ECON 200 EXAM 3 UNL QUESTIONS
COMPLETE WITH CORRECT ANSWERS
\.Describe how gross domestic product (GDP) is measured - ANSWERS✔-measures
the current dollar value of production
\.identify GDP's major components - ANSWERS✔-consumption + gross investment
+ government purchases + net exports
\.consumption - ANSWERS✔-all expenditures made by households on goods and
services like clothing, food, electronics, and recreation
\.what is included in consumption? - ANSWERS✔-durable goods + nondurable
goods + services
\.Government expenditure - ANSWERS✔-all final goods purchased by federal,
states and local governments like police officers/tanks and labor resources like
police officers/teachers
\.gross invesetment - ANSWERS✔-the dollar value of all new capital purchased
and the expansion of inventories in an economy
, \.categories of gross investment - ANSWERS✔-business fixed investment,
residential investment, inventory investment
\.business fixed investment - ANSWERS✔-purchases by firms of new capital goods
(ex: offices, factories, tools, machinery)
\.residential investment - ANSWERS✔-purchases of new homes + home
improvements
\.inventory investment - ANSWERS✔-changes in inventories from one year to the
next
\.net investment - ANSWERS✔-gross investment - depreciation (represents the
net change in capital stock during a year)
\.net exports - ANSWERS✔-exports - imports
\.exports - ANSWERS✔-produced domestically and sold abroad
\.imports - ANSWERS✔-produced abroad and sold domestically
\.calculating gross domestic product using expenditures approach - ANSWERS✔-
adding up consumption + gross investment + gov purchases + net exports
COMPLETE WITH CORRECT ANSWERS
\.Describe how gross domestic product (GDP) is measured - ANSWERS✔-measures
the current dollar value of production
\.identify GDP's major components - ANSWERS✔-consumption + gross investment
+ government purchases + net exports
\.consumption - ANSWERS✔-all expenditures made by households on goods and
services like clothing, food, electronics, and recreation
\.what is included in consumption? - ANSWERS✔-durable goods + nondurable
goods + services
\.Government expenditure - ANSWERS✔-all final goods purchased by federal,
states and local governments like police officers/tanks and labor resources like
police officers/teachers
\.gross invesetment - ANSWERS✔-the dollar value of all new capital purchased
and the expansion of inventories in an economy
, \.categories of gross investment - ANSWERS✔-business fixed investment,
residential investment, inventory investment
\.business fixed investment - ANSWERS✔-purchases by firms of new capital goods
(ex: offices, factories, tools, machinery)
\.residential investment - ANSWERS✔-purchases of new homes + home
improvements
\.inventory investment - ANSWERS✔-changes in inventories from one year to the
next
\.net investment - ANSWERS✔-gross investment - depreciation (represents the
net change in capital stock during a year)
\.net exports - ANSWERS✔-exports - imports
\.exports - ANSWERS✔-produced domestically and sold abroad
\.imports - ANSWERS✔-produced abroad and sold domestically
\.calculating gross domestic product using expenditures approach - ANSWERS✔-
adding up consumption + gross investment + gov purchases + net exports
