AP Economics GDP, Economy, and Growth questions and answers well illustrated.

AP Economics GDP, Economy, and Growth questions and answers well illustrated. GDP - correct answers.The market value of all final goods and services produced domestically in one year GDP per Capita - correct answers.GDP divided by population; indicates quality of life/status of a country Market Value - correct value of goods and services at market price; any activity wit no measurable market value does not go into GDP Final - correct s double-counting; focus on product market; value is not calculated during stages of production Produced - correct answers.FINAL PRODUCT Domestically (Within a Country) - correct in that country ( regardless of where the company is based); Final goods manufactured in the country (not where individual parts are made) In a year - correct of production, not year of sale (does not count items sold as used); Items produced but not sold count as an inventory expenditure 3 things not counted in GDP - correct answers.Transfer payments (public and private) Stock Market Transactions (except broker fees) Secondhand Sales (unless markup) Transfer payments - correct c=social security, welfare private= trade a chicken for bread Income recieved but not earned; from one income earning citizen to another non-earning citizen Spending, Output, Expenditure Approach to GDP - correct answers.C+I+G+X consuption by households, investment by firms, spending by government, net exports by foreign markets Non-durable/durable, investment in fixed and inventory expenditures, depreciation of goods, government expenditures (not transfer payments), expenditures on exports minus imports Income Approach to GDP - correct sum of all earnings by households and firms in a year Growth Rate Calculation - correct answers.(Current Year-Base Year) ------------------------------------ Base Year times 100 to get the percent Price Index - correct answers.Change in price (new price over base year price) times 100 Nominal GDP - correct answers.GDP adjusted for inflation Real GDP - correct answers.GDP as if prices were constant Nonmarket Activity - correct e who can make their own goods/do their own services (shortcoming GDP) Leisure - correct answers.The value, satisfaction, and possible increase in productivity due to vacation (shortcoming GDP) Improved Product Quality - correct answers.People buy higher quality over cheap goods; people buy less because things don't depreciate (shortcoming GDP) The Underground Economy - correct answers.Undeclared earnings; "off the books" (shortcoming GDP) GDP and the Environment - correct answers.Does not measure environmental impact/costs (shortcoming GDP) Composition and Distribution of Output - correct answers.What the goods are and where they are made/sold within the country (shows values of the country and distribution of wealth/work) (shortcoming GDP) Real GDP per Capita - correct answers.Real GDP divided by the population