Circular Flow & GDP

High levels of GDP per capita indicate...

• Higher levels of happiness 
• Higher standard of living
• Equal levels of wealth 
• Self-sufficient communities

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 

Each individual on food stamps in Florida can receive up to $194 a month. Is this included in government spending?

• Yes - Government spending

• Yes - Consumer Spending

• No - Intermediate Goods

• No - transfer payment

Output per person, calculated as real GDP divided by the total population.   

• GDP/Capita
• GDP
• Productivity  
• Investment 

Business spending on physical capital, new homes, and inventories is counted in which component of GDP?

• consumption
• investment
• government spending
• imports-exports

Which items are added together to get Gross Domestic Product?

• Consumption, government spending, net exports, and treasury bonds
• Consumption, Interest payments, government spending, and net exports
• Consumption, aggregate demand, aggregate supply, and net exports
• Consumption, investment, government spending, and net exports

If Real GDP is $300 million and the population is 10 million, what is the Real GDP per capita?

• $3,000 
• $300 
• $30 
• $5 

What are the four main parts of the circular flow diagram?

• Resource Market, Stock Market, Factor Market, Fish Market

• Resource Market, House Market, Factor Market, Good Market

• Resource Market, Product Market, Households, Firms

• Resource Market, households, Stock Market, super market

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

• Resource Market

• Product Market

• Firms

• Individuals

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model?

• Product Market

• Resource/Factor Market

• Firms

• Individuals