Question : 6.1   Gross Domestic Product 1) The total market value of all : 1381076

6.1   Gross Domestic Product

1) The total market value of all final goods and services produced within a given period by factors of production located within a country is

A) gross domestic product.

B) gross national product.

C) net national product.

D) net national income.

2) Gross domestic product measures

A) the total spending of everyone in the economy.

B) the value of all output in the economy.

C) the total income of everyone in the economy.

D) all of the above

3) Which of the following is an example of a final good or service?

A) wheat a bakery purchases to make bread

B) coffee beans Starbucks purchases to make coffee

C) lumber purchased by a construction company to used in building houses

D) a computer purchased by Federal Express to track shipments

4) Which of the following is a good or service counted in GDP?

A) tires Ford buys to put on a car

B) a used tire you buy for your personal car

C) a new tire you buy for your personal car

D) used tires bought by a used car dealer to put on a car on his lot

5) Which of the following is an example of an intermediate good?

A) the dough you buy to fix yourself a pizza for dinner

B) the chocolate you buy to make yourself some cookies

C) the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to

D) lumber you buy to build a house for your dog

6) Double counting can be avoided by

A) including the value of intermediate goods in the current year.

B) not counting the value of intermediate goods in GDP.

C) including the value of intermediate goods in the GNP but not in the GDP.

D) including the value of intermediate goods in the production year but not in the selling year of those goods.

7) Which of the following would NOT be counted in 2013’s GDP?

A) the value of a 2008 boat you purchase from a boat dealer in 2013

B) the 2013 salary of a used motorcycle salesperson

C) the commissions earned by a real estate agent in selling condominiums built prior to 2013

D) the value of a refrigerator manufactured in 2013 but not sold in 2013

8) Which of the following would be counted in 2013’s GDP?

A) the value of a loan you take in 2013

B) the value of a TV that was produced in 2012 but not sold until 2013

C) the bonus check a stockbroker gets from his/her company in 2013

D) the value of a bond sold by the federal government

9) Which of the following is NOT included in 2013’s GDP?

A) the value of a motorcycle produced in the United States and exported to Japan

B) the profit earned in 2013 from selling a stock that you purchased in 2008

C) the value of a motor that is used in the production of a lawn mower

D) the commission earned by a headhunter when she locates a job for a client

10) Gross national product is the total market value of

A) all final and intermediate goods and service produced by resources owned by a country in a given year.

B) all final and intermediate goods and services produced in a country, regardless of who owns the resources.

C) all final goods and services produced in a country in a given year, regardless of who owns the resources.

D) all final goods and services produced by resources owned by a country, regardless of where production takes place.