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11) Which of the following transactions is included in Gross Domestic Product?

A) A Social Security check received by a retired couple

B) A gift card that a mother gives her son

C) A used textbook that one student gives another student in exchange for an iPod

D) Tips received by a waitress who reports them to the IRS

12) Which of the following is included in determining Gross Domestic Product?

A) The purchase of a new car

B) The purchase of a used car

C) A housewife preparing breakfast

D) A gardener canning vegetables for consumption during the winter

13) Goods that are used up entirely in the production of final goods are known as

A) durable goods.

B) value added goods.

C) intermediate goods.

D) capital goods.

14) Which of the following would be included when calculating Gross Domestic Product?

A) The purchase of a previously owned house for $70,000

B) The purchase of a used $10,000 automobile

C) A Social Security check for $800

D) none of the above

15) Intermediate goods are NOT included in Gross Domestic Product (GDP) calculations because

A) they are used in the production of final goods and would then be counted twice.

B) they are produced overseas.

C) they are made from foreign raw materials.

D) they have very low value added.

16) If Jack refinished his basement himself, the value of his work

A) is not included in Gross Domestic Product (GDP).

B) is included in Gross Domestic Product (GDP).

C) is only included in Gross Domestic Product (GDP) if he uses U.S. made components.

D) is included in the next year's Gross Domestic Product (GDP).

17) Wheat used for producing bread is

A) a final good.

B) not going to generate any employment.

C) an intermediate good.

D) a durable good.

18) Which of the following transactions would be included in the calculation of Gross Domestic Product (GDP)?

A) The purchase of legal services

B) The purchase of a share of stock in General Motors

C) The purchase of wheat to make bread

D) The purchase of a second-hand lawnmower from your neighbor

19) Which of the following is a final good?

A) Seed used for corn

B) Wheat used for bread

C) Electricity used for producing automobiles

D) A lawn mower purchased by a household

20) The farmer pays 20 cents for the seed that is sold to the miller for 35 cents; the miller makes flour and sells it to the baker for 55 cents. The baker makes bread and sells it to the grocery store for 80 cents and the store sells it to consumers for $1.00. The contribution to Gross Domestic Product (GDP) is

A) $2.90.

B) $1.90.

C) $1.

D) 20 cents.

 

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