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WorksheetsEcon: Chapter 13 Gross Domestic Product
Total questions: 15
Worksheet time: 8mins
Name
Class
Date
1.
Gross Domestic Product measures the
a)
quantity of the goods and services produced in a given year, listed item by item, within a country.
b)
market value of the final goods and services produced in a given year within a country.
c)
measures the market value of the domestic labor in a given year within a country.
d)
market value of the final goods and services consumed by households in a given year within a country.
2.
If you make dinner for yourself
a)
the market value of your dinner is added to GDP.
b)
your service in preparing the meal is valued at a cook's wage and added to GDP.
c)
none of what you bought to prepare for dinner is included in GDP.
d)
only the market value of ingredients that you purchased this year is added to GDP.
3.
Honda has an assembly plant for Civics in Ohio. The production of U.S.-made Civics is
a)
added to U.S. GDP.
b)
added to Japan's GDP because Honda is a Japanese company.
c)
not included in either the U.S. or Japanese GDP.
d)
added to U.S. GDP only if the Civic is sold in the United States in the year it is produced.
4.
Which of the following is a final good or service?
a)
the grilled chicken purchased by Taco Bell for use in their burritos
b)
a new replacement muffler installed by Midas Mufflers
c)
the fertilizer purchased by Royal Lawn and Landscape
d)
the computers purchased by Office Depot for sale to its customers
5.
Which of the following is a final good or service?
a)
tires purchased by Ford for use on one of their SUV's
b)
the new economics textbook you are using
c)
the hair gels used by a hair stylist at the local hair salon
d)
the taco shells purchased by Taco Bell for use in their tacos
6.
Consumption expenditures are defined as spending on goods and services by
a)
households, businesses and government.
b)
businesses and government.
c)
households.
d)
households and businesses.
7.
Investment is defined as the purchase of
a)
any financial asset only.
b)
additions to inventories only.
c)
financial assets and inventories only.
d)
the purchase of new capital goods and additions to inventories.
8.
The purchase of stocks and bonds is
a)
included in GDP as investment.
b)
included in GDP as a consumption expenditure.
c)
not included in GDP as investment.
d)
not included in GDP because these are intermediate goods.
9.
Net exports of goods and services is defined as equal to
a)
the value of exports of goods and services minus the value of imports of goods and services.
b)
U.S. sales of goods and services to the rest of the world.
c)
U.S. purchases of goods and services from the rest of the world.
d)
the value of imports of goods and services minus the value of exports of goods and services.
10.
Which of the following expenditure components of GDP can be negative or positive?
a)
Consumption expenditures.
b)
Investment expenditures.
c)
Government purchases of goods and services.
d)
Net exports of goods and services.
11.
In order to measure gross domestic product, we can follow
a)
only one approach: the circular flow approach.
b)
two approaches: the expenditure approach and the income approach.
c)
three approaches: the expenditure approach, the income approach, and the production approach.
d)
three approaches: the expenditure approach, the income approach, and the market-based approach.
12.
When calculating GDP, purchases of used goods are
a)
included at the original price.
b)
included by taking the original price and subtracting the (current) used price.
c)
included at the (current) used price.
d)
not included.
13.
The purchase of the financial assets, such as stocks and bonds, is not included in GDP because
a)
they don't represent the production of goods or services.
b)
they are too expensive.
c)
taxes are paid on them.
d)
brokerage firms don't want them to be included.
14.
The expenditure approach to measuring GDP is done by using data on only
a)
consumption expenditure and investment.
b)
consumption expenditure, investment, government expenditures on goods and services, and net exports of goods and services.
c)
consumption expenditure, investment, and government expenditures.
d)
wages, rent, interest, and profit.
15.
Real GDP measures the value of goods and services produced in a given year valued using
a)
base year prices.
b)
base year prices.
c)
future prices.
d)
real rather than nominal prices.
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