11. Which of the following is not counted as a part of GDP? A. the purchase of 100 shares of AT&T stock by your grandfather. B. the purchase of a snow plough by the city of Minneapolis. C. the unsold additions to inventory at an appliances store D. the purchase of a loaf of bread by a consumer 12. Which of the following is not included in GDP? A the payments for a chiropractor’s services B. cash income paid to a day laborer that is not reported to the tax authorities C. the replacement of brake pads on your six-year-old vehicle D. the fees for legal services rendered by your lawyer 13. To compare the GDP of two different countries with different currencies, it is necessary to use A an exchange rate B. foreign currency C. currency rates D per capita GDP 14. Which of the following is included in GDP calculations? A sales revenue received from a yard sale B. cash income received by a self-employed landscaper that is not reported to the IRS C. a crisp $50 bill received on your birthday D. the university tuition paid to enroll in a course 15. GDP does not directly include: A the value of goods produced domestically and sold abroad. B. the value of intermediate goods sold during a period. C the value of services rendered during a period. D. the value of final goods and services produced, but not sold, during a period
1. GDP is: A the sum of all currency and coins in circulation. B. the value of all final goods and services produced by a govemment. C. the value of all final good and services produced anywhere in the world by a nation’s firms. D. the value of all final goods and services produced domestically. 2. Consumption in the United States is abouto of GDP, and it moves relatively little over time. A 10% B. 33% C. 68% D. 90% 3. The demand measure of GDP accounting adds together A wages and salaries, rent, interest, and profit. B. consumption, investment, government purchases, and trade balance C. consumption, government purchases, wages and salaries, and trade balance. D. consumption, interest, government purchases, and trade balance. 4. Consumption is the purchase of goods and services by A households. B. government. C. business firms. D. foreign buyers 5. Which of the following are most likely classified by economists as consumer durable goods? A. food, clothing B. drugs, toys, magazines, books C. automobiles, furniture D. stocks, bonds
6. Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then: A exports exceed imports by $50 billion. B. imports exceed exports by $50 billion. C imports exceed exports by $150 billion. D. exports exceed imports by $150 billion. 7. The value of what businesses provide to other businesses is captured in the final products at the end of the chain. A. service B. value C. production D. supply 8. is a small category that refers to the goods produced by one business that have yet to be sold to consumers, and are either still sitting in warehouses and on store shelves A Inventories B. Services C Structures D. Durable goods 9. In order to avoid double counting, statisticians just count the A. final inventories B. final goods and services C. intermediate goods and services D. durable goods and nondurable goods 10. Which of the following is included in the calculated Gross Domestic Product? A Farmer Freddie sells his second tractor to his son. B. Suzanne buys a love seat and chair for $85 at the yard sale on the corner. C. A local ice cream D. Mr. Farkle buys a used lawn mower from his neighbor, Mr. Sparkle store sells $17,000 worth of cones and sundaes on July 1.
11 A. GDP does not include purchase of shares. It includes
additions to physical stock.
12. B. Unreported transactions are not included in GDP.
13. A. An exchange rate. Exchange rate is the value of a
country’s currency in terms of another country’s currency.
14. D.The tuition paid to enroll in a course. GDP includes the
economic value of all final goods and services produced in a given
year in a country. Sale of used goods, unreported transactions and
gifts which do not add economic value are excluded.