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Categories of GDP

Last updated almost 7 years ago

5 questions

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Question 1

1.

Ford Motor Company produces $10 milion in automobiles in the US and sells them to customers in China. In which category of GDP will the automobiles count?

 government spending

net exports

consumer spending

investment spending

Question 2

2.

Lockheed produces 45 jets in the US and sells them to the US government. In which category of GDP will the jets count?

government spending

net exports

consumer spending

investment spending

Question 3

3.

The US company, Bob's Candy, produced $25 million worth of peppermint in Mexico this year.

Which of the following statements is TRUE about peppermint?

The peppermint counts as investment spending in  US GDP.

The peppermint counts as an export for US GDP.

The peppermint does not count in US GDP at all.

The peppermint counts counts a consumer spending in US GDP.

Question 4

4.

Real Gross Domestic Product is used to measure the economic goal of

economic growth

price stability

full employment

economic freedom

Question 5

5.

Select the THREE TRUE statements from the list below. They must ALL be correct to get points for the question.

The payment of a Social Security benefit to a retiree counts in the government spending portion of GDP.

The US has a target GDP growth rate of 2-3% per year.

A consumer paying for a new car produced in the US would count in the consumer spending portion of GDP.

A stay-at-home mom adds about $80,000 per year to the investment spending portion of GDP.

Imports count positively toward GDP.

The "real" in real GDP means that prices are held constant  in the measurement.