TEST_The American Economy

Which of the following is an example of a service?

• A.a mobile phone

• B.a book

• C.a haircut

• D.a loaf of bread

China is the world's largest national economy.

• True

• False

Making goods and providing services create ________ for individuals in the economy.

• A.GDP

• B.market value

• C.income

• D.factors of production

Which of the following is an entrepreneur?

• A.a waiter

• B.a chef

• C.a restaurant critic

• D.a restaurant owner

The Gross Domestic Product measures the value of __________________.

• A.all intermediate goods sold in a specific country

• B.all goods and products sold during a specific year

• C.all final products produced in a country during a specific year

• D.all products produced in a country during a specific year

Which of the following is an intermediate good?

• A.a computer chip

• B.a book

• C.a greeting card

• D.a water bottle

Which transaction is counted in the GDP?

• A.the sale of a two-year-old car between private parties

• B.cooking a large dinner for your family

• C.the purchase of fabric by a furniture manufacturer

• D.the purchase of a computer mouse pad from a store

Which of the following is sold in the factor market?

• A.pants sold to a grocery store owner

• B.a computer sold to a student

• C.tools sold to a home owner

• D.the labor of a farmer

Money flows to the business sector through the ________.

• A.factor market

• B.consumer sector

• C.product market

• D.factors of production

Which sector represents companies that produce goods and services?

• A.the product sector

• B.the business sector

• C.the foreign sector

• D.the government sector