Question : 5.1   GDP, Income, and Expenditure 1) A measure of a country’s : 1228207

5.1   GDP, Income, and Expenditure

1) A measure of a country’s production is its

A) gross daily production.

B) general daily product.

C) general domestic production.

D) gross domestic product.

E) gross total output.

2) The total production within an economy is measured as

A) Gross Home Product.

B) Total Domestic Output.

C) Annual Production Value.

D) Gross Domestic Product.

E) Total Annual Output.

3) Gross Domestic Product is equal to the market value of all the final goods and services ________ in a given period of time.

A) produced within a country

B) consumed within a country

C) consumed by the citizens of a country

D) produced by the citizens of a country

E) produced and consumed within a country

4) 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) income of the business sector within a country.

C) market value of the final goods and services produced in a given year within a country.

D) measures the market value of the domestic labor in a given year within a country.

E) market value of the final goods and services consumed by households in a given year within a country.

5) To calculate GDP it is necessary to

A) add the total amounts of all the goods produced.

B) use the market price to place a dollar value on each good produced.

C) use production cost to place a dollar value on all goods produced.

D) use the average market price over the last five years to place a dollar value on all goods produced.

E) average the cost of producing a good with the price of the good to place a dollar value on all goods produced.

6) How are final goods and services valued when measuring nominal GDP?

A) at current market prices

B) at base year prices

C) at foreign exchange parity

D) at factor market prices

E) at producer cost

7) Measuring total production by valuing items at their market value allows us to

A) separate the value of different goods with identical prices.

B) separate the value of different goods with different prices.

C) add together the value of different goods that have different prices.

D) add together the value of identical goods that have identical prices.

E) ignore the problem that goods and services differ in how long they last.

8) Wobet is a small country that produces only steak and potatoes. Steaks have a price of $10 each and potatoes have a price of $1 each. Suppose that Wobet produces 10 steaks and 20 potatoes in 2010. Using ________, Wobet has GDP equal to ________.

A) market value; 30 units

B) a market basket; 30 units

C) market value; $120

D) real value; $120

E) a price index; $120

9) To calculate GDP it is necessary to add up the market value of all the ________ produced within a country during a year.

A) goods but not services produced

B) goods and services produced

C) intermediate goods and services produced

D) final goods and services produced

E) intermediate goods and services produced and all the final goods and services produced

10) GDP is best defined as the ________ in a given time period.

A) number of goods and services produced within a country

B) number of final goods and services produced within a country

C) market value of the final goods and services produced within a country

D) market value of the final goods and services consumed by a nation’s citizens

E) market value of all the goods and services produced within a country