Standard of Living

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 British company purchases a one-year membership to PartyFolks.com, a U.S. based company

• GDP increases
• GDP decreases
• No change

The U.S. Government hired 10 Chinese-language experts to train U.S. Workers.

• GDP increases
• GDP decreases
• No change

A shoe produced in South Korea and sold in the U.S.

• Included in U.S. GDP
• Included in South Korea GDP
• Included in Canadian GDP

The most important measure of economic growth is... 

• GNP
• GNC
• DDP
• GDP

Just like calculating your own income GDP measures...

• how well the U.S. is doing financially.
• How poorly goods and services are distributed.
• The best way for resources to be obtained.
• How the United States is doing with their allies.

What does Per Capita Mean?

• Per Household
• Per Object
• Per Worker
• Per Person

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

High levels of GDP per capita indicate...

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

An import is a

• Good/service brought into a country
• Good/service sent to another country
• Good brought into a country