Micro-economics self quiz #9

Goods that are produced domestically but sold abroad are

exports

Net exports equals:

exports minus imports.

A transfer payment is a payment for:

which no services were rendered during the current year

Which of the following would NOT be included in this year's GDP?

your purchase of your neighbor's 2001 Toyota

The largest component of GDP is:

consumption expenditure.

A sheep ranch produces $30 worth of wool. A suit manufacturer produces $60 worth of suits. A retail outlet sells a suit to a customer for $180. The GDP would be:

$180

Value added in national income accounts refers to the:

difference in the final price and the value of inputs purchased

Everything else the same, if investment expenditures rise by $300 billion and imports increase by $300 billion, then GDP:

does not change.

The two major approaches used by the government in estimating GDP are:

expenditure and income

If we add up the consumer spending on goods and services, investment spending, government purchases of goods and services, and the value of exports, then subtract the value of imports, we have measured the nation's _____.

gross domestic product

The value, at current market prices, of the final goods and services produced during a particular period is:

gross domestic product

Nominal GDP:

has not been adjusted for changes in prices over time.

Intermediate goods are not counted in the calculation of GDP, because:

that involves double-counting.

Real GDP is:

the value of the production of all final goods and services adjusted for price changes.

GDP is the:

total market value of all final goods and services produced in one year.

In the United States, consumer spending accounts for approximately what percentage of GDP?

70%

Which of the following best represents the equation for GDP?

GDP = C + I + G + X - IM

Net domestic product measures:

GDP minus depreciation

Which one of the following transactions is included in a current year's GDP as investment spending?

Ronnie bought a new BMW.

Which one of the following is an example of consumption expenditure?

Stephanie bought a laptop for her brother.

Don has built an extension to his house, this transaction will be:

not included in GDP because it is not produced for the marketplace.

Which of the following would NOT be considered a government transfer?

payments by the Defense Department for a new weapons system

When comparing the standard of living between nation's, of the following, the best measure is:

real GDP per capita.

In the circular flow model, households:

sell resources in the factor markets

Investment spending is

spending on productive physical capital

An example of an intermediate good will be:

steel purchased by the aircraft manufacturers.