GDP

Which is a final product in a bakery?

• Cake
• Flour
• Eggs
• Sugar

A British company purchases a one-year membership to PartyFolks.com, a U.S. based company

• GDP increases
• GDP decreases
• No change

The U.S. Government hired 10 Chinese-language experts, from a Chinese company based in China, to train U.S. Workers.

• GDP increases

• GDP decreases

• No change

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

GDP is calculated by

• adding up the cost of goods used in producing the item
• subtracting all costs from total revenue
• adding consumption + investment +government spending+ (exports sold - imports bought)

A shoe produced in South Korea and sold in the U.S.

• Included in U.S. GDP

• Included in South Korea GDP

• Included in Canadian GDP

A higher GDP generally correlates to a(n) ___________ standard of living.

• higher

• lower

• unrelated

Is this counted in the GDP of the US?

Cars made by a Japanese company in California.

• Yes

• No

Is this counted in the GDP of the US?

The materials (lumber, cement, bricks) used to build a house.

• Yes

• No