GDP

Business spending on physical capital, new homes, and inventories is counted in which component of GDP?

• consumption
• investment
• government spending
• imports-exports

Represents business activity conducted without the knowledge of the government.

• under economy
• underground economy
• red economy
• hidden economy

The total dollar value of all final goods and services produced within the country’s border in a given year.  This measure includes inflation.

• Gross National Product (GNP)
• Gross Income Measure (GIM)
• Nominal Gross Domestic Product (GDP)

The total dollar value of all final goods and services produced within the country’s border in a given year after inflation is taken out of the data.

• Nominal GDP
• GDP/capita
• Gross GDP
• Real GDP

The village of Menomonee Falls purchases a new fire truck.  Where would this show up in GDP formula?

• Consumption
• Investment
• Government Spending
• Exports-Imports

You buy some Toblerone chocolate manufactured in Switzerland.  Where would this show up in the GDP formula?

• Consumption
• Investment
• Government Spending
• Exports-Imports

The U.S. government agency NASA contracts with a firm in Alabama to provide parts for the space station. Where would this show up in the GDP formula?

• Consumption
• Investment
• Government Spending
• Exports-Imports

Costco builds a new store in Menomonee Falls, Wisconsin. Where would this show up in the GDP formula?

• Consumption
• Investment
• Government Spending
• Exports-Imports

John went to Sports Clips and purchased a haircut.  Where would this show up in the GDP formula?

• Consumption
• Investment
• Government Spending
• Exports-Imports

Would the following be included or not included in GDP?  The purchase of a new tractor by a farmer

• Included
• Not included