Pop Quiz economic procedures

Question 1

Consumption

Answer 1

All spending by households on durable goods, nondurable goods, and services

Question 2

Investments

Answer 2

Business spending, including both fixed expenses and inventory

Question 3

Government spending

Answer 3

Expenditures of federal, state, and local governments on goods/services

Question 4

Net export

Answer 4

Goods/services produced in the nation but sold in foreign nations, minus value of imports

Question 5

The market value of all goods and services produced in a nation in a given time period is?

Answer 5

GDP

Question 6

What are the three requirements of GDP

Answer 6

• has to be a final product or service
• must be produced in a given time period
• must be produced withen a national borders