Economic Concepts Quiz

What is the total market value of all newly produced, final products within a given period called?

• Gross Domestic Product (GDP)

• Net National Product (NNP)

• Consumer Price Index (CPI)

• Producer Price Index (PPI)

Which of the following is NOT a goal of the U.S. economic policy?

• Keep unemployment low, generally 5% or lower

• Keep inflation low, usually 1-2%

• Generate a healthy rate of economic growth, 3% or more

• Increase inflation to 5% or more

Which approach measures the total money spent on final goods and services?

• Income Approach

• Expenditure Approach

• Production Approach

• Consumption Approach

What is counted in GDP to avoid double counting?

• Only newly produced, final goods

• All goods, including intermediate goods

• Only imported goods

• Only services

Which of the following products would you count as part of the US GDP for 2018?

• A pickup truck produced by Toyota, a Japanese company, in Princeton, IN in 2018

• Computer chips for laptops that Dell buys from Advance Micro Devices in 2018

• Babysitting service that Jayson provides for his neighbor in 2018

• Softwood that the U.S. imports from Canada to produce furniture in 2018

Which sector is responsible for roughly 68% of GDP and is divided into durable and non-durable goods?

• Business Sector

• Public Sector

• Households Sector

• International Sector

What percentage of GDP is attributed to Gross Investment by the Business Sector in 2016?

• 68%

• 17%

• 18%

• 3%

Which country was the world's biggest exporter in 2018, exporting over $2.5 trillion?

• United States

• Germany

• China

• Japan

What is the main component of GDP using the income approach, comprising 58% of GDP?

• Proprietor income

• Workers’ compensation

• Corporate profit

• Indirect business taxes

What does the GDP Deflator measure?

• Total exports and imports

• Price index designed to measure changes in overall price level

• Total government spending

• Net exports