Macro Concepts

What is the primary measure of economic growth/health for a nation?

• Consumer Price Index
• Gross National Product
• Gross Domestic Product
• Net Exports

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

• Nominal GDP
• Real GDP
• GDP per capita

What type of GDP uses a base year's prices in order to make fair comparisons?

• GDP per capita
• Real GDP
• Nominal GDP

High levels of GDP per capita indicate...

• Higher levels of happiness 
• Higher standard of living
• Equal levels of wealth 
• Self-sufficient communities

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 

Michael Kors hires designers to come up with new product lines.  Is this included in GDP?

• Yes - Consumer Spending
• Yes - Investments 
• No - Black Market 
• No - purely financial transaction

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 

Lauren coaches softball and gets paid in cash each week.  Is this included in GDP?

• Yes - Consumer Spending
• Yes - Investment 
• No - Underground Economy
• No - Purely financial transaction