GDP
Net Exports and More GDP
Poverty Rate
Combating Poverty
100
A GDP measures:
A. The wealth of the top 5% of earners in an economy
B. The performance of the top five-hundred corporations in an economy
C. The dollar value of all final goods/services a country makes in a year
D. The price of goods typically purchased by one household in an economy
C
100
An export is:
A. Something manufactured in your country and sold to another country
B. Something manufactured in another country and sold in your country
C. Something manufactured in your country by a foreign company
D. Something manufactured in another country by a company from your country
A
100
A "poor" family:
A. Does not have enough money to afford basic necessities like shelter and food
B. Might have to go without electricity, internet, running water, or food for long periods of time
C. Is more likely to be preyed upon by shady financial institutions and lotteries
D. All of the above
D
100
How do food stamps help poor families?
Helps them buy food
200
Only final goods are included in GDP; for example, a car sold to a consumer.
Give an example of an intermediate good.
A part used in the construction of a car.
Any other goods used in the creation of other goods.
200
Net exports =
A. Imports - exports
B. Exports - imports
C. Exports * investment
D. Exports of fishing gear
B
200
Name a "risk factor" or trait that is commonly associated with poverty.
Single parent household
Race
Inner-city/Rural
Little education
Child
200
How do public defenders help serve poor communities?
They provide free legal representation for people who cannot afford a lawyer. Everyone gets legal representation, regardless of wealth.
(That said, most public defenders are less skilled than more expensive lawyers).
300
If a Japanese car company builds and sells a $50,000 car in the United States, how much does each country's GDP increase by?
US: $50,000
Japan: $0
300
If the US exports only $50,000 in apples and imports only $60,000 in lima beans, calculate their total net exports.
-$10,000
300
True or false: 50% of "poor" households have at least one parent who is working.
True
300
Every child in the country is entitled to:
A. Free breakfast, lunch, and dinner if their family is poor
B. Free education and school lunches
C. Free admittance to any private school or college, if the student can prove their abilities
D. All of the above
B
400
Imagine a country's economy which is entirely dependent on reselling iPhones and used books. Thousands of tourists come to this country every year to get discounted iPhones and rare books, generating $3 billion a year in sales. What is the GDP for this country?
$0
400
What happens to inflation when aggregate demand shifts to the right?
Increases
400
Roughly what percent of Americans live in poverty?
11% (10 is fine)
400
Completing college (compared to dropping out of high school) can increase your expected salary by roughly:
A. 50%
B. 100%
C. 200%
D. 500%
C
500
GDP = Consumption + Investment + Government Spending + Net Exports
Consider an economy where these are the only transactions in a given year:
Someone buys crayons for $10
Someone in the neighborhood mows lawns for $100, but does not report it in his taxes
A company buys $50,000 of computers for its workers
A city builds a new bridge for $5,000,000
A company produces 10 cars locally and sells each for $40,000. 5 are sold within the country, and 5 are sold overseas.
Calculate the country's Consumption, Investment, Government Spending, and Net Exports, as well as GDP.
GDP: $5,450,010
Consumption: $800,010
Investment: 50,000
Government: $5,000,000
Net Exports: $800,000
500
Consider the following two economies and calculate their GDPs.
USA:
Sells $1,000 of apples to Americans
Sells $10,000 of apples to China
A Chinese-owned factory located in the US produces $1,000,000 of cars, all of which are sold in the US
China:
Sells $10,000 of lima beans to Chinese people
Sells $100,000 of lima beans to the US
Apple (American owned) has factories in China that produce $2,000,000 of iPhones that are sold in the US
USA: -$1,089,000
500
The federal minimum wage is $15,080 a year and the poverty line for a family of four is $32,150. How many full-time minimum wage jobs would a person need to work to support a family of four?
Three, and the family would still be lower class.
500
The wealthiest half of the country holds what percent of U.S. wealth?
97.5%