BADM 7200 UPDATED ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS
●● GDP expenditure
Answer: total expenditure on domestically produced final goods and
services
●● GDP income
Answer: total income earned by domestically located factors of
production
●● Value Added
Answer: is the value of output minus the value of the intermediate goods
used to produce that output
●● value of final goods produced
Answer: includes the value of the intermediate goods
●● Durable goods
Answer: last a long time
●● Non-durable goods
,Answer: last a short time
●● services
Answer: are intangible items purchased by consumers
●● business fixed investment
Answer: business purchases of factories, offices, machinery, and
equipment
●● Residential fixed investment
Answer: spending by consumers and landlords on housing units
●● inventory investment
Answer: the value of the change in total inventories held in the economy
during a given period
●● stocks
Answer: quantity measured at a point in time
●● flow
Answer: quantity measured per unit of time
●● Gross National Product
, Answer: total income earned by the nation's factors of production,
regardless of where located
●● Nominal GDP
Answer: measures the output of an economy valued at today's prices, or
in current dollars
●● Real GDP
Answer: measures values using the prices of a base year
●● Changes in nominal GDP can be due to:
Answer: changes in prices, changes in quantities of output produced
●● changes in real gdp can be due
Answer: more goods and services produced and sold means we need
more money (and vice versa)
●● Inflation Rate
Answer: the percentage increase in the price level from one year to the
next
●● GDP deflator
QUESTIONS AND CORRECT ANSWERS
●● GDP expenditure
Answer: total expenditure on domestically produced final goods and
services
●● GDP income
Answer: total income earned by domestically located factors of
production
●● Value Added
Answer: is the value of output minus the value of the intermediate goods
used to produce that output
●● value of final goods produced
Answer: includes the value of the intermediate goods
●● Durable goods
Answer: last a long time
●● Non-durable goods
,Answer: last a short time
●● services
Answer: are intangible items purchased by consumers
●● business fixed investment
Answer: business purchases of factories, offices, machinery, and
equipment
●● Residential fixed investment
Answer: spending by consumers and landlords on housing units
●● inventory investment
Answer: the value of the change in total inventories held in the economy
during a given period
●● stocks
Answer: quantity measured at a point in time
●● flow
Answer: quantity measured per unit of time
●● Gross National Product
, Answer: total income earned by the nation's factors of production,
regardless of where located
●● Nominal GDP
Answer: measures the output of an economy valued at today's prices, or
in current dollars
●● Real GDP
Answer: measures values using the prices of a base year
●● Changes in nominal GDP can be due to:
Answer: changes in prices, changes in quantities of output produced
●● changes in real gdp can be due
Answer: more goods and services produced and sold means we need
more money (and vice versa)
●● Inflation Rate
Answer: the percentage increase in the price level from one year to the
next
●● GDP deflator
