Question

11) Gross Domestic Product (GDP) is An thetotal wholisagoods and services producedby fciors oduion owned by citizens of a nation. B) the total market value of all services produced by factors of production located within a nation's borders. C) the total market value of all goods produced within a nation's borders. D) the total market value of all final goods and services produced by factors of production located within a nation's borders. 12) Intermediate goods are A) goods that are used up entirely in the production of final goods. B) the stock of all resources excluding labor. C) goods that get sold to the U.S. government. D) equal to the receipts of firms. 13) Suppose that for the economy of Springfield, we have the following information for 2013: consumption expenditures $4,000; wages $3,500; gross private domestic investment $1,300; government expenditures $2,000; exports $900; imports $1,100. Using the expenditure approach what would the Gross Domestic Product (GDP) be for Springfield in 2013? A) $6,200 B) $7,100 C) $7,500 D) $10,600 E) $12,800 14) Net domestic product (NDP) is A) Gross Domestic Product (GDP) minus depreciation. B) Gross Domestic Product (GDP) minus private investment. C) Gross Domestic Product (GDP) minus the foreign sector. D) Gross Domestic Product (GDP) minus government transfers. 15) The components of the expenditure approach to measuring Gross Domestic Product (GDP) include all of the following EXCEPT A) government purchases of goods and services. B) government Social Security payments. C) durable consumer goods. D) nondurable consumer goods.

Answer 1

11) D-GDP is the market value of all final goods and services produced in a country during a year.

12)A- Intermediate goods are those which are used to produce final goods. Eg flour to make a cake.

13)D $10,600

Consumption expenditure+Government expenditure+Gross private domestic investment+wages+exports-imports

4000+2000+1300+3500+900-1100=$10600

14)A-NDP=GDP-Depreciation

15)B Social security schemes are transfer payments and not included in GDP