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