6.03_EC917 H. Marketing Applications Review

Which of the following would provide you with information about the health of the U.S. economy?

• Population data

• Economic order quantity

• Gross domestic product

• Medium of exchange

Marcus bought a new bicycle with special tires. In economic terms, the tires on this bike are considered

• intermediate products

• capital goods

• accessory items

• uncounted production

A country's gross domestic product is expressed in

• the number of items produced

• the number of transfer payments

• percentages

• dollars

GDP figures for the United States include the value of

• goods that are not sold in the marketplace

• all production for which money is exchanged and receipts are kept

• transfer payments

• transactions for which no receipts are kept

Honda is a Japanese firm that produces some of its cars in Ohio. In calculating GDP, the Ohio-produced cars would be part of

• GDP for Japan

• double counting

• the underground economy

• GDP for the United States

What category of GDP would include the money Kathy’s family pays to the state university for her college tuition?

• Gross private domestic investment

• Government purchases of goods and services

• Personal consumption expenditures

• Net exports of goods and services

Mr. Barnes has bought several rental properties. The money Mr. Barnes spent to buy these buildings would be included in which category of GDP?

• Government purchases of goods and services

• Gross private domestic investment

• Net exports of goods and services

• Personal consumption expenditures

Octavia’s father receives veterans’ benefits, and her grandmother gets Social Security. Are these payments counted in GDP?

• Yes, these are government purchases.

• Yes, these funds are for personal consumption.

• No, the recipients produce goods and services.

• No, these are transfer payments.

A country’s net exports are a negative figure in GDP calculations whenever

• importers are greater than exports.

• business inventories decrease.

• there is a trade surplus.

• uncounted production declines.

As a favor, Felicia agreed to clean the house for her mother each week. In terms of GDP, the work Felicia does would be part of

• the underground economy.

• residential investment.

• uncounted production.

• total output.