POB Chapter 2.1 Review

____ is the total value of all final goods and services produced in a country during one year.

• Unemployment rate

• Gross domestic product

• Productivity

• Economic rate

Economic growth refers to a steady decrease in the production of goods and services in an economic system.

• True

• False

____ is the most widely used measure to find out how well an economy is doing.

• Inflation

• Gross Domestic Product

• Consumer Spending

• Capital Spending

GDP is the total value of all finished goods and services produced in a country during one year.

• True

• False

GDP includes which of the following categories: (select all that apply)

• Exports of a country less the imports into the country

• Inflation

• Business spending

• Consumer spending

• Government spending

_____ includes spending for food, clothing, housing, and other goods & services.

• Consumer spending

• Exports

• Business spending

• Government spending

GDP includes the value of the work that you do for yourself.

• True

• False

_____ includes spending for buildings, equipment, and inventory items.

• Consumer spending

• Inflation

• Business spending

• Productivity

Intermediate goods are included when measuring GDP.

• True

• False

Steel produced in America and sold to an American automaker would NOT be included in GDP.

• True

• False