AP Macro 2.2 Reading Check Quiz

GDP is best used as a measurement for

• quality/standard of life.

• the total value of all new production.

• economic well-being.

• economic opportunity and outcomes.

GDP does not count 3 of these options and only count 1.

Which one does it count?

• production of final goods

• production of intermediate goods

• non-market transactions

• unreported economic activities

Which is the LEAST reliable measurement for overall quality/standard of life for people in a country?

• genuine progress indicator

  (GPI)

• human development index

  (HDI)

• gross domestic product

  (GDP)

• gross national income (GNI)

An intermediate good is a good

• which is mid-level in quality.

• which is mostly consumed by middle income households.

• that is used in the production of a final good (like a windshield for a car.)

• such as machinery for production (like a conveyor belt in a factor.)

Which of the following items would be included in a calculation of GDP?

• working in your own garden, raising chickens for eggs, and providing care for elderly family.

• the purchase of drones for the military.

• the purchase of lumber by a contractor building a new house.

• income received from selling shares of stock.