GDP

Question 1

GDP

Answer 1

Gross Domestic Product: a monetary measure of the market value of all the final goods and services produced and sold in a specific time period by countries.

Question 2

Final Good

Answer 2

A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs. Example: Dishwasher

Question 3

Intermediate Good

Answer 3

Used to produce other goods. Example: Cake Mix

Question 4

GDP Equation

Answer 4

The total market value of final goods and services produced in the economy during a period of time.

Question 5

Your father buys a new John Deere riding lawn mower.

Answer 5

Final Good.

Question 6

Business Cycle

Answer 6

Fluctuations in economic activity, such as employment and production.

Question 7

Business Cycle Expansion

Answer 7

A period during which total production and total employment are increasing.

Question 8

During a business cycle expansion, total production _______ and the total employment _______

Answer 8

Increases and Increases

Question 9

GDP does not include

Answer 9

household production

Question 10

The size of the underground economy would tend to decrease if the government of a country

Answer 10

decreased government regulations on business.

Question 11

Suppose Bob works for Mary as a proofreader. Mary and Bob marry and have six children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?

Answer 11

GDP will decrease