ECON 104 FINAL EXAM BILL
GOFFE QUESTIONS AND
CORRECT ANSWERS 2025/2026
GRADED A+ LATEST UPDATE.
,1. The business cycle is the same thing as economic growth. (True or False)-
CORRECT ANSWER 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 CORRECT ANSWER a ship used to carry oil across the oce
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 CORRECT ANSWER 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 fol- lowing is not one of these?
-the value of leisure
-the harm from pollution
-the cost of crime and other social problems
-the production of intermediate goods CORRECT ANSWER 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 CORRECT ANSWER 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
-a computer owned by Amazon that processes orders
-lumber used in the construction of a new home
-a delivery truck owned by FedEx CORRECT ANSWER 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 CORRECT ANSWER 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 CORRECT ANSWER 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 CORRECT ANSWER 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 CORRECT ANSWER 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 CORRECT ANSWER a used truck that was sold to a busin
12. Which of the following is not part of GDP?
-purchases of new goods by households
-firms buying new machines
-the government buying new schools
-businesses paying bribes to government officials CORRECT ANSWER businesses paying bribes to government
officials
13. Which of the following is NOT an example of investment?
-McDonalds building a new restaurant
-Amazon adding books for consumers in its warehouses
GOFFE QUESTIONS AND
CORRECT ANSWERS 2025/2026
GRADED A+ LATEST UPDATE.
,1. The business cycle is the same thing as economic growth. (True or False)-
CORRECT ANSWER 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 CORRECT ANSWER a ship used to carry oil across the oce
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 CORRECT ANSWER 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 fol- lowing is not one of these?
-the value of leisure
-the harm from pollution
-the cost of crime and other social problems
-the production of intermediate goods CORRECT ANSWER 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 CORRECT ANSWER 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
-a computer owned by Amazon that processes orders
-lumber used in the construction of a new home
-a delivery truck owned by FedEx CORRECT ANSWER 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 CORRECT ANSWER 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 CORRECT ANSWER 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 CORRECT ANSWER 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 CORRECT ANSWER 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 CORRECT ANSWER a used truck that was sold to a busin
12. Which of the following is not part of GDP?
-purchases of new goods by households
-firms buying new machines
-the government buying new schools
-businesses paying bribes to government officials CORRECT ANSWER businesses paying bribes to government
officials
13. Which of the following is NOT an example of investment?
-McDonalds building a new restaurant
-Amazon adding books for consumers in its warehouses
