The GDP is the value of all final goods and servicesproduced:
A. within the nations boundaries.
B. by domestically owned companies.
C. by citizens of the country.
D. by domestically controlled companies.

Question 2 of 20
Net domestic product is usually preferred to GDP by economistsbecause net national product:
A. includes depreciation.
B. excludes depreciation.
C. includes indirect business taxes.
D. excludes indirect business taxes.

Question 3 of 20
The largest item amount among those listed here is:
A. national income.
B. net interest.
C. net domestic product.
D. corporate profits.

Question 4 of 20
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 5 of 20
The smallest component of national income is:
A. rent.
B. interest.
C. profits.
D. salaries and wages.

Question 6 of 20
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, multinationalcompanies with offices and factories abroad.

Question 7 of 20
Which of the following is the best example of an intermediateproduct?
A. A road
B. Steel
C. Bread
D. A TV set

Question 8 of 20
Which of the following would increase GDP?
A. More imports
B. Additional leisure time
C. Government removing more litter
D. People engaging in more “do-it-yourself” projects

Question 9 of 20
National income accountants can avoid multiple accounting by:
A. including transfers in their calculations.
B. counting both intermediate and final goods.
C. only counting final goods.
D. only counting intermediate goods.

Question 10 of 20
The concept of “net domestic investment” refers to:
A. the amount of machinery and equipment used up in producing theGDP in a given year.
B. the difference between the market value and book value ofoutstanding capital stock.
C. gross domestic investment less net exports.
D. total investment less the amount of investment goods used up inaccomplishing the year’s production.

Question 11 of 20
GDP can increase at a faster rate than real GDP only if:
A. there is inflation.
B. the unemployment rate is increasing.
C. the value of the dollar is stable.
D. the population is growing.

Question 12 of 20
Which statement is true?
A. GDP is a virtually perfect measure of national output.
B. GDP takes into account pollution, crime, and even personalsatisfaction.
C. GDP is a single number that seeks to measure our nationaloutput.
D. There is no relationship between our GDP and our nationaloutput.

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