Mod 10 Quiz 2

Government borrowing is:

• the amount of funds raised by government in the financial markets.

• the amount of government spending on goods and services.

• the amount of government tax revenues collected.

• the amount of government spending on transfer payments.

• the amount of new money the government prints to pay the nation’s bills.

A country's exports minus its imports during a period are:

• net exports.

• gross exports.

• net imports.

• gross imports.

• direct foreign investment.

GDP is the:

• total market value of all final goods and services produced in one year.

• total accumulated wealth of an economy.

• volume of all dollar transactions made in an economy in one year.

• dollar amount of all sales made in the economy in one year.

• total quantity of money in circulation in the economy in one year.

Transfer payments:

• are a means by which government raises funds.

• represent a redistribution of funds from one individual to another individual in the economy.

• are counted in GDP.

• is another term for government taxation.

• reduce a household’s ability to purchase goods and services.

Disposable income refers to:

• income spent on imports.

• household income plus government transfers less taxes paid to the government.

• gross income.

• government transfer payments.

• consumption spending plus taxes paid to the government.