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ECON 104 BILLE GOFFE FINAL EXAM ALL
QUESTIONS AND CORRECT DETAILED ANSWERS
TOP RATED VERSION FOR 2025-2026 | ALREADY A
GRADED
1. The business cycle is the same thing as economic growth. (True or False):
False
2. Which of the following is the best example of capital?
-a family buying a newly produced home
-a shoe store adding to its inventories
-a ship used to carry oil across the ocean
-the production and sale of a new delivery van for UPS: a ship used to carry oil across the
ocean
3. How are pollution and GDP related?
A. only the harm from pollution is included in GDP
B. the value of produced goods that lead to pollution are counted in GDP
and pollution is not counted
C. goods whose production creates pollution are not counted in GDP: the value
of produced goods that lead to pollution are counted in GDP and pollution is not counted
4. GDP has various shortcomings in measuring well-being. Which of the
follow- ing is not one of these?
-the value of leisure
-the harm from pollution
-the cost of crime and other social problems
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-the production of intermediate goods: the production of intermediate goods
5. Which of the following would not be in real GDP when measured by
produc- tion?
-a car produced by GM & sold in New York
-the government purchasing a new truck
-a pencil manufactured in the U.S. that is sold in Japan
-the production of steel that is in turn used to make a car: the production of steel that is
in turn used to make a car
6. Which of the following is an example of an intermediate good as counted
in GDP?
-a drill used by a professional carpenter
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-a computer owned by Amazon that processes orders
-lumber used in the construction of a new home
-a delivery truck owned by FedEx: lumber used in the construction of a new home
7. Which of the following is the least likely to be investment?
-a household buying a new house
-a household saving for retirement
-GM building a new factory
-a car dealer adding to its cars on hand: a household saving for retirement
8. When you calculate GDP you need
-the prices of goods & services
-the amount of goods & services produced
-both the prices and quantities of produced goods & services
-none of the above: both the prices and quantities of produced goods & services
9. If you computed nominal GDP every year over a decade, which is fixed or
held constant over these years?
-prices
-quantities
-neither prices nor quantities: neither prices nor quantities
10. Which is NOT part of the definition of capital, as used by economists? It .
-must be manufactured
-is used by firms
-is used up in production
-produces other goods and services: is used up in production
11. Which of the following would not be in this quarter's real GDP?
-a new house that sold today
-a used truck that was sold to a business
-a bookstore adding to books in its warehouse
-a book manufactured in the U.S. and then sold in Mexico: a used truck that was sold to
a business
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12. Which of the following is not part of GDP?
-purchases of new goods by households
-firms buying new machines
ECON 104 BILLE GOFFE FINAL EXAM ALL
QUESTIONS AND CORRECT DETAILED ANSWERS
TOP RATED VERSION FOR 2025-2026 | ALREADY A
GRADED
1. The business cycle is the same thing as economic growth. (True or False):
False
2. Which of the following is the best example of capital?
-a family buying a newly produced home
-a shoe store adding to its inventories
-a ship used to carry oil across the ocean
-the production and sale of a new delivery van for UPS: a ship used to carry oil across the
ocean
3. How are pollution and GDP related?
A. only the harm from pollution is included in GDP
B. the value of produced goods that lead to pollution are counted in GDP
and pollution is not counted
C. goods whose production creates pollution are not counted in GDP: the value
of produced goods that lead to pollution are counted in GDP and pollution is not counted
4. GDP has various shortcomings in measuring well-being. Which of the
follow- ing is not one of these?
-the value of leisure
-the harm from pollution
-the cost of crime and other social problems
,2|Page
-the production of intermediate goods: the production of intermediate goods
5. Which of the following would not be in real GDP when measured by
produc- tion?
-a car produced by GM & sold in New York
-the government purchasing a new truck
-a pencil manufactured in the U.S. that is sold in Japan
-the production of steel that is in turn used to make a car: the production of steel that is
in turn used to make a car
6. Which of the following is an example of an intermediate good as counted
in GDP?
-a drill used by a professional carpenter
,3|Page
-a computer owned by Amazon that processes orders
-lumber used in the construction of a new home
-a delivery truck owned by FedEx: lumber used in the construction of a new home
7. Which of the following is the least likely to be investment?
-a household buying a new house
-a household saving for retirement
-GM building a new factory
-a car dealer adding to its cars on hand: a household saving for retirement
8. When you calculate GDP you need
-the prices of goods & services
-the amount of goods & services produced
-both the prices and quantities of produced goods & services
-none of the above: both the prices and quantities of produced goods & services
9. If you computed nominal GDP every year over a decade, which is fixed or
held constant over these years?
-prices
-quantities
-neither prices nor quantities: neither prices nor quantities
10. Which is NOT part of the definition of capital, as used by economists? It .
-must be manufactured
-is used by firms
-is used up in production
-produces other goods and services: is used up in production
11. Which of the following would not be in this quarter's real GDP?
-a new house that sold today
-a used truck that was sold to a business
-a bookstore adding to books in its warehouse
-a book manufactured in the U.S. and then sold in Mexico: a used truck that was sold to
a business
,4|Page
12. Which of the following is not part of GDP?
-purchases of new goods by households
-firms buying new machines
