Multiple choice

Question 1

Which statement is true?

A. GDP is a virtually perfect measure of national output. 

B. GDP takes into account pollution, crime, and even personal satisfaction. 

C. GDP is a single number that seeks to measure our national output. 

D. There is no relationship between our GDP and our national output. 

Question 2 

Which of the following is an intermediate good or service?

A. A paint gun purchased by Handy Andy 

B. A dozen boxes of Girl Scout cookies purchased by your instructor 

C. A computer purchased by a farmer in Smallville, Kansas 

D. Glue purchased by McGraw-Hill to bind your textbook 

Question 3 

__________ is the market value of a firm’s output less the value of the inputs the firm has bought from the previous seller.

A. Value added 

B. Net Domestic Product 

C. Real GDP 

D. Genuine Progress Index 

Question 4 

Which is the smallest?

A. Net domestic product 

B. National income 

C. Government expenditures 

D. Net exports