Income and Analytic Skills

Principles of Macroeconomics, 9e - TB1 (Case/Fair/Oster)
Chapter 6
Measuring National Output and National Income

6.1
Gross Domestic Product

1
Multiple Choice

1)
The total market value of all final goods and services produced within a given period by factors of production located within a country is A) gross domestic product. B) gross national product. C) net national product. D) net national income. Answer:
A
Diff: 1 Topic:
Gross Domestic Product Skill:
Definition

2)
Gross domestic product measures A) the total spending of everyone in the economy. B) the value of all output in the economy. C) the total income of everyone in the economy. D) all of the above Answer:
D
Diff: 2 Topic:
Gross Domestic Product Skill:
Definition

3)
Which of the following is an example of a final good or service? A) wheat a bakery purchases to make bread B) coffee beans Starbucks purchases to make coffee C) lumber purchased by a construction company to used in building houses D) a computer purchased by Federal Express to track shipments Answer:
D
Diff: 2 Topic:
Gross Domestic Product Skill:
Conceptual
AACSB:
Reflective Thinking

4)
Which of the following is a good or service counted in GDP? A) tires Ford buys to put on a car B) a used tire you buy for your personal car C) a new tire you buy for your personal car D) used tires bought by a used car dealer to put on a car on his lot Answer:
C
Diff: 2 Topic:
Gross Domestic Product Skill:
Conceptual
AACSB:
Reflective Thinking

5)
Which of the following is an example of an intermediate good? A) the dough you buy to fix yourself a pizza for dinner B)
the