Gross Domestic Product

What is the Gross Domestic Product (GDP)?

• The total market value of all final goods and services produced within a country's borders in a given period of time.

• The total income earned by a nation's companies overseas.

• The sum of all wages paid to employees in a country.

• The total amount of money a country owes to creditors.

Which of the following is an example of a final good as defined in the Gross Domestic Product?

• Cow parts (inputs)

• Cheeseburger (output)

• Automobiles for resale

• Steel used in car production

According to the GDP definition, what does "...within a country..." refer to?

• Only the production by the country's government

• Only the production by foreign companies within the country

• The production within a country's borders, regardless of the company's origin

• The production by the country's companies, regardless of their location

When you pay $9.99 a month for Netflix, which part of GDP does it indicate?

• Investment spending

• Government spending

• Consumption spending

• Not counted in GDP

What is an example of a nonmarket transaction that is not included in GDP?

• Amazon builds a new warehouse

• Roads and Bridges

• Babysitting, mowing the lawn, chores, etc.

• US soybeans export

Which of the following is an example of a second-hand sale that is not included in GDP?

• Buying a cheeseburger

• A used video game sold on eBay

• Amazon builds a new warehouse

• Japanese cars import

What is an example of a transfer payment that is not included in GDP?

• Social security

• Buying a cheeseburger

• Amazon builds a new warehouse

• Roads and Bridges

How is Nominal GDP different from Real GDP?

• Nominal GDP is adjusted for inflation, whereas Real GDP is not.

• Nominal GDP is not adjusted for inflation, whereas Real GDP is.

• Nominal GDP and Real GDP are the same.

• Real GDP is always higher than Nominal GDP.

Which of the following is considered the best measure of a nation's standard of living?

• Nominal GDP

• Real GDP per capita

• GDP Deflator

• Total population

What is a Business Cycle?

• A bicycle used for business purposes

• A set of processes within a business organization

• Economy-wide fluctuations in a market or economy over several months or years

• A cycle of business meetings and conferences