Reeves - SGP Economics Topic 7a

Which is NOT included in Gross Domestic Product (GDP) as a measure of the economy?

• Final goods and services
• Work done at home such as house renovations
• Dollars
• Government spending

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

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

• Recessions
• Business cycles
• Output yo-yos
• Total product oscillations

The phase of a business cycle in which real GDP reaches the lowest level is the.

• Recession
• Depression
• Recovery
• Trough

How do we measure economic growth?

• Increases in the price level, as indicated by the GDP chain price index
• Increases in fictional GDP
• Increases in real GDP
• Increases in the labor force

What type of GDP is calculated with the current year's prices?

• Nominal GDP
• Real GDP
• GDP per capita

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

• Yes - Consumer Spending
• Yes - Investment 
• No - Intermediate goods
• No - Non-market activity

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

• Yes - Consumer spending
• Yes - Government Spending
• No - Underground Economy 
• No - Non-market activity 

The federal government is expected to spend $3.95 trillion this year.  Will this be counted in GDP?

• YES
• NO

Mark always changes his own oil.  Is this effort counted in GDP?

• No - Black Market
• No - Non-market Activity
• No - Unreported Income
• No - Purely financial transaction