Econ. Chapter 11 Quiz

What type of GDP shows the average level of wealth in a country on a person by person basis?

• Nominal GDP

• Real GDP

• GDP per capita

What type of GDP is calculated with the current year's prices and therefore does not factor in inflation?

• Nominal GDP

• Real GDP

• GDP per capita

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

• 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 

A shoemaker increases its bulk purchases of leather to keep up with demand.  Is this included in GDP?

• Yes - Investment 
• Yes - Government Spending
• No - Intermediate Goods
• No - used item

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

• YES - government spending is counted

• NO - government spending is not counted

Lauren coaches youth 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

Al spends $400 on used textbooks at the beginning of the semester in college. Is this included in the GDP?

• YES

• NO