ECON 104 GOFFE PSU
Economic growth in the 2nd quarter of this year was about_____.
a. 1%
b. 2%
c. 3%
d. 4% - Answer- 4%
How does capital show up in GDP?
a. as something owned by households
b. as something owned by firms
c. as something purchased by households
d. as something produced by firms - Answer- as something produced by firms
T or F: Every time the government writes a check that expense shows up in GDP.
a. True
b. False - Answer- False
Since 1970, real GDP_____.
a. decreased most years
b. decreased some years
c. never decreased - Answer- decreased some years
Taxes were recently _____ and this _____ economic growth.
a. increased, speeded
b. increased, slowed
c. cut, speeded
d. cut, slowed - Answer- cut, speeded
Say that instead of mowing your own yard you hired a company to do it. As a result,
GDP would _____.
a. rise
b. stay the same
c. fall - Answer- rise
Is it possible for an item to be in real GDP but not nominal GDP?
a. yes
b. no - Answer- no
, Which of the following would NOT be counted in U.S. GDP?
a. apples that a household purchased
b. a Netflix movie made in the U.S. but streamed in China
c. an apple pie a mom baked for her kids
d. Honda producing a new car - Answer- an apple pie a mom baked for her kids
If nominal GDP was growing faster than real GDP, what could you infer or determine?
a. that prices might be falling
b. that prices must be falling
c. that prices might be rising
d. that prices must be rising - Answer- that prices must be rising
Which would be the opposite of an expansion?
a. a recession
b. inflation
c. the business cycle
d. economic growth - Answer- a recession
Which of the following is NOT investment?
a. shoes that a shoe store owns to sell to its customers
b. you buying a house that was just built
c. a restaurant buying and saving beer to sell to customers
d. Samsung bringing a new tool to make manufacture phone - Answer- shoes that a
shoe store owns
What distinguishes a final good from an intermediate good?
a. all final goods are capital goods
b. only consumers buy intermediate goods
c. an intermediate goods is altered into something else
d. only firms buy final goods - Answer- an intermediate good is altered into something
else
GDP is measured in which of the following ways?
a. the number of new items produced
b. the dollar value of items produced - Answer- b. the dollar value of items produced
Which of the following is the best example of capital?
a. steel that is made into cars in an automobile factor
b. stock in Apple that is traded on Wall Street
Economic growth in the 2nd quarter of this year was about_____.
a. 1%
b. 2%
c. 3%
d. 4% - Answer- 4%
How does capital show up in GDP?
a. as something owned by households
b. as something owned by firms
c. as something purchased by households
d. as something produced by firms - Answer- as something produced by firms
T or F: Every time the government writes a check that expense shows up in GDP.
a. True
b. False - Answer- False
Since 1970, real GDP_____.
a. decreased most years
b. decreased some years
c. never decreased - Answer- decreased some years
Taxes were recently _____ and this _____ economic growth.
a. increased, speeded
b. increased, slowed
c. cut, speeded
d. cut, slowed - Answer- cut, speeded
Say that instead of mowing your own yard you hired a company to do it. As a result,
GDP would _____.
a. rise
b. stay the same
c. fall - Answer- rise
Is it possible for an item to be in real GDP but not nominal GDP?
a. yes
b. no - Answer- no
, Which of the following would NOT be counted in U.S. GDP?
a. apples that a household purchased
b. a Netflix movie made in the U.S. but streamed in China
c. an apple pie a mom baked for her kids
d. Honda producing a new car - Answer- an apple pie a mom baked for her kids
If nominal GDP was growing faster than real GDP, what could you infer or determine?
a. that prices might be falling
b. that prices must be falling
c. that prices might be rising
d. that prices must be rising - Answer- that prices must be rising
Which would be the opposite of an expansion?
a. a recession
b. inflation
c. the business cycle
d. economic growth - Answer- a recession
Which of the following is NOT investment?
a. shoes that a shoe store owns to sell to its customers
b. you buying a house that was just built
c. a restaurant buying and saving beer to sell to customers
d. Samsung bringing a new tool to make manufacture phone - Answer- shoes that a
shoe store owns
What distinguishes a final good from an intermediate good?
a. all final goods are capital goods
b. only consumers buy intermediate goods
c. an intermediate goods is altered into something else
d. only firms buy final goods - Answer- an intermediate good is altered into something
else
GDP is measured in which of the following ways?
a. the number of new items produced
b. the dollar value of items produced - Answer- b. the dollar value of items produced
Which of the following is the best example of capital?
a. steel that is made into cars in an automobile factor
b. stock in Apple that is traded on Wall Street
