Economic Indicators

Which economic indicator is best described as Gross National Product minus inflation and depreciation?

• Gross Domestic Product
• Net National Product
• National Income
• Personal Income

Gross domestic product is equal to the market value of all final goods and services:

• exchanged during a period.
• produced domestically during a period.
• produced by the citizens of a nation during a period.
• produced domestically during a period minus the depreciation of productive assets.

Which of the following expenditures would not be included in GDP?

• Purchase of a new lawnmower.
• Purchase of a silver cup previously sold new in 1950.
• Purchase of a ticket to the latest movie.
• All of these would be counted in GDP.

Personal consumption expenditures include:

• all commodities that business firms buy.
• the purchase prices paid for stocks and bonds by individual households.
• the construction of residential housing.
• all goods and services bought by households.

In the circular flow model,

• money flows from the firms to the households through the product market.
• money flows from the households to the firms through the product market.
• money flows from the households to the firms through the resource market.
• money flows from the households to the firms through both the product market and the resource market.

All final goods and services that make up GDP can be expressed in the form:

• GDP = C + I - G + (X + M).
• GDP = C + I + G + (X + M).
• GDP = C + I + G + (X - M).
• GDP = C + I + (X - M).

Personal income minus personal taxes is:

• disposable personal income.
• net national income.
• proprietors' income.
• indirect business taxes.

The period between the peak and the trough is the _____; the period between the trough and the peak is the _____.

• recession; expansion
• expansion; recession
• peak; trough
• trough; peak

The unemployment rate equals the number of persons:

• unemployed divided by the number employed.
• unemployed divided by the number in the labor force.
• unemployed divided by the population age 16 and over.
• not working divided by the population age 16 and over.

Inflation is defined as an increase in:

• real wages of workers.
• real GDP.
• the average price level.
• all consumer products.