Strayer ECO100 Knowledge Check 6

Consumption is the purchase of goods and services by:

Households

Which of the following is included in the calculated Gross Domestic Product?

A local ice cream shop sells $17,000 worth of cones and sundaes on July 1.

Economists would most likely classify which of the following as a consumer durable goods?

Automobiles and furniture

_____ is about two-thirds of the demand-side of GDP, but it moves relatively little overtime.

Consumption

_____, which can be estimated by the growth of GDP, ultimately determines a prevailing standard of living in a country.

Economic growth

What is the difference between nominal GDP in real GDP?

Real GDP adjusts for inflation.

The nominal value of any economic statistic refers to the number that is actually announced at that time, while the _____ refers to the statistic after it has been adjusted for inflation.

Real value

What is now the largest single component of the supply side of GDP, representing over half of GDP?

Services

Which of the following is included in Investment (1)?

The amount spent on new factories and machinery

Which of the following is included in GDP calculations?

The university tuition paid to enroll in a course