1. Gross Domestic Product measures which of the following?
A. Total output produced by one firm.
B. Total output produced by GM.
C. Total output produced by the government.
D. Total output produced within a country.
2. The measure of total output is considered a
A. Quantitative measure.
B. Qualitative measure.
C. Comprehensive characteristic measure.
D. Non-numeric measure.
3. In the circular flow diagram income is received in which of the following markets?
A. The goods markets.
B. The output markets.
C. The factor markets.
D. The product markets.
4. In the circular flow diagram expenditure is made in which of the following markets?
A. The resource markets.
B. The factor markets.
C. The input markets.
D. The goods markets.
5. In calculating GDP which of the following is correct?
A. Income must be equal to the factors of production.
B. Income must be equal to expenditure.
C. Income must be equal to resources.
D. Income must be equal to inputs.
6. Income represents which of the following?
A. Aggregate supply.
B. Aggregate demand.
C. Aggregate expenditure.
D. Aggregate spending.
7. If net exports is positive then
A. GDP will be smaller.
B. GDP will be the same.
C. GDP will be bigger.
D. GDP will be lower.
8. Total income generated in production must be equal to
A. The value of total raw materials.
B. The value of total non-physical inputs.
C. The value of total goods produced.
D. The value of total implicit inputs.
9. Omissions from GDP include
A. Market activities.
B. Paint bought at a paint store.
C. Tires bought at a tire shop.
D. Manhours used to produce output.
10. Actual physical output produced in the economy is
A. Real GDP.
B. Nominal GDP.
C. Quantitative GDP.
D. Inflation unadjusted GDP.