Module 38
Module 38 continued
Module 39
Module 39 Continued
Module 40
100
A country's __________ is the total dollar value of all final goods and services produced within the country's borders in a given year.
What is Gross Domestic Product
100
GDP = wages + rent + interest + profit is represents the __________ approach.
What is Income approach.
100
____ ______ ___ _____ is output per person, calculate as real GDP divided by the total population. Where this is high, people generally live more comfortable lives.
What is Real GDP per Capita.
100
An increase in a country’s capital per worker is called _______________________. a. capital deepening. b. real GDP. c. productivity. d. infrastructure.
What is a. capital deepening.
100
An alternating period of rising and falling real GDP is known as: a. a business cycle. b. a recession. c. a depression. d. a trough.
What is a. business cycle.
200
Goods, services, and intermediate products bought by people in other countries are called: a. imports b. exports c. investment d. inventory
What is b. exports
200
The ______ economy represent business activity conducted without the knowledge of the government . i.e sale of items by unlicensed street vendors, or barter exchanges.
What is the underground economy
200
______________________ is a sustained increase in real GDP over time. a. Inflation b. Deflation c. Economic growth d. Recession
What is c. Economic growth
200
The term for capital being used up in the production process is known as: a. investment. b. physical capital. c. creative destruction. d. depreciation.
What is d. depreciation.
200
___________________________ is the total output the country’s firms are willing and able to produce, contingent on the price level. a. Aggregate demand b. Aggregate supply c. Real GDP d. Nominal GDP
What is b. Aggregate supply
300
Calculating GDP by using the equation C + I + G + (X-M) shows the ____________ approach.
What is the expenditure approach
300
A new phone system purchased by a software manufacturer is considered to be: a. consumption spending. b. investment spending. c. government spending. d. a transfer payment.
What is b. investment spending.
300
_________________ is the amount of output the average worker can produce in an hour. a. GDP per capita b. real GDP per capita c. productivity d. economic infrastructure
What is c. productivity
300
Which of the following is NOT one of the Four Pillars of Economic Growth? a. physical capital b. human capital c. not having any taxes d. technological change
What is c. not having any taxes
300
During the ______________________ of the business cycle, real GDP ________________. a. expansion; rises b. expansion; falls c. expansion; remains constant d. contraction; rises
What is a. expansion; rises
400
Investment spending represents spending on: a. stocks. b. mutual funds. c. bonds. d. productive physical capital.
What is d. productive physical capital
400
_______ GDP, values each good at the dollar price it actually sold for in the year in which it was produced.
What is Nominal GDP
400
The total amount of physical capital in a country is called its ___________________. a. GDP. b. level of productivity. c. standard of living. d. capital stock.
What is d. capital stock.
400
Countries with high GDP per capita tend to have high: a. poverty rates b. under 5 mortality rates c. literacy rates d. resource deposit rates
What is c. literacy rates
400
The aggregate supply curve shows the relationship between the aggregate output supplied and: a. inflation. b. the price level. c. employment. d. unemployment.
What is b. the price level.
500
Which of the following would be included in U.S. GDP? a. transfer payments such as Social Security b. unpaid volunteer work c. the sale of an existing home d. the sale of a new home
What is d. the sale of a new home
500
Name two items not included as part of GDP.
What is Unpaid work: household chores, volunteer work Purely financial transactions: purchase of corporate stock, bonds, gold, or real estate Sale of used goods: secondhand cars, furniture, or homes, already counted in GDP Foreign production Transfer payments such as Social Security payments
500
The rule of law states: a. rick countries have fairer laws than poor countries. b. government has the right to make laws. c. sound governance is vital to economic growth. d. no person is above the law.
What is d. no person is above the law.
500
The foundation for the development of human capital is: a. health care b. long life expectancy c. productivity d. education
What is d. education
500
The final say on whether a contraction has become a recession is determined by: a. Congress. b. The President. c. The Labor Department. d. The National Bureau of Economic Research.
What is d. The National Bureau of Economic Research.
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