Econ 104 Quiz 1 || Already Passed.
Question : GDP
Correct answer: the total market value of all final goods and
services produced annually in an economy
Question : GDP per capita
Correct answer: Gross domestic product divided by the
number of people in the population, represents average national income
Question : Capital (K)
Correct answer: manufactured goods owned by firms to
produce other goods and services
Question : Investment (I)
Correct answer: spending on capital equipment, inventories,
and structures, including household purchases of new housing
Question : Intermediate Goods
Correct answer: products that are purchased for resale or
further processing or manufacturing
Question : Final Goods
Correct answer: goods and services that have been purchased
for final use and not for resale or further processing or manufacturing
Question : GDP by Production
Correct answer: the market value of all final goods and
services produced domestically in that year
Question : GDP by Expenditures
Correct answer: the total amount of money spent by
households and the government on goods and services in a year
Question : Consumption (C)
Correct answer: the purchase of final goods and services by
households, excluding new housing
Question : Government Expenditures (G)
Correct answer: Cash spent by a government in one year, G =
purchases + transfers + interest payments
Question : GDP by Income
Correct answer: GDP measured by the total income of
households and firms in an economy in a year
Question : Income
Correct answer: money received, especially on a regular
basis, for work or through investments the value of income will always equal the market value and the value of dollars spent per transaction
Question : Circular Flow
Correct answer: the pattern in which goods and services and
resources flow in the marketplace
Question : Market Value
Correct answer: the amount for which something can be sold
on a given market.
Question : Uses of GDP
Correct answer: To describe a short-run window of data, often
to predict economic expansion or contraction; show living standards; demonstrate economic growth rates
Question : Real GDP
Correct answer: the production of goods and services valued
at constant prices set in a base year
Question : Nominal GDP
Correct answer: the value of final goods and services
evaluated at current-year prices
Question : Economic Growth
Correct answer: an increase in the amount of goods and
services produced per capita over a period of time