Econ 202 Exam 1 – Gillette Questions with Correct Answers

Econ 202 Exam 1 – Gillette Questions with Correct
Answers
4 Components of GDP Correct Answer-1) Consumption Spending (not
including spending on new houses)
2) Investment Spending (drops MORE in a recession)
3) Government Purchases (does not include transfer payments, i.e. social
security)
4) Net Exports (exports - imports)


GDP Equals Correct Answer-Total Production = Total Income


GDP Correct Answer-Market Value of all Final Goods and Services
Produced in a Country in a Year


What is NOT Included in GDP Correct Answer-Underground Economy
and Household Production


Durabel Goods Correct Answer-Vary during the Business Cycle


GINI Index Correct Answer-Degree of Inequality in the Distribution of
Income. (higher the index = the more unequal)


Real GDP Correct Answer-Value of Final Goods and Services Evaluated
at the Base Year (best measure of standard of living)

, Real GDP Equaiton Correct Answer-Real GDP (2016) = Price at Base
Year * Quantity (2016)


Nominal GDP Correct Answer-Value of Final Goods and Services
Evaluated at Current Year Prices


Nominal GDP Equaiton Correct Answer-Nominal GDP = Price at
Current Year (2016) * Quantity (2016)


GDP Equation Correct Answer-GDP= C + I + G + NX


Employment Population Ratio Correct Answer-Measures the Proportion
of the Working Age (16+) That Have Jobs (working age employed
divided by total number of people of working age)


Labor Force Participation Rate Correct Answer-Percentage of Working
Age Population in the Labor Force


Household Survey Correct Answer-- U.S. Bureau of Consensus
- Current Population Survey of 60,000 households
- Employment status of everyone >/= 16 years old


Establishment Survey (Payroll) Correct Answer-- Bureau of Labor
Statistics (BLS)
- Samples about 300,000 business establishments