Gross domestic is the total ______ produced within a country in a given time period. - answer-market value of all final goods and services
Real GDP can be criticized as a measure of economic welfare because it: - answer-.does not take account of the degradation of environmental quality
.does no...
Econ 201- Exam Two Questions and
Answers
Gross domestic is the total ______ produced within a country in a given time
period. - answer-✔market value of all final goods and services
Real GDP can be criticized as a measure of economic welfare because it: - answer-
✔.does not take account of the degradation of environmental quality
.does not include the value of products produced in the household
.does not include leisure time available to society
(all of the above are correct)
Economists distinguish real GDP from nominal GDP to - answer-✔determine
whether real production has changed
When calculating GDP, underground economic activity is - answer-✔the part of the
economy purposely hidden
GDP declines during - answer-✔the movement from peak to trough
The base-year method of calculating real GDP compared - answer-✔quantities
produced in different years using prices from a year chosen as a reference period
Potential GDP is - answer-✔the value of production when all the nation's resources
are fully employed
, If Nike, an American corporation, produces sneakers in Thailand this would -
answer-✔add to Thailand's GDP but not to US GDP
What is not an indirect tax? - answer-✔income taxes
Business Cycles - answer-✔follow a pattern of trough, expansion, peak and
recession
What is not part of the expenditure approach to measuring GDP? - answer-✔net
interest
Personal consumption expenditures does not include - answer-✔new housing
What is not included in gross domestic investment expenditure - answer-
✔business's purchase of another company's stock
Intermediate goods are excluded from GDP because - answer-✔their inclusion
would involve double counting
Depreciation is defined as the - answer-✔decrease in the stock of capital due to
wear and tear
The largest component of GDP in the expenditures approach is - answer-✔personal
consumption expenditures
What is not included in real GDP? - answer-✔production in the home
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