Question

1-How often is GDP reported for the U.S. economy?

Select one:

a. weekly

b. monthly

c. quarterly

d. annually

2-The measure of GDP that has NOT been adjusted for changes in prices is called:

Select one:

a. annual GDP

b. nominal GDP

c. real GDP

d. aggregate GDP

3-Services involve production that provides:

Select one:

a. a benefit along with the production of a tangible physical product.

b. a benefit without the production of a tangible physical product.

c. no benefit to the producer.

d. no benefit to the consumer.

4-Which statement is TRUE about a recession?

Select one:

a. It can be concentrated only in a single geographic area, but it must be widespread across many sectors of the economy within that area.

b. It must be a significant decline in economic activity that lasts for at least three years in a row.

c. It is a significant decline in economic activity lasting more than a few months and must be widespread geographically.

d. It can be a significant and widespread decline lasting only a month or two.

5-Real GDP is calculated using:

Select one:

a. prices at the time of sale.

b. the cost of production.

c. the same prices in all years.

d. a correction for inflation.

6-GDP is equal to:

Select one:

a. consumption + investment – net exports.

b. consumption + investment + wages + profits.

c. consumption + investment + government spending – net exports.

d. consumption + investment + government spending + net exports.

7-Which of the following is NOT considered a government purchase?

Select one:

a. new rifles for the military

b. unemployment checks

c. salaries for public school teachers

d. levees built by the Army Corps of Engineers