Question 1

How are final goods and services valued when measuring nominal GDP?

Accepted Answer

Nominal GDP measures the value of final goods and services produced within a given period of time at current market prices. Therefore, the correct valuation method is at current market prices (choice D).

Question 2

To calculate GDP it is necessary to add up the market value of all the ________ produced within a country during a year.

Accepted Answer

GDP only includes the market value of final goods and services produced within a country during a specific period of time, usually a year. Intermediate goods and services are excluded because their value is already accounted for in the final goods and services they are used to produce. GDP includes both goods and services.

Question 3

If you make dinner for yourself,

Accepted Answer

The GDP includes the market value of goods and services produced within a country. When you buy ingredients, their market value is included in GDP as they are final goods purchased in the market. However, your personal labor in preparing the meal is not a market transaction and thus not included in GDP.

Question 4

Wobet is a small country that produces only steak and potatoes.Steaks have a price of $10 each and potatoes have a price of $1 each.Suppose that Wobet produces 10 steaks and 20 potatoes in 2010.Using ________,Wobet has GDP equal to ________.

Accepted Answer

GDP can be calculated using market value, which is the price of goods times the quantity produced. In this case, (10 steaks * $10) + (20 potatoes * $1) = $100 + $20 = $120.

Question 5

A restaurant buys fish to offer as a daily menu special.The purchase of the fish by the restaurant is

Accepted Answer

The answer of A restaurant buys fish to offer as...

Question 6

Which of the following is included in Germany's GDP?
i.BMWs produced in a German-owned factory in South Carolina
ii.The value of the shares sold on the German stock exchange,the Frankfurt Stock Exchange
iii.China produced by the English-owned Wedgewood Company at a factory in Berlin,Germany

Accepted Answer

GDP includes the value of goods and services produced within a country's borders. Therefore, the china produced in Berlin by the English-owned company is included in Germany's GDP.

Question 7

Which of the following is NOT directly included in Australia's GDP?

Accepted Answer

GDP measures the total value of all goods and services produced within a country's borders. It includes final goods and services but not intermediate goods like popcorn purchased by a movie theatre chain, which is considered an intermediate good because it is used to produce a final service (watching a movie).

Question 8

Which of the following is a final good or service?

Accepted Answer

A new replacement muffler installed by Midas Mufflers is a final good because it is sold to the end consumer for use, not for further production or resale.

Question 9

Which of the following is included in Australia's GDP?
i.The rental value of homes owned by Australian citizens
ii.The production of Cotton On t-shirts by their suppliers in India
iii.Tickets sold by Usher for concerts held in Sydney

Accepted Answer

Australia's GDP includes the rental value of homes owned by Australian citizens (i) and tickets sold for concerts held in Sydney (iii), as both are domestic economic activities. The production of t-shirts by suppliers in India (ii) is not included as it is not produced within Australia.

Question 10

Gross domestic product is equal to the market value of all the final goods and services ________ in a given period of time.

Accepted Answer

GDP is the market value of all the final goods and services produced within a country in a given period of time. It includes goods and services that are produced domestically, regardless of whether they are consumed or exported. Therefore, option D is the correct choice as it mentions "produced within a country".

Question 11

GDP includes the goods and services produced

Accepted Answer

GDP includes all goods and services produced within a country's borders, regardless of the citizenship of the producer. Therefore, choice E is the best option.

Question 12

Which of the following would NOT be directly included in Australia's GDP in 2016?

Accepted Answer

Intermediate goods like jet fuel purchased by Qantas are not directly included in GDP as they are used in the production of final goods and services.

Question 13

GDP is best defined as the ________ in a given time period.

Accepted Answer

GDP (Gross Domestic Product) is the market value of all final goods and services produced within a country in a given time period. It only includes final goods and services, meaning goods that are sold to the end user rather than being used in the production of another good. It also only includes goods and services produced within the country's borders, regardless of the nationality of the producers.

Question 14

Gross domestic product measures the

Accepted Answer

Gross domestic product measures the market value of the final goods and services produced in a given year within a country. It is a measure of the country's economic output.

Question 15

Gross domestic product is the market value of all ________ produced within a country in a given period of time.

Accepted Answer

Gross domestic product measures the market value of all final goods and services produced within a country during a given period of time. It excludes intermediate goods and services as they are already included in the value of the final goods and services.

Question 16

A measure of a country's production is its

Accepted Answer

Gross domestic product (GDP) is the market value of all final goods and services produced within a country in a given period of time (usually a year). It is considered the most comprehensive measure of a country's economic output. Option A, C, D, and E do not accurately describe the measure of a country's production.

Question 17

Which of the following is classified as a final good or service?
i.Oranges bought by Boost Juice to use in fresh juices.
ii.Software to be installed in a new Dell computer.
iii.Your purchase of an online subscription to The Australian newspaper.

Accepted Answer

A final good or service is one that is consumed by the end user and does not require any further processing. The online subscription to The Australian newspaper is a final service consumed by the end user. The oranges and software are intermediate goods used in the production of other goods and services.

Question 18

Consumption expenditure includes spending

Accepted Answer

Consumption expenditure refers to the spending by households on goods and services for their own personal use, such as food, clothing, and entertainment. It does not include spending by firms or governments.

Question 19

Which of the following is classified as an intermediate good?
i.Your purchase of a Big Mac.
ii.McDonald's purchase of pickles.
iii.A McDonald's restaurant owner's interest payment for the loan on her building.

Accepted Answer

Intermediate goods are those used in the production of final goods. McDonald's purchase of pickles is an intermediate good because they are used to make the Big Mac, which is the final product.

Question 20

Gross domestic product is defined as the market value of all the final goods and services produced during a given time period

Accepted Answer

Gross domestic product (GDP) is the market value of all the final goods and services produced within a country during a given time period. It includes goods and services produced by both citizens and non-citizens, as long as they are produced within the country's borders. Therefore, choice D is the best answer. The other choices either specify only citizens or include goods and services produced outside the country's borders.

Quiz 5: Gdp: a Measure of Total Production and Income