1. If an economy produces final output worth $5 trillion, then the amount of gross income generated by that production: is $5 trillion
2. Which of the following would not be ian expenditure on a final good or service? a medical clinic's purchase of flu vaccine
3. Which of the following would be included in GDP? payment of the monthly telephone bill by Mr. Laconic
4. Consumption in the expenditures approach to calculating GDP includes: purchases of medical services at the local clinic
5. Which of the following is not considered a component of investment when calculating GDP? purchases of corporate stock
6. Which of the following is not included in GDP? interest payments on the national debt
7. Which of the following would not increase U.S. GDP? increased shipments of Ghanian cocoa to the United States on Greek vessels
8. A farmer grows wheat and sells it to a bakery for $5. The bakery bakes the wheat into bread, which it sells to a distributor for $20. The distributor sells the bread to a supermarket for $30, which sells the bread to customers for $50. Which of the following is true? The supermarket contributed more, in value added, than the bakery.
9. The simple circular flow model shows that: households are on the supply side of the resource market and the demand side of the product market
10. Suppose that the economy is in equilibrium with a trade deficit and that saving is greater than investment. According to the circular flow model, the government's budget: must be in deficit
11. Which of the following statements is true regarding leakages and injections? Since leakages equal injections, aggregate income equals aggregate expenditure.
12. Which of the following is an injection into the circular flow? transfer payments
13. Which of the following would not be included in the measurement of GDP? transactions in the underground economy
14. GDP is a poor measure of social well-being because: the value of leisure time is not