ECO 201 Test 2 Questions and
Answers 100% Pass
GDP(Gross Domestic Product) - ✔✔aggregate output as the dollar value of all final
goods and services produced within the borders of a country during a specific period of
time( year)
What type of good are included in this economic indicator? - ✔✔Market value final
goods, Ignore intermediate goods, Count value added
Final goods - ✔✔products that are purchased by their end users
Expenditure model formula and which is the largest component? - ✔✔All Final goods
and services that has taken place throughout the year. (Consumption by households)
Be able to identify what is included in C, I, G and Xn - ✔✔I(Investment)- a new
constructed house./C(Consumption)- Durable or non durable goods./ G(Gov
Purchases)- schools and highways. Xn(Net Exports)- goods or services produced in the
U.S.
Public transfer definition and the relation to production - ✔✔Social security payments,
welfare payments, and veterans payments that the government makes directly to
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, households. /contribute nothing to current production, so in GDP would be to
overstate the year's output.
Net exports formula - ✔✔Xn= exports(X)- imports(M) or
GDP= C+ lg + G + Xn
When Personal income is equal to disposable income? - ✔✔disposable personal income.
GDP index - ✔✔measure of the price of a specified collection of goods and services
called a market basket, in a given year as compared to the price of an identical collection
of goods and services in a reference year.
Measurement for living standards? - ✔✔Read GDP per Capita = Real GDP divided by
Population
Rule of 70 - ✔✔A method for determining the number of years it will take for some
measure to double, given its annual percentage increase.
Growth before the Industrial revolution? - ✔✔Living standards were flat over a long
period of time.
Leader and follower countries economic growth - ✔✔Leader- grows by an average
annual rate of just 2 or 3 percent per year. / Followers- can grow much faster because
they simply adopt existing technology from rich leader countries.
Patent and copyrights - ✔✔Necessary if society wants a constant flow of innovative
new technologies and sophisticated new ideas. Gives inventors and authors the
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Answers 100% Pass
GDP(Gross Domestic Product) - ✔✔aggregate output as the dollar value of all final
goods and services produced within the borders of a country during a specific period of
time( year)
What type of good are included in this economic indicator? - ✔✔Market value final
goods, Ignore intermediate goods, Count value added
Final goods - ✔✔products that are purchased by their end users
Expenditure model formula and which is the largest component? - ✔✔All Final goods
and services that has taken place throughout the year. (Consumption by households)
Be able to identify what is included in C, I, G and Xn - ✔✔I(Investment)- a new
constructed house./C(Consumption)- Durable or non durable goods./ G(Gov
Purchases)- schools and highways. Xn(Net Exports)- goods or services produced in the
U.S.
Public transfer definition and the relation to production - ✔✔Social security payments,
welfare payments, and veterans payments that the government makes directly to
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
, households. /contribute nothing to current production, so in GDP would be to
overstate the year's output.
Net exports formula - ✔✔Xn= exports(X)- imports(M) or
GDP= C+ lg + G + Xn
When Personal income is equal to disposable income? - ✔✔disposable personal income.
GDP index - ✔✔measure of the price of a specified collection of goods and services
called a market basket, in a given year as compared to the price of an identical collection
of goods and services in a reference year.
Measurement for living standards? - ✔✔Read GDP per Capita = Real GDP divided by
Population
Rule of 70 - ✔✔A method for determining the number of years it will take for some
measure to double, given its annual percentage increase.
Growth before the Industrial revolution? - ✔✔Living standards were flat over a long
period of time.
Leader and follower countries economic growth - ✔✔Leader- grows by an average
annual rate of just 2 or 3 percent per year. / Followers- can grow much faster because
they simply adopt existing technology from rich leader countries.
Patent and copyrights - ✔✔Necessary if society wants a constant flow of innovative
new technologies and sophisticated new ideas. Gives inventors and authors the
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
