Imagine a two-good economy where the quantity
of the goods produced is unchanged over time,
but where prices have increased. Then, in the
most recent year, real GDP will be
a) The largest number when using the Fisher
index.
b) The largest number when using the Laspeyres
index.
c) The largest number when using the Paasche
index.
d) The same no matter what index used.
Which of the following does NOT increase
U.S. GDP?
a) The U.S. government purchases a tank from
a U.S. company.
b) The U.S. government increases social
security payments.
c) The U.S. government increases funding for tax
policy research at a U.S. university.
d) The French government purchases a tank
from a U.S.-based company.
Which of the following is NOT an example
of capital?
a) Machines at an automobile factory
b) An automobile factory building
c) Screws and bolts used for making cars
at an automobile factory
d) A plant manager’s computer
A construction company produces a $200,000
house using $50,000 worth of wood and steel.
The value added by the construction company is
a) $200,000
b) $150,000
c) $100,000
d) $50,000
Which of the following counts as
investment?
a) You buy a stock.
b) You buy a computer to use for fun at
home.
c) You buy a new house.
d) All of the above.
Recently, the largest share of GDP is
a) Consumption.
b) Government purchases.
c) Investment.
d) Net exports.
Under national income accounting, GDP
equals
a) The goods produced in the economy.
b) The income earned in the economy.
c) The total purchases in the economy.
d) All of the above