Economics Chapter 19 Timed Test

GDP includes spending on recreation and travel, but it does not cover leisure time.

Consumption is the purchase of goods and services by:

The demand measure of GDP accounting adds together:

The gap between exports and imports in a nation's economy is called the ___________.

Which of the following is not counted as a part of GDP?

Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance.

___________ is about two-thirds of the demand side of GDP, but it moves relatively little over time.

Calculate per capita GDP for Ethiopia and Costa Rica.

Which of the following is included in GDP calculations?

The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation.

Which of the following is not included in GDP?

_________ are now the largest single component of the supply side of GDP, representing over half of GDP.

Consumption in the United States is about ____________ of GDP, and it moves relatively little over time.

GDP does not directly include:

The value of what businesses provide to other businesses is captured in the final products at the end of the __________ chain.

Key Concepts of GDP

GDP incorporates spending on recreation and travel, but does not account for leisure time.
Consumption refers to the purchase of goods and services by households.
The demand measure of GDP sums consumption, investment, government purchases, and trade balance.

Trade Balance and Economic Measures

The trade balance indicates the difference between a country's exports and imports.
Certain transactions, like the purchase of stock, are excluded from GDP calculations.

Census and Economic Surveys

The U.S. Census Bureau conducts a comprehensive survey of housing and residential finance every 10 years.

Consumption as a Component of GDP

Consumption accounts for approximately two-thirds of GDP's demand side, showing relative stability over time.
In the U.S., consumption is about 68% of GDP.

Per Capita GDP Calculations

Ethiopia has a GDP of $8 billion with a population of 55 million, resulting in a per capita GDP of $145.
Costa Rica, with a GDP of $9 billion and a population of 4 million, has a per capita GDP of $2,250.

Inclusion and Exclusion in GDP

University tuition payments are included in GDP calculations.
Cash payments to day laborers that are not reported to tax authorities are not included in GDP.
GDP does not directly consider the value of intermediate goods sold within a specific period.

Service Sector in GDP

Services comprise the largest single component of GDP, exceeding half of its total value.

Nominal vs. Real Value

The nominal value of an economic statistic is the actual number reported at a given time, while the real value adjusts for inflation.

Test your knowledge of Chapter 19 in Economics with this timed quiz. It covers key concepts like GDP, consumption, and demand measures. Perfect for reinforcing your understanding and preparation for upcoming assessments.