Ch 7 Measuring GDP

What does microeconomics study?

• The study of national economic policies

• The study of how households and firms make decisions and how they interact in markets

• The study of international trade

• The study of aggregate consumption and production at a national level

What is the focus of macroeconomics?

• The study of individual markets and consumer behavior

• The study of small-scale economic units like households and firms

• The study of aggregate consumption, production, and prices at a national level and their effects on the whole economy

• The study of specific company's financial performance

Who is known as the founder of modern macroeconomics?

• Adam Smith

• David Ricardo

• John M. Keynes

• Milton Friedman

What does modern macroeconomics focus on?

• The performance of individual companies

• The overall level of economic activity

• The stock market trends

• International trade agreements

Which of the following is NOT one of the three major aspects of overall performance in modern macroeconomics?

• Measurements

• Policies

• Modelling

• Consumer behavior

What is Gross Domestic Product (GDP) commonly used to measure?

• The total population of a country

• The total income of a country

• The total exports of a country

• The total area of a country

Why is GDP considered to be the best single measure of a country's economic well-being?

• It measures the country's technological advancement

• It indicates the country's military strength

• It is the most closely watched economic statistic

• It reflects the country's cultural influence

What does GDP include in its calculation?

• Sum of market values of all intermediate goods/services produced within a country

• Sum of market values of all final goods/services consumed by the government

• Sum of market values of all final goods/services produced within a country in a given time period

• Sum of market values of all imported goods/services

What does GDP stand for?

• General Development Process

• Gross Domestic Product

• Government Debt Percentage

• Generalized Data Protocol

What does GDP not account for in its measurement?

• The value of final goods and services

• The value of intermediate goods and services already included in final goods

• The inventory of goods to be sold at a later date

• The value of all goods and services produced and sold