Hon. EC 111 Zirlott Test 2 || Already Passed.
spending by households on goods and
services, with the exception of
purchases of new housing correct answers Consumption
spending on capital equipment,
inventories, and structures, including
household purchases of new housing correct answers Investment
the study of economy-wide
phenomena, including inflation,
unemployment, and economic growth correct answers Macroeconomics
the market value of all final goods and
services produced within a country in a
given period of time correct answers GDP
the study of how households and firms
make decisions and how they interact in
markets correct answers Microeconomics
spending on domestically produced
goods by foreigners (exports) minus
spending on foreign goods by domestic residents (imports) correct answers Net exports
a measure of the price level calculated
as the ratio of nominal GDP to real GDP
times 100 correct answers GDP deflator
the production of goods and services
valued at constant prices correct answers real GDP
spending on goods and services by local,
state, and federal governments correct answers Government purchases
the production of goods and services
valued at current prices correct answers nominal GDP
most closely watched economic statistic because it is thought to be the best single measure of a
society's economic well-being correct answers GDP
For an economy as a whole, income must equal correct answers expenditure
The government includes owner-occupied housing in GDP by ____ by assuming that the
homeowner is _____. correct answers estimating its rental value; renting the house to himself
, GDP excludes correct answers illicit goods (like drugs); goods produced and consumed at home
(vegetable garden)
Goods intended for the end user are correct answers Final Goods
goods used as components or ingredients in the production of other goods correct answers
Intermediate goods
In the Circular Flow Diagram, payments to factors of production (wages, rent) are called correct
answers Factor Payments
In the CF Diagram, GDP is illustrated as correct answers spending, revenue, factor payments,
and income
In the CF Diagram, the omitted role of government in regards to the GDP are correct answers
taxes, buying G&S
In the CF Diagram, the omitted role of the financial system in regards to the GDP is correct
answers matching savers supply of funds with borrowers demand for loans
In the CF Diagram, the omitted roles of the foreign sector in regards to the GDP are correct
answers trades G&S, financial assets, and currency with the country's residents
the MARKET value of all final goods and services produced within a country in a given period
of time is the correct answers technical definition of GDP
GDP includes both ____ ____ (like DVDs, mountain bikes, beer)
and ____ ____ (dry cleaning, concerts, etc.) correct answers tangible goods; intangible services
GDP includes only _____ produced goods correct answers currently
Does GDP measure goods produced elsewhere but sold in a particular economy? correct answers
No
When are intermediate goods counted towards GDP? correct answers when an intermediate good
is produced and, rather than being used, is added to a firm's inventory of goods for use or sale at
a later date. (Thus, additions to inventory add to GDP, and when the goods in inventory are later
used or sold, the reductions in inventory subtract from GDP.)
When can used goods be included in GDP? correct answers never
What are the four components of GDP (Y)? correct answers C- Consumption
I- Investment
G- Governmental Purchases
NX- Net Exports
spending by households on goods and
services, with the exception of
purchases of new housing correct answers Consumption
spending on capital equipment,
inventories, and structures, including
household purchases of new housing correct answers Investment
the study of economy-wide
phenomena, including inflation,
unemployment, and economic growth correct answers Macroeconomics
the market value of all final goods and
services produced within a country in a
given period of time correct answers GDP
the study of how households and firms
make decisions and how they interact in
markets correct answers Microeconomics
spending on domestically produced
goods by foreigners (exports) minus
spending on foreign goods by domestic residents (imports) correct answers Net exports
a measure of the price level calculated
as the ratio of nominal GDP to real GDP
times 100 correct answers GDP deflator
the production of goods and services
valued at constant prices correct answers real GDP
spending on goods and services by local,
state, and federal governments correct answers Government purchases
the production of goods and services
valued at current prices correct answers nominal GDP
most closely watched economic statistic because it is thought to be the best single measure of a
society's economic well-being correct answers GDP
For an economy as a whole, income must equal correct answers expenditure
The government includes owner-occupied housing in GDP by ____ by assuming that the
homeowner is _____. correct answers estimating its rental value; renting the house to himself
, GDP excludes correct answers illicit goods (like drugs); goods produced and consumed at home
(vegetable garden)
Goods intended for the end user are correct answers Final Goods
goods used as components or ingredients in the production of other goods correct answers
Intermediate goods
In the Circular Flow Diagram, payments to factors of production (wages, rent) are called correct
answers Factor Payments
In the CF Diagram, GDP is illustrated as correct answers spending, revenue, factor payments,
and income
In the CF Diagram, the omitted role of government in regards to the GDP are correct answers
taxes, buying G&S
In the CF Diagram, the omitted role of the financial system in regards to the GDP is correct
answers matching savers supply of funds with borrowers demand for loans
In the CF Diagram, the omitted roles of the foreign sector in regards to the GDP are correct
answers trades G&S, financial assets, and currency with the country's residents
the MARKET value of all final goods and services produced within a country in a given period
of time is the correct answers technical definition of GDP
GDP includes both ____ ____ (like DVDs, mountain bikes, beer)
and ____ ____ (dry cleaning, concerts, etc.) correct answers tangible goods; intangible services
GDP includes only _____ produced goods correct answers currently
Does GDP measure goods produced elsewhere but sold in a particular economy? correct answers
No
When are intermediate goods counted towards GDP? correct answers when an intermediate good
is produced and, rather than being used, is added to a firm's inventory of goods for use or sale at
a later date. (Thus, additions to inventory add to GDP, and when the goods in inventory are later
used or sold, the reductions in inventory subtract from GDP.)
When can used goods be included in GDP? correct answers never
What are the four components of GDP (Y)? correct answers C- Consumption
I- Investment
G- Governmental Purchases
NX- Net Exports
