Gross Domestic Product

What is one limitation of GDP?

• It does not include intermediate goods.

• It does not show how the economy is doing over time.

• It does not include non-durable goods 

• It does not measure health and happiness

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 Menomonee Falls, Wisconsin. Where would this show up in the GDP formula?

• Consumption

• Investment

• Government Spending

• Exports-Imports

John 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

Would the following be included or not included in GDP?  Ford has 15,000 2016 Explores that were not sold by December 31^st 2017.

• Included

• Not included