Econ Unit 5 Ch12 & 13

What is included when measuring a country's gross domestic product (GDP)?

• a homeowner's cost of labor when performing his or her own repairs

• a consumer's purchase of a new bicycle

• a consumer's purchase of clothes at a second-hand store

• a car manufacturer's purchase of tires for the production of a new car

Real GDP differs from current GDP by _________________________.

• 
  adjusting for inflation

• 
  factoring in nonmarket transactions

• considering the types of products made

• measuring product impact on quality of life

What does GDP tell us?

• the quality of life in a country

• what goods and services a country is producing

• how well a country’s economy is performing

• the quality of goods and services a country is producing

Gross national product (GNP) differs from GDP by measuring _________________________.

• total national income

• the depreciation of capital equipment

• circular flows of economic activity

• nonmarket transactions

What does the term disposable personal income mean?

• 
  income plus tax refunds

• 
  income before taxes are subtracted

• 
  income available after taxes are paid

• income available after taxes and debts are paid

What might happen if a nation's population grows too slowly?

• There may be a strain on the country’s infrastructure.

• There may not be enough workers to sustain economic growth.

• There may be an increased demand for consumer goods.

• 
  There may not be enough agricultural production to meet demand.

A large aging population collecting Social Security and Medicare benefits places a heavy burden on _________________________.

• retirees

• 
  families with children

• younger, working people

• families caring for elder relatives

An aging population trend is likely to be accompanied by a decline in the need for _________________________.

• 
  medical treatment

• retirement homes

• pharmaceuticals

• 
  schools

How does the federal government use poverty guidelines?

• to set the federal minimum wage

• to determine eligibility for federal programs

• to identify food budgets to keep people out of poverty

• to measure the distribution of income across households

Which group is most vulnerable to poverty?

• young adults

• 
  children under the age of 18

• people aged 65 and older

• 
  service-industry workers