AP ECONOMICS GDP REVIEW

Gross Domestic Product measures the 

• quantity of the goods and services produced in a given year, listed item by item, within a country.
• market value of the final goods and services produced in a given year within a country.
• measures the market value of the domestic labor in a given year within a country. 
• market value of the final goods and services consumed by households in a given year within a country.

Which of the following is a final good or service? 

• tires purchased by Ford for use on one of their SUV's 
• the new economics textbook you are using
• the hair gels used by a hair stylist at the local hair salon 
• the taco shells purchased by Taco Bell for use in their tacos 

Gross Private Investment is defined as the purchase of

• any financial asset only.

• additions to inventories only.

• financial assets and inventories only.

• the purchase of new capital goods and additions to inventories.

The purchase of stocks and bonds is 

• included in GDP as investment. 
• included in GDP as a consumption expenditure. 
• not included in GDP as investment. 
• not included in GDP because these are intermediate goods.

Net exports of goods and services is defined as equal to

• the value of exports of goods and services minus the value of imports of goods and services.
• U.S. sales of goods and services to the rest of the world. 
• U.S. purchases of goods and services from the rest of the world.
• the value of imports of goods and services minus the value of exports of goods and services. 

Which of the following expenditure components of GDP can be negative or positive?

• Consumption expenditures. 
• Investment expenditures.
• Government purchases of goods and services.
• Net exports of goods and services.
  

In order to measure gross domestic product, we can follow

• only one approach: the circular flow approach.
• two approaches: the expenditure approach and the income approach.
• three approaches: the expenditure approach, the income approach, and the production approach.
• three approaches: the expenditure approach, the income approach, and the market-based approach. 

The expenditure approach to measuring GDP is done by using data on only

• consumption expenditure and investment.
• consumption expenditure, investment, government expenditures on goods and services, and net exports of goods and services.
• consumption expenditure, investment, and government expenditures.
• wages, rent, interest, and profit.

The Gross Domestic Product measured in current prices describes what?

• Real GDP

• Current GDP

• Nominal GDP

• Total GDP

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