Unit 6 (GDP & Business Cycles) Test Review

Front

Which of the following is the correct equation for GDP? Options: C+I+T+(X+M), C+I+G+(X+M), C+I+G+(X-M), C+I+T+(X+M)

Back

C+I+G+(X-M)

Front

When Americans buy electronics from China, what part of the GDP equation does this count as?

Back

Imports

Front

When a company buys new computers for their business, what part of the GDP equation does this count as? Options: Consumption, Investments, Imports, Exports

Back

Investments

Front

Which of the following would be counted in this year’s GDP? The value of a loan taken out this year, The value of a television produced last year but sold this year, The sale of a previously occupied house, The value of a savings bond sold by the federal government to investors this year

Back

The value of a television produced last year but sold this year

Front

Which of the following is an example of an intermediate good? Options: a pair of shoes at the mall, a new car, lumber purchased to build a house, a fee paid to real estate agent for sale of a house

Back

lumber purchased to build a house

Front

Is this counted in the GDP of the US? Cars made by a Japanese company in California.

Back

Yes

Front

Is this counted in the GDP of the US? Cars made by a US company in South Korea.

Back

No

Front

Is this counted in the GDP of the US? The materials (lumber, cement, bricks) used to build a house.

Back

No

Front

Is this counted in the GDP of the US? A new home that was recently built.

Back

Yes

Front

Is this counted in the GDP of the US? A farmer's purchase of a new tractor.

Back

Yes