BUS 2-4 Gross Domestic Product (GDP)

What is "Double Counting" in economic terms?

• When an item is counted only once in GDP calculations.

• When an item is accounted for more than once.

• When an item is not counted at all.

• When an item is counted twice intentionally.

Which of the following is considered a "Durable Good"?

• Fast food

• Shampoo

• Smartphone

• Coffee

What is the definition of "Gross Domestic Product (GDP)"?

• The total market value of all intermediate goods and services an economy produces.

• The total market value of all final goods and services an economy produces within a country's borders.

• The total market value of all goods and services produced globally.

• The total market value of all goods and services produced by a country's citizens.

What does "Net Exports" refer to in economic terms?

• A country's total imports minus its total exports.

• A country's total exports minus its total imports.

• The total value of goods produced domestically.

• The total value of goods consumed domestically.

Which of the following is an example of "Nondurable Goods"?

• Cars

• TVs

• Deodorant

• Soccer balls

What is "Per Capita GDP"?

• GDP divided by the number of employed people.

• GDP divided by a country's population.

• GDP divided by the number of companies.

• GDP divided by the number of households.

What is a "Trade Deficit"?

• When a country's exports exceed its imports.

• When a country's imports exceed its exports.

• When a country's imports and exports are equal.

• When a country has no imports or exports.

Which of the following is an example of "Transfer Payments"?

• Salary payments

• Payments for goods and services

• Unemployment compensation

• Investment returns

What is the "Underground Economy"?

• The part of the economy that is fully taxed and regulated.

• The part of the economy that is unrecorded and untaxed.

• The part of the economy that deals with legal goods only.

• The part of the economy that is subsidized by the government.

What is "Inflation"?

• The decrease in the general level of prices in an economy.

• The increase in the general level of prices in an economy.

• The stabilization of prices in an economy.

• The fluctuation of prices in an economy.