Gross Domestic Product Flashcard

Front

Expectant parents buy supplies for the nursery. Would this be included in GDP?

Back

Yes - Consumer Spending

Front

GDP is calculated by adding consumption + investment + government spending + (exports sold - imports bought)

Back

adding consumption + investment + government spending + (exports sold - imports bought)

Front

A higher GDP generally correlates to a(n) ___________ standard of living.

Back

higher

Front

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

Back

Yes

Front

In which part of the GDP calculation does this fit? You spend $15 at AMC to see the latest Avengers movie.

Back

Consumer spending

Front

In which part of the GDP calculation does this fit? The US military spends $5 billion on five new helicopters.

Back

Government spending

Front

What is the total value of all final goods and services produced in the economy in a given year?

Back

GDP

Front

The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry. Is this included in GDP?

Back

No - Underground Economy

Front

Costco builds a new store in Mathis, Texas. Where would this show up in the GDP formula? (GDP=C+I+G+(X-M))

Back

Investment (Business)

Front

Which category of GDP includes housing investments? Options: Private Consumer Spending, Private Domestic Investment, Government Spending, Net Exports

Back

Private Domestic Investment