Chapter 2 - 2.1

The Gross Domestic Product is the total value of all final goods and services produced in a country during one year.

• True

• False

Which is the best definition of GDP?

• Goods produced outside of a countries.

• final goods and services produced in a country

• intermediate goods sold within a country

• Closely related to GNP

Inflation measures a change in _________

• Jobs

• Number of Banks

• Prices

• Air Pressure

A good way to measure standard of living is by calculating

• the economic growth rate
• the inflation rate
• the unemployment rate
• per capita GDP

The Labor Force is made up of......

• Everyone aged 12-65

• employed and unemployed

• all citizens

• only the employed

Which of the following results in higher average incomes for workers?

• the job has a title

• higher education is required for the job

• people must be interviewed for the job

• the job was found on the internet

Productivity is the production input in relation to a unit of output, such as a worker.

• True

• False

Retail sales include?

• taxes collected

• companies buying new equipment

• borrowing by business

• school supplies bought by students

Productivity would likely increase as a result of

• higher taxes

• expanded production technology

• decreased training program

• lower interest rates

What are the main sources of personal income

• wages and salaries

• investment income

• government payments

• all of the above