ECON 1002 MICROECONOMICS EXAM 2
EXAM SCRIPT 2026 FULL QUESTIONS WITH
CORRECT ANSWERS
◉ Aggregate output is the primary measure of the economy's ______.
Answer: total output of goods and services.
◉ In national income accounts, what does value added refer to?
Answer: The difference in the market value and cost of inputs
purchased from other firms.
◉ Including the value of _____ (one word) goods along with the value
of final goods in the calculation of GDP would amount to multiple
counting of goods and distort GDP. Answer: intermediate
◉ Government transfer payments include all of the following except:
Answer: wage payments to police officers
◉ National _______ accounting measures the overall performance of
the economy. Answer: income
◉ The view of GDP as the sum of money spent on purchases is called
the ______ approach. Answer: expenditures
, ◉ The primary measure of the economy's performance is its annual
total output of goods and services, which is called its ______. Answer:
aggregate output
◉ In order to determine GDP using the expenditures approach, all
spending on ______ goods and services, not intermediate goods, is
added up. Answer: final
◉ The market value of a firm's output minus the value of the inputs
the firm has bought from others is called ______. Answer: value added
◉ Gross domestic product calculations count only final goods and
services because ______. Answer: counting all intermediate goods and
services would lead to double-counting of many activities
◉ Which of the following is not an example of a personal
consumption expenditure? Answer: A fighter jet.
◉ Social Security payments, welfare payments, and veterans'
payments that the government makes directly to households are
called government public _____ payments. Answer: transfer
EXAM SCRIPT 2026 FULL QUESTIONS WITH
CORRECT ANSWERS
◉ Aggregate output is the primary measure of the economy's ______.
Answer: total output of goods and services.
◉ In national income accounts, what does value added refer to?
Answer: The difference in the market value and cost of inputs
purchased from other firms.
◉ Including the value of _____ (one word) goods along with the value
of final goods in the calculation of GDP would amount to multiple
counting of goods and distort GDP. Answer: intermediate
◉ Government transfer payments include all of the following except:
Answer: wage payments to police officers
◉ National _______ accounting measures the overall performance of
the economy. Answer: income
◉ The view of GDP as the sum of money spent on purchases is called
the ______ approach. Answer: expenditures
, ◉ The primary measure of the economy's performance is its annual
total output of goods and services, which is called its ______. Answer:
aggregate output
◉ In order to determine GDP using the expenditures approach, all
spending on ______ goods and services, not intermediate goods, is
added up. Answer: final
◉ The market value of a firm's output minus the value of the inputs
the firm has bought from others is called ______. Answer: value added
◉ Gross domestic product calculations count only final goods and
services because ______. Answer: counting all intermediate goods and
services would lead to double-counting of many activities
◉ Which of the following is not an example of a personal
consumption expenditure? Answer: A fighter jet.
◉ Social Security payments, welfare payments, and veterans'
payments that the government makes directly to households are
called government public _____ payments. Answer: transfer
