Macroeconomics, 10e (Parkin) Chapter 4 Measuring GDP and Economic Growth 1 Gross Domestic Product 1) Gross domestic product is the total _ produced within a country in a given time period. A) market value of all final and intermediate goods and services B) market value of all goods and services C) amount of final and intermediate goods and services D) market value of all final goods and services Answer: D Topic: GDP Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 2) Gross domestic product A) includes all the goods and none of the services produced in an economy in a given time period. B) measures the value of the aggregate production of goods and services in a country during a given time period. C) measures the value of labor payments generated in an economy in a given time period. D) is generally less than federal expenditure in any time period. Answer: B Topic: GDP Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 3) Gross domestic product is a measure of the total value of all A) sales in an economy over a period of time. B) consumer income in an economy over a period of time. C) capital accumulation in an economy over a period of time. D) final goods and services produced in an economy over a period of time. Answer: D Topic: GDP Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 4) Gross domestic product (GDP) is the _ in a given time period. A) value of personal consumption expenditures, gross private domestic investment, and federal government expenditures B) sum of wage and salary compensation of employees and corporate profits C) value of all final and intermediate goods and services produced by the economy excluding those goods exported to foreign nations D) market value of final goods and services produced by the economy Answer: D Topic: GDP Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 5) Gross domestic product (GDP) measures the A) number of final goods and services produced in the economy in a given time period. B) number of final goods and services sold in the economy in a given time period. C) market value of old and new final goods and services sold in the economy in a given time period. D) market value of final goods and services produced in the economy in a given time period. Answer: D Topic: GDP Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 6) GDP is defined as the market value of all _ in a given time period. A) final goods produced in a country B) final goods and services produced by citizens of a particular country regardless of where in the world they are located C) final goods and services produced in a country by only the citizens of the country D) final goods and services produced in a country Answer: D Topic: GDP Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 7) In the definition of GDP, “market value“ refers to A) valuing production in production units. B) not counting intermediate products. C) valuing production according to the market price. D) when the production took place. Answer: C Topic: Market Value Skill: Recognition Question history: Modified 10th edition AACSB: Reflective Thinking 8) In the United States, GDP is typically measured 3 Copyright 2012 Pearson Education, Inc. A) monthly. B) quarterly. C) daily. D) weekly. Answer: B Topic: Time Period Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 9) If Nike, an American corporation, produces sneakers in Thailand this would A) count as part of U.S. GDP since it is a U.S. corporation. B) count for both Thailands GDP and U.S. GDP. C) add to Thailands GDP but not to U.S. GDP. D) add to neither U.S. GDP nor Thailands GDP. Answer: C Topic: Production Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 10) If Frito Lay, an American snack company, opens a new manufacturing facility in Mexico and produces snacks which are distributed in South America, then Mexicos GDP _ and U.S. GDP _. A) increases; does not change B) does not change; increases C) increases; decreases D) increases; increases Answer: A Topic: Production Skill: Recognition Question history: New 10th edition AACSB: Reflective Thinking 11) The word “final“ in the definition of GDP refers to A) not counting intermediate goods or services. B) the time period when production took place. C) valuing production at market prices. D) counting the intermediate goods and services used to produce GDP. Answer: A Topic: Final Good Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 12) A loaf of bread purchased by one of your instructors would be best described as A) an intermediate good. B) a financial asset. C) a used good. D) a final good. Answer: D Topic: F