Pierce College » Economics » Economics 002 - Principles of Economics II » Winter 2021

Question #1

GDP excludes the following types of non-production transactions:

A. Acquisitions of new goods

B. Purely financial transactions

C. Second hand sales

D. Both purely financial transactions & second hand sales

Question #2

The US is frequently referred to as a service economy

A. FALSE

B. TRUE

Question #3

When calculating GDP using the expenditures and income approach, the GDP amount should be:

A. Different because the income approach is more correct

B. The same using both methods

C. It doesn't matter as both approaches are wrong

D. Different because the expenditures approach is more correct

Question #4

What is the name of the part of the economy that is excluded in the GDP amount?

A. Underground economy

B. Above ground economy

C. Level ground economy

D. In-ground economy