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ECON FINAL STUDY GUIDE
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ECON FINAL STUDY GUIDE
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ECON FINAL STUDY GUIDEThe most commonly used measure of an economy's output is - answer- gross domestic product
Gross domestic product (GDP) equals the ______ of final ______ produced within a country during a given period of time. - answer- market value; good and services
The market value of final goods and services produced within a country during a period of time is called: - answer- gross domestic product
GDP is a measure of an economy's - answer- total output
______ is/are the market value of final goods and services produced within a country during a given period of time. - answer- GDP
The value of unpaid childcare services provided by a stay-at-home dad ______ included
in GDP; the value of daycare services purchased from a licensed childcare provider ______ included in GDP. - answer- is not; is
Goods and services provided by state and local governments are: - answer- included in GDP at cost.
National defense services provided by the military are: - answer- included in GDP at cost
If an automobile manufacturer pays $200 for a car windshield, $400 for four car tires, $100 for a car CD player, and sells cars made with these parts for $20,000, then each car the automobile manufacturer sells contributes how much to GDP? - answer- $20,000
If Bountiful Orchard grows $100,000 worth of peaches, sells $50,000 worth of peaches to consumers and uses to rest to make jam that is sold to consumers for $100,000, Bountiful Orchard's contribution to GDP is: - answer- $150,000
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process:
What is the value added of Florida Jam Company? - answer- $1.25 To find value added you have to subtract cost of purchased inputs from the revenues.
Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process:
What is the value added of Fulton Family Farm? - answer- $.50
To find value added you have to subtract cost of purchased inputs from the revenues. Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process:
What is the value added of Friendly Groceries? - answer- $1.50
To find value added you have to subtract cost of purchased inputs from the revenues.
The four categories of final users of GDP are: - answer- households, firms, governments, and the foreign sector
Total spending on final goods and services in an economy must equal total: - answer- production value
Which of the following expenditures would increase the consumption component of U.S.
GDP? - answer- you buy a pizza
investment spending includes spending on - answer- new capital goods
investment spending includes spending on: - answer- capital goods, residential housing,
and changes in inventories
Which of the following would increase the investment component of U.S. GDP? - answer- A laundry in Seattle purchases a new clothes-washing machine produced in the US
Net exports equal - answer- exports minus imports
Which of the following would increase the net export component of U.S. GDP? - answer- A bottle of California wine is purchased in London
The following table provides data for an economy in a certain year.
Consumption expenditures
1,000
Imports
600
Government purchases of goods and services
700
Construction of new homes and apartments
500
Sales of existing homes and apartments
600
Exports
500
Government payments to retirees
200
Household purchases of durable goods
300
Begining-of-year inventory
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