Econ Chapter 12 Self-Assessment

(A)

Dolly spends $400 on used textbooks at the beginning of the semester in college. Is this included in the GDP?

• YES

• NO

(A)

The value of the output of all final goods and services produced within a country in a year.

• total ouput

• Gross Domestic Product

• national income

• net domestic product

(A)

Gross Domestic Product (GDP) ONLY refers to the total value of FINAL goods and services produced in a country in one year

• True

• False

(A)

What is one reason that a country could have a high GDP?

• Because they have high wages.

• Because they have a highly educated population.

• Because they have low taxes.

• Because they love going to space.

(A)

Which is an example of investment in human capital?

• trucks

• factories

• education

• highways

(A)

How does investment in capital goods by companies help a country increase its GDP?

• The GDP of a country goes down when companies make more money

• Companies that invest in capital goods are able to provide a better place for their workers to work

• Highly trained workers help the company be more profitable by finding ways to help the company work better.

• When a company invests in capital, it can produce more goods at a better price and increase the profit that it makes.

(A)

GDP is calculated by

• adding up the cost of goods used in producing the item

• subtracting all costs from total revenue

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

(A)

If GDP falls for at least 2 Quarters, it is called.

• Expansion

• Recession

• Clumsy

• Frictional

(A)

Which best describes GDP?

• Monetary value of all final goods and services produced within a country’s borders in a year

• Personal income and expenses each day

• It is a cycle of things and stuff

• Products shipped from one country to another for purchase

(E)

Which term describes the phases of expansion and contraction in an economy over time?

• Recessions

• Business cycles

• Output yo-yos

• Total product oscillations