Macro Chapter 5

Which term refers to the total market value of all final goods and services produced within a country in a given period?

• Net exports

• Gross domestic product

• Capital good

• Value added

What is the definition of "market value" in macroeconomics?

• The price of intermediate goods only

• The total value of goods and services measured in monetary terms

• The value of goods produced for export

• The cost of labor in production

Which of the following best describes "final goods or services"?

• Goods used to produce other goods

• Goods and services purchased by the end user

• Goods sold to other firms for further processing

• Goods that are resold in the market

What are "intermediate goods or services"?

• Goods used directly by consumers

• Goods used in the production of final goods

• Goods that are exported to other countries

• Goods that are counted in GDP

A "capital good" is best defined as:

• A good consumed immediately

• A good used to produce other goods and services

• A good imported from abroad

• A good that is not included in GDP

Which of the following is the correct definition of "value added"?

• The total sales revenue of a firm

• The difference between a firm's sales and the cost of intermediate goods

• The total cost of labor in production

• The sum of all final goods produced

"Consumption expenditure" refers to:

• Spending by businesses on capital goods

• Spending by households on goods and services

• Spending by the government on public goods

• Spending on exports

Which of the following is considered "investment" in macroeconomic terms?

• Buying stocks and bonds

• Spending on new capital equipment and structures

• Purchasing imported goods

• Government transfer payments

"Government purchases" in GDP accounting include:

• All government spending, including transfer payments

• Spending on goods and services by the government

• Only military expenditures

• Only spending on infrastructure

What does "net exports" represent in the calculation of GDP?

• The total value of imports

• The difference between exports and imports

• The sum of all exports

• The value of goods produced domestically