard boxes.
Which of the following represents the equation for GDP using the expenditure approach?
C +I +G + X - M
In which of the following ways can comparing GDP year - to - year be helpful to economists and policymakers?
It can help determine that exact amount of annual government spending, It can help measure the effectiveness of government policy, It can help identify where we are on the business cycle, It can help identify rates of economic growth or contraction.
Which of the following would not be added into the calculation of GDP?
The government sends an $800 Social security check to an elderly person.
Which of the following would count towards the calculation of GDP?
You have your car repaired at the car dealership, you use a stock trading website to purchase and manage your stocks, the website charges a fee for each transaction, the new tires (made in California) you purchase for your five year old car (the car was made in Japan)
Which of the following would NOT count towards the calculation of GDP?
Your aunt is retired and takes care of your two year old.
Which of the following would add more to the calculation of GDP?
a $5,000 diamond ring purchased by someone for their significant other
Which of the following would count towards the calculation of U.S. GDP for the year 2015?
a Chevy truck made in Michigan in October of 2015 but sold in Mexico in January of 2016
Household chores such as cooking, vacuuming, and doing laundry:
are not counted in the calculation of GDP since they were not conducted within a market.
Economists usually measure the size of an economy:
by the amount of stuff it produces.
The largest component of GDP tends to be:
consumption