Unit 6: Standard #1 GDP

Business spending on physical capital, new homes, and inventories is counted in which component of GDP?

• consumption

• investment

• government spending

• imports-exports

The total dollar value of all final goods and services produced within the country’s border in a given year after inflation is taken out of the data.

• Nominal GDP

• GDP/capita

• Gross GDP

• Real GDP

The village of Menomonee Falls purchases a new fire truck. Where would this show up in GDP formula?

• Consumption

• Investment

• Government Spending

• Exports-Imports

You buy some Toblerone chocolate manufactured in Switzerland. Where would this show up in the GDP formula?

• Consumption

• Investment

• Government Spending

• Exports-Imports

The U.S. government agency NASA contracts with a firm in Alabama to provide parts for the space station. Where would this show up in the GDP formula?

• Consumption

• Investment

• Government Spending

• Exports-Imports

Costco builds a new store in Fayetteville, GA. Where would this show up in the GDP formula?

• Consumption

• Investment

• Government Spending

• Exports-Imports

Jaylen went to Sports Clips and purchased a haircut. Where would this show up in the GDP formula?

• Consumption

• Investment

• Government Spending

• Exports-Imports

Would the following be included or not included in GDP? The purchase of a new tractor by a farmer

• Included

• Not included

Would the following be included or not included in GDP? The purchase of a used tractor by a farmer.

• Included

• Not included

Remember: there are four "pieces" of GDP: C, I, G, and Nx. When the owner of a snow cone business buys more ice for his machine, which piece is affected?

• C

• I

• G

• (Ex-Im)