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. Second hand sales

C. Both purely financial transactions & second hand sales

D. Purely financial transactions

Question #2

The US is frequently referred to as a service economy

A. TRUE

B. FALSE

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. It doesn't matter as both approaches are wrong

C. The same using both methods

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. Level ground economy

B. Underground economy

C. Above ground economy

D. In-ground economy