Econ 102 - Principles of Macroeconomics » Fall 2022 » GDP Quiz

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Question #1
This year you purchase a beautiful vintage 1965 Thunderbird convertible. This purchase would
A.   be included in this year's GDP
B.   be included in GDP in 1965
C.   be included in GDP for this year and 1965
D.   be included in this year's GDP but at a depreciated value
Question #2
Nominal GDP is another term for
A.   real GDP
B.   current dollar GDP
C.   constant dollar GDP
D.   relative value GDP
Question #3
Since countries differ in the amount of economic activity that is transacted in organized markets
A.   persons live better in some countries than others
B.   comparisons between countries is impossible
C.   international comparisons of per capita GDP are often misleading
D.   some countries are more productive than others
Question #4
Which of the following is counted in GDP?
A.   the cost of government provided social services such as public education
B.   the value of illegal drug sales
C.   the value of volunteer work performed at a homeless shelter
D.   the value of illegally produced goods
Question #5
Intermediate goods, like milk sold by a farmer to a supermarket, are
A.   included if it is imported
B.   are not included in GDP
C.   included in GDP at market value
D.   included in GDP
Question #6
Which of the following is not included in U.S. GDP?
A.   Honda Motor Company in Atlanta, Georgia
B.   A Mexican immigrant working in Los Angeles, CA
C.   Dell computers in India
D.   Dell computers in San Francisco, CA
Question #7
It is difficult to compare the U.S. GDP with other countries' GDP because:
A.   Their economy may have many unorganized markets
B.   All of these
C.   They may calculate GDP using a different time period
D.   They may not calculate GDP annually
Question #8
Which of the following would tend to increase the value of officially measured GDP?
A.   all of these
B.   decriminalization of prostitution
C.   decriminalization of drugs such as marijuana and cocaine
D.   decriminalization of gambling on basketball and football
Question #9
Dissatisfaction with public education has led many parents to try home schooling for their children. If parents cut back on their jobs outside the home in order to spend time teaching their children at home, how will this affect GDP?
A.   GDP will decrease
B.   Real GDP will increase and nominal GDP will decrease
C.   Both real and nominal GDP will increase
D.   GDP will increase
Question #10
Which of the following is counted in GDP?
A.   the value of leisure time
B.   the value of do-it-yourself work
C.   the cost of reconstruction after Hurricane Katrina
D.   the value of cooking your own dinner
Question #11
Gross Domestic Product is a monetary measure of
A.   the total value of all final goods and services
B.   the total value of all foreign sales and purchases
C.   total industrial output
D.   total consumption in the economy
Question #12
Amber grows basil in her backyard garden to use in her homemade pesto sauce. How is this gardening included in GDP?
A.   It is included only when the sauce is completed
B.   It is not included in GDP because it is illegal to grow oregano
C.   It is included as an intermediate good
D.   It is not included in GDP
Question #13
GDP is not a measure of well-being because it does not include:
A.   environmental degradation
B.   college students efforts while studying for macroeconomics
C.   illegal activities such as drug sales
D.   All work outside of the home
Question #14
The Growth rate of GDP over time illustrates that:
A.   GDP fluctuated more intensely during the first half of the 20th century than the second half
B.   GDP grows smoothly during all time periods
C.   GDP was not influenced by the influx of women into the labor market in the 1960s
D.   GDP grows quickly after wartime periods
Question #15
Real GDP is another term for
A.   relative value GDP
B.   current dollar GDP
C.   constant dollar GDP
D.   nominal GDP

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