Chapter 12 Section 1 Test

What is the total price for all goods and services being sold per year

• Produced Within a Country's Borders

• Dollar Value

• NIPA

• National Income Accounting

Expenditure Approach has four categories for goods and services, what are they?

• 1. Consumer
  2. Business
  3. Farms and Ranches
  4. Net Exports or Imports

• 1. Consumer
  2. Local Government
  3. Federal Government
  4. Retail Firms

• 1. Consumer
  2. Business
  3. Government
  4. Net Exports or Imports

• 1. Military
  2. Business
  3. Government
  4. Manufactures

The Income Approach . . .

• Adds up all the income in an economy to calculate the GDP.

• Adds up all the total lost in revenue from an economy to calculate the GDP.

• Subtracts total lost from total gains to calculate the GDP.

• Takes an average total gain in income in an economy to calculate the GDP.

What is NOT a limitations of GDP?

• Nonmarket Activities

• The Underground Economy

• Quality of Life

• Permits

"The real value of money rises as price levels..."

• Drop

• Rise

• Do Nothing

• Stay steady

A system that collects macroeconomic statistics on production, income, investment and savings.

• National Income Accounting

• Intermediate Goods

• Nominal GDP

• Production

Gross Domestic product (GDP)

• The value of an economy's goods and services in a given year.

• An expression of goods and services based off number of sales.

• The dollar value of all final goods and services produced within a country's borders in a given year.

• Any profit made for any group of entity.

The yearly income made by U.S. owned firms and citizens.

• Nation Income (NI)

• Gross Domestic Product (GDP)

• Economic Profit

• Gross National Product (GNP)

Price Level

• The average of all prices in the economy.

• The relative minimum of all price in the economy.

• The mean of all prices in the economy.

• The price you think an item should be priced.

The amount of goods and services in the economy that will be purchased at all possible price levels.

• Depreciation

• Aggregate Demand

• Aggregate Supply

• Net Price