ECON 102- EXAM 2 QUESTIONS WITH CORRECT ANSWERS

ECON 102- EXAM 2 QUESTIONS WITH
CORRECT ANSWERS 2024-2025
1)KGrossKdomesticKproductKisKtheKtotalK________KproducedKwithinKaKcountryKinKaKgivenKtimeKperiod.K

A)KmarketKvalueKofKallKfinalKgoodsKandKservicesK

B)KmarketKvalueKofKallKgoodsKandKservicesK

C)KamountKofKfinalKandKintermediateKgoodsKandKservicesK

D)KmarketKvalueKofKallKfinalKandKintermediateKgoodsKandKservicesK-KcorrectKanswer-A



2)KGDPKequalsK

A)KaggregateKincome.K

B)KaggregateKexpenditure.K

C)KtheKvalueKofKtheKaggregateKproductionKinKaKcountryKduringKaKgivenKtimeKperiod.K

D)KallKofKtheKabove.K-KcorrectKanswer-D



3)KIfKFordKsellsK200KExplorersKforKaKtotalKofK$400,000KtoKGermany,KwhileKtheKUnitedKStatesKimportsK100KBM
WsKforKaKtotalKofK$500,000KfromKGermanyK

A)KGermany'sKGDPKdecreases.

B)KU.S.KnetKexportsKisKpositive.K

C)KU.S.KGDPKdecreasesKbecauseKnetKexportsKareKnegative.KD)KU.S.KGDPKincreasesKbecauseKitKsellsKmoreKExpl
orers.K-KcorrectKanswer-C



4)KAnKexampleKofK"investment"KinKcomputingKrealKGDPKusingKtheKexpenditureKapproachKisKtheKpurchaseKof
K



A)KaKnewKsetKofKtoolsKbyKanKautoKmechanic,KforKuseKinKrepairingKcars.K

B)KcomputerKchipsKbyKDellKtoKputKinKtheirKpersonalKcomputers.K

C)KaK100KyearKoldKhouseKbyKaKmarriedKcouple.K

D)K100KsharesKofKIBMKstock.K-KcorrectKanswer-A



5)KGrossKdomesticKproductKisKaKmeasureKofKtheKtotalKvalueKofKallK

A)KsalesKinKanKeconomyKoverKaKperiodKofKtime.K

,B)KfinalKgoodsKandKservicesKproducedKinKanKeconomyKoverKaKperiodKofKtime.K

C)KcapitalKaccumulationKinKanKeconomyKoverKaKperiodKofKtime.K

D)KconsumerKincomeKinKanKeconomyKoverKaKperiodKofKtime.K-KcorrectKanswer-B



6)KGrossKdomesticKproductKisKtheK

A)KtotalKamountKthatKbuyersKspentKonKtheKfinalKgoodsKandKservicesKproducedKinKaKcountryKduringKaKspecifi
cKtime.K

B)KtotalKamountKofKincomeKearnedKinKproducingKtheKfinalKgoodsKandKservicesKinKaKcountryKduringKaKspecific
Ktime.K



C)KvalueKofKtheKfinalKgoodsKandKservicesKproducedKinKaKcountryKduringKaKspecificKtime.K

D)KAllKofKtheKaboveKanswersKareKcorrect.K-KcorrectKanswer-D



7)KIfKFritoKLay,KanKAmericanKsnackKcompany,KopensKaKnewKmanufacturingKfacilityKinKMexicoKandKproducesKs
nacksKwhichKareKdistributedKinKSouthKAmerica,KthenKMexico'sKGDPK________KandKU.S.KGDPK________.K

A)KdoesKnotKchange;KincreasesK

B)Kincreases;KdoesKnotKchangeK

C)Kincreases;KdecreasesK

D)Kincreases;KincreasesK-KcorrectKanswer-B



8)KGrossKinvestmentKequalsKnetKinvestmentKplusK

A)KdividendsKpaidKtoKtheKownersKofKtheKcompany.K

B)KcapitalKgains.K

C)Kcapital.K

D)Kdepreciation.K-KcorrectKanswer-D



9)KIntermediateKgoodsKareKexcludedKfromKGDPKbecauseKA)KtheyKrepresentKgoodsKthatKhaveKneverKbeenKpu
rchasedKsoKtheyKcannotKbeKcounted.K

B)KtheKpremiseKofKtheKquestionKisKincorrectKbecauseKintermediateKgoodsKareKdirectlyKincludedKinKcalculatin
gKGDP.

C)KtheirKinclusionKwouldKinvolveKdoubleKcounting.K

, D)KtheirKinclusionKwouldKunderstateKGDP.K-KcorrectKanswer-C



10)KTransferKpaymentsK

A)KreferKtoKallKpaymentsKmadeKtoKhouseholdsKbyKgovernments.K

B)KareKincludedKinKtheKgovernmentKexpenditureKcategoryKinKgrossKdomesticKproduct.K

C)KreferKtoKpaymentsKmadeKbyKtheKgovernmentKthatKareKnotKmadeKtoKpurchaseKaKgoodKorKservice.K

D)KareKmadeKbyKhouseholdsKtoKfirmsKinKexchangeKforKgoodsKandKservices.K-KcorrectKanswer-C



11)KInKtheKcomputationKofKGDP,KSocialKSecurityKpaymentsKcountKasK

A)KtransferKpaymentsKandKareKnotKincludedKinKGDP.K

B)KgovernmentKexpenditureKonKgoodsKandKservicesKandKareKincludedKinKGDP.K

C)KgovernmentKexpenditureKonKgoodsKandKservicesKandKareKnotKincludedKinKGDP.K

D)KtransferKpaymentsKandKareKincludedKinKGDP.K-KcorrectKanswer-A



12)KTransferKpaymentsKareKnotKincludedKinKGDPKbecauseK

A)KtheirKmarketKvalueKcannotKbeKaccuratelyKdetermined.K

B)KtheyKareKnotKpurchasesKofKgoodsKorKservices.K

C)KtheyKdoKnotKgenerateKadditionalKincome.K

D)KtheirKvalueKisKincludedKinKgovernmentKexpenditure.K-KcorrectKanswer-B



13)KIfKanKAmericanKfirmKproducesKgoodsKthatKareKsoldKtoKaKGermanKhousehold,KthenK

A)KU.S.KGDPKincreases.K

B)KtheKtransactionKisKconsideredKanKexportKinKtheKGermanKGDPKaccounts.K

C)KGermanKGDPKincreasesKbutKnotKU.S.KGDP.K

D)KnetKexportsKinKtheKUnitedKStatesKwillKnotKchangeKbecauseKanKexportKimmediatelyKgeneratesKanKoffsettin
gKimport.K-KcorrectKanswer-A



14)KNetKinvestmentKisKtheK

A)KvalueKofKsoftwareKandKotherKnetworkKrelatedKproducts.KB)KprofitKorKlossKinKtheKstockKmarket.K