GDP, Business Cycle, And Standard Of Living Question Preview (ID: 40680)


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Exports are goods and services that are produced in other countries, then brought to the United States in trade.
a) True
b) False
c)
d)

GDP is the value of all final goods and services produced within a countries borders in a given period of time.
a) True
b) False
c)
d)

Government spending, such as food assistance, Social Security, and Medicaid are included in GDP.
a) True
b) False
c)
d)

A business cycle will affect all states, people, and businesses equally.
a) True
b) False
c)
d)

GDP does not include household production, such as a garden producing vegetables or sewing your own clothing.
a) True
b) False
c)
d)

Which of the following is NOT included in GDP?
a) person buying a new stereo
b) government funding schools
c) business increasing inventory
d) black market sales of ivory

What is GDP per capita?
a) GDP + Population
b) GDP X Population
c) GDP / Population
d) GDP - Population

During a recession, interest rates are...
a) falling
b) starting to rise
c) rising
d) reaching its highest point and then falling

During a depression, consumer spending is...
a) at its lowest
b) rising
c) rising on all items
d) falling

What are fluctuations reflecting the rise and fall of economic activity relative to long term growth trend in the economy?
a) gross domestic product
b) business cycle
c) consumer price index
d) none of the answers are correct

What best describes a developed nation?
a) high incomes, industrialization, high literacy rate
b) high poverty rate, little political freedom, high unemployment
c) low life expectancy, slightly industrialized, moderate infrastructure
d) none of the given responses describe a developed nation

What best describes a developing nation?
a) high incomes, industrialized, high literacy rate
b) high poverty rate, little political freedom, high unemployment
c) low life expectancy, slightly industrialized, moderate infrastructure
d) none of the given responses describe a developed nation

What best describes an underdeveloped nation?
a) high incomes, industrialized, high literacy rate
b) high poverty rate, low life expectancy, high unemployment
c) low life expectancy, slightly industrialized, moderate infrastructure
d) none of the given responses describe an underdeveloped nation

Indicate which component of GDP is affected in this scenario, A business that sells lamps increases their current inventory by 5,000 lamps
a) Consumption
b) Investment
c) Government
d) Net Exports

Indicate which component of GDP is affected in this scenario, An individual spends $150 on a new cell phone
a) Investment
b) Not Counted in GDP
c) Consumption
d) Government

Indicate which component of GDP is affected in this scenario, A Chinese company purchases rubber valves from a US based company
a) Government
b) Investment
c) Consumption
d) Net Exports

Indicate which component of GDP is affected in this scenario, A single mother receives $360 a month in food stamps.
a) Investment
b) Government
c) Net Exports
d) Not counted in GDP

Indicate which component of GDP is affected in this scenario, A school receives funding from the Dept. of Education
a) Government
b) Investment
c) Consmption
d) Not counted in GDP

Indicate which component of GDP is affected in this scenario, A teenager purchases their first car, a used Prius
a) Consumption
b) Government
c) Not counted in GDP
d) Investment

Indicate which component of GDP is affected in this scenario, Starbucks purchases a new coffee machine to keep up with business.
a) Government
b) Investment
c) Net Exports
d) Not counted in GDP

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