Question 1

With respect to the business cycle,describe the difference between the expansion phase and the recovery phase.

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Question 2

List and explain the two different approaches used to measure GDP.

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Question 3

List and describe four of the six categories of economic exchanges that are omitted from GDP calculations.Explain why these transactions are not included in GDP and give an example of each to help support your answer.

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Question 4

Given that GDP is a measure of what is produced in a country,explain how the expenditure approach can measure GDP.How are items produced,but not yet sold,accounted for in the expenditure approach?

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Question 5

Describe the three different reasons that investment can rise.Explain how one of these three changes could be undesirable in terms of promoting the economic health and strength of the economy.

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Question 6

Explain why GDP figures do not necessarily measure happiness or well-being.

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Question 7

Draw an appropriate diagram to represent the business cycle and label each of the five phases.Provide a brief description of each phase.

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Quiz 7: Consumer Choice: Maximizing Utility and Behavioral Economics