Economics Chapter 12 Test

Which of the following is not a purpose for collecting national economic data?

• to determine the nation's economic progress

• to calculate appropriate income tax rates

• to assess the overall health of the nation's economy

• to evaluate the nation's success in international markets

Which of the following is designed primarily to be used as an intermediate good?

• washing machines

• real estate

• steel beams

• picture frames

Which item would be included as a final good in the GDP?

• trucks a dealership has not sold at the end of the year

• steel slabs purchased by a refrigerator manufacturer

• a house purchased by a real-estate investment firm

• vegetables raised in family gardens

Which of the following purchases would definitely not be counted in a nation's GDP?

• an apartment

• an airline ticket

• a designer gown

• a Monet painting

Which of the following categories accounts for the largest number of purchases in America?

• consumer services

• consumer durable goods

• consumer nondurable goods

• business investments

Which category of the GDP includes spending on unplanned inventories?

• consumer services

• consumer durable goods

• consumer nondurable goods

• business investments

Which category of the GDP includes spending on unplanned inventories?

• consumer services

• consumer durable goods

• consumer nondurable goods

• business investments

Which of the following would be consider a private domestic investment?

• twenty gallons of paint purchased by a homeowner

• a mill purchased by a textile company

• a copier purchased by the DMV

• two jets purchased by a foreign airliner

Which of the following activities is included in the GDP?

• buying wood for a new fence

• building a fence around your yard

• trading some leftover wood for paint

• dumping leftover paint in a landfill

Which of the following is not true of Simon Kuznets?

• He immigrated to America from the Soviet Union

• He originated the measurement of national income

• He worked as a reporter for the Wall Street Journal

• He was awarded the Nobel Prize in Economics