AP Macroeconomics Unit 2 Progress Check: MCQ Questions And Answers
11 views 0 purchase
Course
AP Macroeconomics
Institution
AP Macroeconomics
AP Macroeconomics Unit 2 Progress Check:
MCQ Questions And Answers
Which statement is true about the approaches used to measure the value of a nation's gross
domestic product (GDP) ?
A) The expenditure approach to calculating GDP sums the components of the supply side of the
economy.
B) Th...
AP Macroeconomics Unit 2 Progress Check:
MCQ Questions And Answers
Which statement is true about the approaches used to measure the value of a nation's gross
domestic product (GDP) ?
A) The expenditure approach to calculating GDP sums the components of the supply side of the
economy.
B) The income approach to calculating GDP sums the income earned by the factors of
production excluding profits.
C) The value-added approach to calculating GDP sums the final monetary value of output at each
stage of production.
D) The expenditure approach to calculating GDP sums the market value of all final goods and
services produced by foreigners in a given period of time.
E) The expenditure approach to calculating GDP sums consumption spending, investment
spending, government spending, and net exports. E) The expenditure approach to
calculating GDP sums consumption spending, investment spending, government spending, and
net exports.
Correct. The expenditure approach to calculating GDP sums the components of the demand side
of the economy - consumption spending, investment spending, government spending, and net
exports.
, AP Macroeconomics Unit 2 Progress Check:
MCQ Questions And Answers
Calculate Country X's nominal gross domestic product (GDP) for 2017 using the expenditures
approach.
A) 14 billion dollars
B) 18 billion dollars
C) 19 billion dollars
D) 20 billion dollars
E) 21 billion dollars C) 19 billion dollars
Correct. The expenditure approach to calculating GDP sums consumption spending, government
spending, investment spending, and net exports. Using the numbers provided in the table, the
country's nominal GDP for 2017 is therefore 13+3+4+(−1)=19 billion dollars.
Which of the following describes a limitation of gross domestic product (GDP) ?
A) It overstates the value of output by counting non-market transactions such as mowing your
neighbor's lawn.
B) It understates the value of output by accounting for negative environmental side effects of
production.
C) It does not account for the distribution of income in a nation or income inequality.
D) It overstates economic well-being by including all do-it-yourself activities.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller UpperClass. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.49. You're not tied to anything after your purchase.
