Econ quiz 7 &8

GDP is the market value of:

• all final goods and services produced in an economy in a given year.

• ball expenditures on natural resources, labor, and capital goods in an economy in a given year.

• all expenditures on consumption, investment, and net exports in an economy in a given year.

• all intermediate goods and services produced in an economy in a given year.

Net exports is a positive number when:

• a nation's exports of goods and services exceed its import.

• gross private domestic investment is greater than depreciation

• depreciation is greater than gross private domestic investment.

• a nation's import of goods and services exceed its exports

GDP in an economy is $4600 billion. Consumer expenditures are $3500 billion, government purchases are $900 billion, and gross private domestic investment is $400 billion. Net exports are:

• -$200 billion.

• +$400 billion

• • -$400 billion

• +$200 billion

GDP measured using current prices is called:

• nominal GDP.

• real GDP.

• constant GDP

• deflated GDP

GDP tends to underestimate the productive activity in the economy because it excludes the value of output from:

• The underground economy.

• public transfer payments to households.

• the consumption of fixed capital.

• intermediate goods.

What is one major measure of economic growth?

• Changes in real GDP or change in real GDP per capita.

• The rise in the price level.

• The fall in the rate of unemployment.

• Changes in interest rates.

A supply factor in economic growth would be:

• an increase in the quantity of labor.

• a fall in the efficient use of resources.

• a rise in the rate of resource depletion.

• an increase in consumption spending

Which is NOT a supply factor in economic growth?

• An efficient allocation of resources

• Natural resources.

• The quantity and quality of labor.

• Technological knowledge.

Which is best considered a efficiency factor in economic growth?

• The full employment of resources.

• The quantity of human resources.

• The quality of human resources.

• The quantity of natural resources.

The single most important source of productivity for economic growth for the United States has been:

• technological advance.

• improved resource allocation.

• education and training

• economies of scale