ECN 211 Midterm 1 Exam Questions
and Answers 100% Pass
Gross Domestic Product (GDP) - CORRECT ANSWER-Measures the total
income of everybody in the economy and total expenditure on economy's output
of goods and services
Gross Domestic Product Equation - CORRECT ANSWER-C + I + G + NX
(C + I + G + (Exports - Imports))
Included in GDP - CORRECT ANSWER-Tangible goods: Cars, Appliances,
Food items
Intangible goods: Dentist visit, Salon trip, Tax service
Any final goods produced in country (even if foreign owned)
Goods and Services currently produced
4 Expenditures of GDP - CORRECT ANSWER-Consumption, Investment,
Government Purchases, and Net Exports
Consumption - CORRECT ANSWER-Spending by households on goods/services
with the exception of new housing
, Investment - CORRECT ANSWER-Purchase of capital goods by businesses that
will be used to produce more goods in the future
Government Purchases - CORRECT ANSWER-Spending on goods/services by
local, state, and federal governments from the private sector. Does not include
transfer payments
Net Exports - CORRECT ANSWER-Exports - Imports
Real GDP - CORRECT ANSWER-Measures output in regards to inflation
Allows for better comparison of GDP year to year
Real GDP Equation - CORRECT ANSWER-Base year prices x Current Output
Nominal GDP - CORRECT ANSWER-Measure of output using current prices
Growth can be overstated
Nominal GDP Equation - CORRECT ANSWER-Current price x Current output
GDP Deflator - CORRECT ANSWER-Measures changes in price for all goods
and services produced
GDP Deflator Equation - CORRECT ANSWER-(Nominal GDP/Real GDP) x
100
What is unemployment? - CORRECT ANSWER-Someone who is actively
searching for work and cannot find a job
and Answers 100% Pass
Gross Domestic Product (GDP) - CORRECT ANSWER-Measures the total
income of everybody in the economy and total expenditure on economy's output
of goods and services
Gross Domestic Product Equation - CORRECT ANSWER-C + I + G + NX
(C + I + G + (Exports - Imports))
Included in GDP - CORRECT ANSWER-Tangible goods: Cars, Appliances,
Food items
Intangible goods: Dentist visit, Salon trip, Tax service
Any final goods produced in country (even if foreign owned)
Goods and Services currently produced
4 Expenditures of GDP - CORRECT ANSWER-Consumption, Investment,
Government Purchases, and Net Exports
Consumption - CORRECT ANSWER-Spending by households on goods/services
with the exception of new housing
, Investment - CORRECT ANSWER-Purchase of capital goods by businesses that
will be used to produce more goods in the future
Government Purchases - CORRECT ANSWER-Spending on goods/services by
local, state, and federal governments from the private sector. Does not include
transfer payments
Net Exports - CORRECT ANSWER-Exports - Imports
Real GDP - CORRECT ANSWER-Measures output in regards to inflation
Allows for better comparison of GDP year to year
Real GDP Equation - CORRECT ANSWER-Base year prices x Current Output
Nominal GDP - CORRECT ANSWER-Measure of output using current prices
Growth can be overstated
Nominal GDP Equation - CORRECT ANSWER-Current price x Current output
GDP Deflator - CORRECT ANSWER-Measures changes in price for all goods
and services produced
GDP Deflator Equation - CORRECT ANSWER-(Nominal GDP/Real GDP) x
100
What is unemployment? - CORRECT ANSWER-Someone who is actively
searching for work and cannot find a job
