ScienceEconomicsEcon Quiz 2 example #31797
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Econ Quiz 2

Alyssa Martin avatar Alyssa Martin
16 October 2022
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question
The formula from the expenditure method indicates that GDP is equal to:
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C + I + G + (X-M)
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GDP is:
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The value of all final (new) goods and services produced in a country within a given period
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Final goods or services used to compute GDP refer to:
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goods and services purchased by the ultimate end use consumer.
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Which of the following is an example of an intermediate good?
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cloth sold to a suit manufacturer
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The goods and services that are used in the production of other goods and services are called:
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intermediate goods.
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Which of the following is included in the calculated gross domestic product?
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A local ice cream store sells $17,000 worth of cones and sundaes on July 4
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Which of the following products are not included in current U.S. GDP
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a Ford Mustang produced and sold last year
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Which of the following is not included in GDP calculations
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the value of 500 shares of Microsoft stock sold to an investor
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If individuals were paid for their household production, GDP would:
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increase.
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The expenditure approach to GDP accounting includes:
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consumption investment net exports
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Net exports are defined as:
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exports minus imports.
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Consumption is the purchase of goods and services by:
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households.
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Which of the following is not a subcategory of consumption spending?
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consumer investment
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The largest single expenditure component of GDP is:
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consumption.
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New residential construction is generally included in which category of GDP?
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investment
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The most volatile (unstable) GDP category under the expenditure approach is:
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investment.
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17
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b
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18
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D
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19
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B
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Changes in inventories are included in which category under the expenditure approach to GDP accounting?
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investment
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The investment component of GDP includes:
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construction of a new steel mill.
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Government purchases, under the expenditure approach to GDP accounting, includes all of the following EXCEPT:
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welfare payments.
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All of the following are examples of producer goods except:
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appliances.
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Which component of current U.S. GDP under the expenditure approach is most likely to be negative?
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net export
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Which of the following is a problem with using real GDP as a measure of economic well-being?
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It fails to measure the value of leisure It fails to measure the underground economy It does not factor in externalities
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GDP that has been adjusted for changes in the price level is called:
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real GDP.