1. Which of the following is a macroeconomic topic?
A. The study of how households and business make choices B. The study of how households and business interact in markets C. The study of how the government attempts to influence the choices of household and businesses D. The study of how fast prices in general are increasing.
2. Gross Domestic Product is defined as
A. personal consumption expenditures and gross private domestic investment
B. the market value of final goods and services produced within a country in one year
C. the sum of wage and salary compensation of employees, corporate profits, and interest income
D. the market value of all goods and services (final and intermediate) produced by the economy in a year
3. If we add up the value of every final good and service produced in the economy, we must get a total that is exactly equal to the value of
A. Investment
B. net national product
C. all of the income in the economy
D. Disposable personal Income
4. Which of the following in counted in this year’s GDP?
A. Only goods that are produced and also sold within the country
B. Only this year’s production of goods and services
C. New goods produced and sold this year plus the value of used goods resold this year
D. This year’s production of goods and services added to the value of GDP last year
5. To include in GDP the value of the parts used in producing a car along with the value of the car would be an example of
A. Secondhand sales
B. a noninvestment transaction
C. multiple counting
D. depreciation
6. Which of the following terms is opposite of the term “final goods” in the definition of GDP?
A. Partial goods B. Intangible goods
C. Unfinished goods
D. Intermediate goods
7. Which would be considered an investment in the context of national income accounting according to economists
A. the purchase of newly issued shares of stock in Microsoft
B. the construction of a new computer chip factory by Intel
C. the resale of stock originally issued by the General Motors Corporation
D. the sale of retail department store building by Sears to Walmart