If an economy’s GDP rises, then it must be the case that the economy’s______________
A. income rises and saving falls.
B. income and saving both rise.
C. income rises and expenditure falls.
D. income and expenditure both rise.
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Most goods and services produced at home______________
A. and most goods and services produced illegally are included in GDP.
B. are included in GDP while most goods and services produced illegally are excluded from GDP.
C. are excluded from GDP while most goods and services produced illegally are included in GDP
D. and most goods and services produced illegally are excluded from GDP.
Rachel babysits for her sister for no pay. When she babysits for someone else she charges $8 an hour. When is Rachel’s babysitting included in GDP?______________
A. When she babysits for her sister and when she babysits for someone else.
B. When she babysits for her sister, but not when she babysits for someone else.
C. When she babysits for someone else, but not when she babysits for her sister.
D. Neither when she babysits for her sister nor for someone else.
Which of the following is not included in GDP?______________
A. carrots grown in your garden and eaten by your family
B. carrots purchased at a farmer’s market and eaten by your family
C. carrots purchased at a grocery store and eaten by your family
D. None of the above are included in GDP.
For the purpose of calculating GDP, investment is spending on______________
A. stocks, bonds, and other financial assets.
B. real estate and financial assets such as stocks and bonds.
C. capital equipment, inventories, and structures, including household purchases of new housing.
D. capital equipment, inventories, and structures, excluding household purchases of new housing.
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