Economics: The Basics 1st Edition by Mike Mandel

Exercise 4

Say whether each of the following statements is true or false.
a) Economists had no systematic way of tracking the economy before the mid-1930s.
b) Economic statistics help assess the ability of a country to fight wars.
c) Personal consumption includes goods and services bought by businesses.
d) Gross domestic product in 2007 was $13.8 billion.
e) Only final goods and services are counted in GDP.
f) Casino gambling is not counted in GDP because it serves no useful purpose.
g) When Ikea, the Swedish furniture company, built a new furniture factory in Danville, Virginia.
h) Renovating your kitchen counts as part of personal consumption.
i) Gross domestic purchases includes the goods and services we buy from overseas.
j) India has the second largest economy in the world.
k) GDP drops when a person quits a paying job to care for ailing parents.