PRINCIPLES OF MACROECONOMICS
ACTUAL EXAM SCRIPT 2026 QUESTIONS
AND SOLUTIONS GRADED A+
◉In order to aggregate many goods and services into a single
number, economists sum up all of the. Answer: market values of final
goods and servces.
◉By aggregating the market values of goods and services, some
expensive, economy-wide items. Answer: receive a higher weighting
than less expensive items.
◉Some goods and services that are not sold in markets ARE
included in aggregated measures of GDP. The most important of
these include goods and services provided by the. Answer:
government.
◉A final good is. Answer: -Counted as GDP
-A good directly consumed by individuals or businesses.
◉Goods and services that are used up in the production of final
goods are called __________ goods.. Answer: intermediate
,◉__________ goods are included in the calculation of GDP while
__________ goods are not.. Answer: -Final
-intermediate
◉Which of the following goods and services is NOT included in an
aggregate measure of market values and, therefore, GDP?. Answer: -
Under-the-Table child care
-Black-market/illegal products
-The contributions of homemakers
◉One formal drawback to using market values to aggregate many
goods and services into one number is. Answer: not all economically
valuable goods and services are sold in markets.
◉A __________ good is a long-lived good that is used in the production
of other goods and services.. Answer: capital
◉Which of the following would be considered a capital good?.
Answer: -The truck used by a landscaping company.
-The lawnmower used by a landscaping company.
◉TRUE/FALSE: Newly produced capital goods are included in GDP..
Answer: TRUE
, ◉GDP only includes final goods and services. Answer: to avoid
double counting intermediate goods and services.
◉For any firm, value-added refers to. Answer: the difference in the
market value of the firm's output and the cost of inputs purchased
from other firms.
◉Which of the following would positively contribute to U.S. GDP?.
Answer: -A meal purchased by a Japanese tourist in Chicago.
-A Toyota Camry produced in Kentucky.
-A Ford Escape produced in Kentucky.
◉Indicate which of the following goods and services is included in
the calculation of GDP for the year 2015.. Answer: -The fee paid to a
salesperson who sold you a 2010 truck in 2015.
-Maple syrup produced by a Canadian company in Vermont.
◉Which of the following would positively contribute to U.S. GDP?.
Answer: -Pizza made by an Italian family who owns a pizzeria in
New York.
-A Hershey's chocolate bar made in the U.S. and purchased by an
American while on vacation in Italy.
ACTUAL EXAM SCRIPT 2026 QUESTIONS
AND SOLUTIONS GRADED A+
◉In order to aggregate many goods and services into a single
number, economists sum up all of the. Answer: market values of final
goods and servces.
◉By aggregating the market values of goods and services, some
expensive, economy-wide items. Answer: receive a higher weighting
than less expensive items.
◉Some goods and services that are not sold in markets ARE
included in aggregated measures of GDP. The most important of
these include goods and services provided by the. Answer:
government.
◉A final good is. Answer: -Counted as GDP
-A good directly consumed by individuals or businesses.
◉Goods and services that are used up in the production of final
goods are called __________ goods.. Answer: intermediate
,◉__________ goods are included in the calculation of GDP while
__________ goods are not.. Answer: -Final
-intermediate
◉Which of the following goods and services is NOT included in an
aggregate measure of market values and, therefore, GDP?. Answer: -
Under-the-Table child care
-Black-market/illegal products
-The contributions of homemakers
◉One formal drawback to using market values to aggregate many
goods and services into one number is. Answer: not all economically
valuable goods and services are sold in markets.
◉A __________ good is a long-lived good that is used in the production
of other goods and services.. Answer: capital
◉Which of the following would be considered a capital good?.
Answer: -The truck used by a landscaping company.
-The lawnmower used by a landscaping company.
◉TRUE/FALSE: Newly produced capital goods are included in GDP..
Answer: TRUE
, ◉GDP only includes final goods and services. Answer: to avoid
double counting intermediate goods and services.
◉For any firm, value-added refers to. Answer: the difference in the
market value of the firm's output and the cost of inputs purchased
from other firms.
◉Which of the following would positively contribute to U.S. GDP?.
Answer: -A meal purchased by a Japanese tourist in Chicago.
-A Toyota Camry produced in Kentucky.
-A Ford Escape produced in Kentucky.
◉Indicate which of the following goods and services is included in
the calculation of GDP for the year 2015.. Answer: -The fee paid to a
salesperson who sold you a 2010 truck in 2015.
-Maple syrup produced by a Canadian company in Vermont.
◉Which of the following would positively contribute to U.S. GDP?.
Answer: -Pizza made by an Italian family who owns a pizzeria in
New York.
-A Hershey's chocolate bar made in the U.S. and purchased by an
American while on vacation in Italy.
