Econ Test

Expectant parents buy supplies for the nursery. Would this be included in GDP?

• Yes - Consumer Spending

• Yes - Investment

• No - Intermediate goods

• No - Non-market activity

The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry. Is this included in GDP?

• Yes - Consumer spending

• Yes - Government Spending

• No - Underground Economy

• No - Non-market activity

GDP is calculated by

• adding up the cost of goods used in producing the item
• subtracting all costs from total revenue
• adding consumption + investment +government spending+ (exports sold - imports bought)

A higher GDP generally correlates to a(n) ___________ standard of living.

• higher

• lower

• unrelated

What is GDP?

• Gross Domestic Product

• Get Duties Prior

• Gross Department Power

• Gross Duties Peer

The Gross Domestic Product measured in current prices describes what?

• Real GDP

• Current GDP

• Nominal GDP

• Total GDP

What is the total value of all final goods and services produced within a country in a given time?

• NNP

• Real GDP

• Nominal GDP

• Total GDP

GDP declines during a(an)

• peak

• contraction

• expansion

GDP will begin to decline at-

• the peak.

• the trough.

• the contractionary phase.

The decline of economic activity ends.

• Expansion

• Peak

• Contraction

• Trough