Macro 2.1-GDP-What Counts Practice

Last updated about 1 year ago

8 questions

Instructions

Which of these is Counted in GDP and Which of These is NOT COUNTED in GDP

Required

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Macro 2.1-GDP-What Counts Practice

Last updated about 1 year ago

8 questions

Instructions

Which of these is Counted in GDP and Which of These is NOT COUNTED in GDP

Required

Question 1

Which of these is Counted in GDP? (Check all that apply.) (Hint: There are 4 of them)

A monthly check received by an economics student who has been granted a government scholarship.

A farmer's purchase of a new tractor

A plumber's purchase of a two-year-old used truck

Cashing a U.S. government bond

The services of a mechanic in fixing the radiator in his own car

A Social Security check from the government to a retired store clerk

An increase in business inventories

The government's purchase of a new submarine for the Navy

A barber's income from cutting hair

Income received from the sale of Nike Stock

KEY!

C=Consumption Spending
I=Investment Spending
G=Government Spending
NX=Net Exports
NC=Not Counted in GDP

Required

Question 2

Which of these is Counted in GDP and part of C? (Check all that apply.) (Hint: There are 4)

You Spend $7 at the movies

A family pays a contractor $200k for a house he built them this year

A family pays $75k for a house built three years ago

An accountant pays a tailor $175 to sew a suit for her

The government increases its defense expenditures by $1 billion

The government makes a $300 Social Security payment to a retired person

You buy General Motors Corp. stock for $1k in the stock market

At the end of the year, a flour-milling firm finds that its inventories of grain and flour are $10k above the amounts of its inventories at the beginning of the year

A homemaker works hard caring for her spouse and two children

Ford Motor Co. buys new auto-making robots

You pay $300 a month to rent an apartment

Apple Computers builds a new factory in the US

RJ Reynolds Co. buys control of Nabisco

You buy a new Toyota that was made in Japan.

You pay tuition to attend college.

Required

Question 3

Which of these is Counted in GDP and part of I? (Check all that apply.) (Hint: There are 4)

A family pays a contractor $200k for a house he built them this year

A family pays $75k for a house built three years ago

The government increases its defense expenditures by $1 billion

The government makes a $300 Social Security payment to a retired person

You buy General Motors Corp. stock for $1k in the stock market

At the end of the year, a flour-milling firm finds that its inventories of grain and flour are $10k above the amounts of its inventories at the beginning of the year

A homemaker works hard caring for her spouse and two children

Ford Motor Co. buys new auto-making robots

Apple Computers builds a new factory in the US

RJ Reynolds Co. buys control of Nabisco

You buy a new Toyota that was made in Japan.

Required

Question 4

Which of these is Counted in GDP and part of G? (Check all that apply.) (Hint: There is only 1)

A family pays $75k for a house built three years ago

The government increases its defense expenditures by $1 billion

The government makes a $300 Social Security payment to a retired person

You buy General Motors Corp. stock for $1k in the stock market

A homemaker works hard caring for her spouse and two children

RJ Reynolds Co. buys control of Nabisco

You buy a new Toyota that was made in Japan.

Required

Question 5

Which of these is Counted in GDP and part of NX? (Check all that apply.) (Hint: There is only 1)

A family pays $75k for a house built three years ago

The government makes a $300 Social Security payment to a retired person

You buy General Motors Corp. stock for $1k in the stock market

A homemaker works hard caring for her spouse and two children

RJ Reynolds Co. buys control of Nabisco

You buy a new Toyota that was made in Japan.

Required

Question 6

We count only the final price of a good or service in GDP? Why?

Required

Question 7

A purely financial transaction will not be counted in GDP? Why?

Required

Question 8

When a home-owner does home-improvement work, the labor is not counted in GDP? Why?

Question 1

Which of these is Counted in GDP? (Check all that apply.) (Hint: There are 4 of them)

A monthly check received by an economics student who has been granted a government scholarship.

A farmer's purchase of a new tractor

A plumber's purchase of a two-year-old used truck

Cashing a U.S. government bond

The services of a mechanic in fixing the radiator in his own car

A Social Security check from the government to a retired store clerk

An increase in business inventories

The government's purchase of a new submarine for the Navy

A barber's income from cutting hair

Income received from the sale of Nike Stock

KEY!

C=Consumption Spending
I=Investment Spending
G=Government Spending
NX=Net Exports
NC=Not Counted in GDP

Question 2

Which of these is Counted in GDP and part of C? (Check all that apply.) (Hint: There are 4)

You Spend $7 at the movies

A family pays a contractor $200k for a house he built them this year

A family pays $75k for a house built three years ago

An accountant pays a tailor $175 to sew a suit for her

The government increases its defense expenditures by $1 billion

The government makes a $300 Social Security payment to a retired person

You buy General Motors Corp. stock for $1k in the stock market

At the end of the year, a flour-milling firm finds that its inventories of grain and flour are $10k above the amounts of its inventories at the beginning of the year

A homemaker works hard caring for her spouse and two children

Ford Motor Co. buys new auto-making robots

You pay $300 a month to rent an apartment

Apple Computers builds a new factory in the US

RJ Reynolds Co. buys control of Nabisco

You buy a new Toyota that was made in Japan.

You pay tuition to attend college.

Question 3

Which of these is Counted in GDP and part of I? (Check all that apply.) (Hint: There are 4)

A family pays a contractor $200k for a house he built them this year

A family pays $75k for a house built three years ago

The government increases its defense expenditures by $1 billion

The government makes a $300 Social Security payment to a retired person

You buy General Motors Corp. stock for $1k in the stock market

At the end of the year, a flour-milling firm finds that its inventories of grain and flour are $10k above the amounts of its inventories at the beginning of the year

A homemaker works hard caring for her spouse and two children

Ford Motor Co. buys new auto-making robots

Apple Computers builds a new factory in the US

RJ Reynolds Co. buys control of Nabisco

You buy a new Toyota that was made in Japan.

Question 4

Which of these is Counted in GDP and part of G? (Check all that apply.) (Hint: There is only 1)

A family pays $75k for a house built three years ago

The government increases its defense expenditures by $1 billion

The government makes a $300 Social Security payment to a retired person

You buy General Motors Corp. stock for $1k in the stock market

A homemaker works hard caring for her spouse and two children

RJ Reynolds Co. buys control of Nabisco

You buy a new Toyota that was made in Japan.

Question 5

Which of these is Counted in GDP and part of NX? (Check all that apply.) (Hint: There is only 1)

A family pays $75k for a house built three years ago

The government makes a $300 Social Security payment to a retired person

You buy General Motors Corp. stock for $1k in the stock market

A homemaker works hard caring for her spouse and two children

RJ Reynolds Co. buys control of Nabisco

You buy a new Toyota that was made in Japan.

Question 6

We count only the final price of a good or service in GDP? Why?

Question 7

A purely financial transaction will not be counted in GDP? Why?

Question 8