Measuring the Economy: Gross Domestic Product

What is the main measure of the size of a nation's economy?

• Gross Domestic Product (GDP)

• Market Value

• Final Good

• Intermediate Goods

GDP is an economic indicator that measures a country's total ______ output.

• economic

• political

• social

• cultural

What does 'market value' mean in the context of GDP?

• The price buyers are willing to pay for a good or service in a competitive marketplace

• The total number of goods produced

• The value of intermediate goods

• The value of goods exported

A ______ is any new good that is ready for use by a consumer.

• final good

• raw material

• intermediate good

• unfinished product

Intermediate goods are included in the market value of GDP.

• True

• False

To be included in GDP, where must goods and services be produced?

• Within the country's borders

• Outside the country's borders

• In any country with trade agreements

• In international waters

How often does the Bureau of Economic Analysis calculate GDP?

• Every year

• Every month

• Every quarter

• Every week

What is the formula economists use to calculate GDP? GDP = ___ + ___ + ___ + ___

• GDP = C + I + G + NX

• GDP = C + S + G + NX

• GDP = C + I + T + NX

• GDP = C + I + G + TX

According to Figure 13.2A, what was the value of household consumption (C) in the U.S. GDP for the year 2010?

• $10.3 trillion

• $8.5 trillion

• $12.1 trillion

• $9.7 trillion

Which component of GDP consists of goods and services bought by people in households for personal use?

• Business investment

• Government purchases

• Household consumption

• Net exports