Question

1-The GDP is:

Measured in physical units.

A measure of the economic growth rate.

A per capita measure.

The total value of all final goods and services produced within a nation's borders in a given year.

2-Which of the following types of spending would not be included in the calculation of GDP?

A federal government payment to a disabled war veteran.

The payment of the U.S. president's salary.

A county government's payment of a teacher's salary.

The expenses for snow removal from a city's streets.

3- Which of the following shows the correct order (from largest to smallest percentage of the GDP) for the different items in the mix of output in the U.S. As shown in the textbook)?

Federal government purchases, state and local government purchases, investment goods, exports.

Federal government purchases, investment goods, state and local government purchases, exports.

Investment goods, state and local government purchases, federal government purchases, net exports.

State and local government purchases, exports, federal government purchases, investment goods.

4-Productivity is a measure of:

Output per unit of input.

Input per unit of output.

Output per dollar of input.

Input per dollar of output.

5- When the production of a good creates external costs:

Profits for the producer of the good will be lower.

Production of the good will be lower.

Society's collective well-being will be lower.

The level of environmental pollution will be lower.

6- Most of the United States GDP is used by:

Consumers.

Federal, state and local governments.

Businesses.

Foreign individuals and businesses.

7- The income distribution of the United States is basically the nation's answer to the:

WHAT question.

HOW question.

FOR WHOM question.

All of the above.

8- The richest 20 percent of the families in the U.S. receive approximately ______ percent of total income.

  

10

20

50

90

9- The 20 percent of families with the lowest income in the U.S. receive approximately ______ percent of total income.

1

4

15

24

Answer 1

1) The GDP is the measure of the market value of all final goods and services produced within a nation's border within a year.

2) A federal government payment to a disabled war veteran will not be included for calculating GDP because these are regarded as social security payments and as these are not payments for goods and services,they do not represent a final demand.

3)federal spending,investment,state and local,exports

4)Productivity is the measure of the output to the input.

5)When the production of goods creates external costs, society's collective will be lower.

6)consumers

7)all of the above

8)50

9)4