Measuring A Nation's Income-A

Gross Domestic Product is the sum of the market value of the

• intermediate goods.

• final goods and services

• manufactured goods

• inferior goods and services

• normal goods and services.

For an economy as a whole, income equals expenditure because the income of the seller must be equal to the expenditure of the buyer.

• True

• False

The production of an apple contributes more to GDP than the production of a gold ring because food is necessary for life itself

• True

• False

An example of a transfer payment is

• profit

• rent

• unemployment benefits

• government purchases

• wages

New home construction is included in the consumption component of GDP.

• True

• False