Economic Final Practice Part 2

What is the definition of GDP?

• The total dollar value of all goods and services produced in a country in a year

• The total number of goods produced in a country in a year

• The total value of exports in a country in a year

• The total value of imports in a country in a year

Which is the largest component of GDP?

• Investment

• Government spending

• Consumption (consumer spending)

• Net export

What do you need to be counted for GDP?

• Used goods

• Finished product (not parts)

• Underground economy

• Imported goods

Which of the following would be considered consumption?

• A family purchases a used car for $10,000

• A family purchases a new home for $110,500

• You spend $8.00 to attend a movie

• A bartender earns $200 in tips

Which of the following would be considered investment?

• A family purchases a used car for $10,000

• Ford purchased a new machine for $110,500

• The government increased defense expenditures by $450 million

• A bartender earns $200 in tips

Which of the following would be considered government spending?

• A family purchases a used car for $10,000

• A family purchases a new home for $110,500

• The government increased defense expenditures by $450 million

• A bartender earns $200 in tips

Which of the following would NOT be counted in GDP measurements?

• You spend $8.00 to attend a movie

• A family purchases a used car for $10,000

• A family purchases a new home for $110,500

• The government increased defense expenditures by $450 million

How many dollars would be recorded in 1998 GDP?

• $18,400

• $100

• $527

• $240

How many dollars would be recorded in 2000 GDP?

• $18,400

• $100

• $527

• $240

How many dollars would be recorded in 2002 GDP?

• $18,400

• $100

• $527

• $240