Multiple choice

Question 1 

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. 

D. does not take psychic income into account. 

Question 2 

Net domestic product is equal to:

A. gross national product. 

B. the inflation rate. 

C. national income (NI) plus corporate profits taxes. 

D. NI plus indirect business taxes. 

Question 3 

We do NOT count __________ as part of GOP

A. price increases 

B. transfer payments 

C. final goods 

D. depreciation 

Question 4 

About seven out of ten dollars of our GDP is spent on:

A. government purchases. 

B. net exports. 

C. investment spending. 

D. consumer goods.