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

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