Multiple choice

Question 1

Which is NOT counted in GDP?

A. A Social Security check sent to a retiree 

B. Government spending on highway building 

C. Money spent on an airline ticket 

D. Money spent by a company to build a new office park 

Question 2

The smallest component of national income is:

A. rent. 

B. interest. 

C. profits. 

D. salaries and wages. 

Question 3

Our GDP includes all the output produced by Americans:

A. and foreigners within our borders. 

B. within our borders. 

C. within our borders and abroad. 

D. within our borders and by American-owned, multinational companies with offices and factories abroad. 

Question 4

Which of the following is the best example of an intermediate product?

A. A road 

B. Steel 

C. Bread 

D. A TV set