Gross Domestic Product

Expectant parents buy supplies for the nursery. Would this be included in GDP?

• Yes - Consumer Spending

• Yes - Investment

• No - Intermediate goods

• No - Non-market activity

GDP is calculated by

• adding up the cost of goods used in producing the item
• subtracting all costs from total revenue
• adding consumption + investment +government spending+ (exports sold - imports bought)

A higher GDP generally correlates to a(n) ___________ standard of living.

• higher

• lower

• unrelated

Is this counted in the GDP of the US?

A new home that was recently built.

• Yes

• No

In which part of the GDP calculation does this fit?

You spend $15 at AMC to see the latest Avengers movie.

• Consumer spending

• Government spending

• Investment spending

• Net exports

In which part of the GDP calculation does this fit?

The US military spends $5 billion on five new helicopters.

• Consumer spending

• Government spending

• Investment spending

• Net exports

What is the total value of all final goods and services produced in the economy in a given year?

• Unemployment rate

• Supply and Demand

• GDP

• Communism

Which of the following are NOT in GDP:

• Secondhand Sales

• Retail Service

• Intermediate Goods

• Illegal Products

• all

The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry. Is this included in GDP?

• Yes - Consumer spending

• Yes - Government Spending

• No - Underground Economy

• No - Non-market activity

Costco builds a new store in Noblesville, Indiana. Where would this show up in the GDP formula? (GDP=C+I+G+(X-M))

• Consumption (Consumer)

• Investment (Business)

• Government Spending

• Exports-Imports