Ch. 12 GDP Quiz

Why are intermediate goods excluded from GDP calculations?

• because their value is included in the final product.

• because those products are services not goods

• because GDP measures output on a local level

• they are not excluded from GDP calculations

Which of these is an example of a non-market transaction?

• babysitting as a favor to a family friend

• maintaining a newspaper route

• buying lunch at McDonalds

• paying a consultant for business advice

Which of the following would be considered Investment spending that increases GDP?

• A florist buys a larger Refrigerator for storing flowers

• The government buys combat boots for the military

• A senior in high school buys a mum for his homecoming date.

• A florist buys 100 glass vases for floral arrangements

Which of the following would be EXCLUDED from GDP calculations

• U.S. company imports satin from Vietnam to make pillow cases

• U. S. toy manufacturer exports toys to Franc

• Department of Homeland Security buys computers from Dell

• The Secret Service buys 20 brand new Chevrolet Suburban

If nominal GDP increases by 15% and the prices have increased 4%, how much has real GDP increased?

• 11%

• 19%

• 15%

• 4%

Which of the following would decrease a county's GDP?

• more Canadians visiting the U.S.

• increased retail sales during November and December

• less demand for new automobiles

• Many businesses move manufacturing jobs back to the U.S.

GDP expressed in current year dollar values is called __________ GDP.

• nominal

• real

• net

• actual

GDP expressed in constant, unchanging dollar values is called ________ GDP.

• real

• nominal

• net

• actual

Which of the following gives the phases of the business cycle in the correct order?

• Peak, contraction, trough, expansion

• Peak, contraction, expansion, trough

• Expansion, contraction, peak, trough

• Expansion, peak, trough, contraction

Which of the following would cause the economy to go into the expansion phase of the business cycle?

• The country is at war

• Stock market crash

• Housing market declines

• Consumers cut back on spending