Multiple choice

1. 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 

2. __________ 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 

3. Which is the smallest?

A. Net domestic product 

B. National income 

C. Government expenditures 

D. Net exports 

4. GDP is a less than perfect measure of economic well-being. It may be faulted for each of these practices EXCEPT that it:

A. does not take leisure time into account. 

B. involves multiple counting. 

C. does not take psychic costs into account.