ECON 102 QUIZ 1 QUESTIONS AND ANSWERS.

ECON 102 QUIZ 1 QUESTIONS AND ANSWERS. GDP is defined as a. the market value of all goods and services produced within a country in a given period of time. b. the market value of all goods and services produced by the citizens of a country, regardless of where they are living in a given period of time. c. the market value of all final goods and services produced within a country in a given period of time. d. the market value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time. 2. GDP is not a perfect measure of well-being, because: a. It Doesn’t show distribution of income b. It Doesn’t include Value of almost all activity that takes place outside markets c. It Doesn’t include Quality of the environment d. all the above 3. If all quantities produced rise by 10 percent, and all prices fall by 10 percent, which of the following occurs? a. Real GDP rises by 10 percent, while nominal GDP falls by 10 percent. b. Real GDP rises by 10 percent, while nominal GDP is unchanged. c. Real GDP is unchanged, while nominal GDP rises by 10 percent. d. Real GDP is unchanged, while nominal GDP falls by 10 percent. 4. Which of the following does NOT add to U.S. gross domestic product? a. Air France buys a plane from Boeing, the U.S. aircraft manufacturer. b. An American company, General Motors, builds a new auto factory in North Carolina (US). c. The city of New York pays a salary to a policeman. d. The federal government sends a Social Security check to your grandmother. 5. Which of the following is not considered as consumption? a. Your family buys a new house. b. You buy a new text book from local bookstore. c. A student pays train ticket to visit her family during semester break. d. You have your lunch at a restaurant.