Goffe Econ 104 Quiz 1 Exam Questions and Answers
GDP - -the total market value of all final goods and services produced annually in an
economy
-GDP per capita - -Gross domestic product divided by the number of people in the
population, represents average national income
-Capital (K) - -manufactured goods owned by firms to produce other goods and services
-Investment (I) - -spending on capital equipment, inventories, and structures, including
household purchases of new housing
-Intermediate Goods - -products that are purchased for resale or further processing or
manufacturing
-Final Goods - -goods and services that have been purchased for final use and not for
resale or further processing or manufacturing
-GDP by Production - -the market value of all final goods and services produced
domestically in that year
-GDP by Expenditures - -the total amount of money spent by households and the
government on goods and services in a year
-Consumption (C) - -the purchase of final goods and services by households, excluding
new housing
-Government Expenditures (G) - -Cash spent by a government in one year, G = purchases +
transfers + interest payments
-GDP by Income - -GDP measured by the total income of households and firms in an
economy in a year
-Income - -money received, especially on a regular basis, for work or through investments
the value of income will always equal the market value and the value of dollars spent per
transaction
-Circular Flow - -the pattern in which goods and services and resources flow in the
marketplace
-Market Value - -the amount for which something can be sold on a given market.
-Uses of GDP - -To describe a short-run window of data, often to predict economic
expansion or contraction; show living standards; demonstrate economic growth rates
GDP - -the total market value of all final goods and services produced annually in an
economy
-GDP per capita - -Gross domestic product divided by the number of people in the
population, represents average national income
-Capital (K) - -manufactured goods owned by firms to produce other goods and services
-Investment (I) - -spending on capital equipment, inventories, and structures, including
household purchases of new housing
-Intermediate Goods - -products that are purchased for resale or further processing or
manufacturing
-Final Goods - -goods and services that have been purchased for final use and not for
resale or further processing or manufacturing
-GDP by Production - -the market value of all final goods and services produced
domestically in that year
-GDP by Expenditures - -the total amount of money spent by households and the
government on goods and services in a year
-Consumption (C) - -the purchase of final goods and services by households, excluding
new housing
-Government Expenditures (G) - -Cash spent by a government in one year, G = purchases +
transfers + interest payments
-GDP by Income - -GDP measured by the total income of households and firms in an
economy in a year
-Income - -money received, especially on a regular basis, for work or through investments
the value of income will always equal the market value and the value of dollars spent per
transaction
-Circular Flow - -the pattern in which goods and services and resources flow in the
marketplace
-Market Value - -the amount for which something can be sold on a given market.
-Uses of GDP - -To describe a short-run window of data, often to predict economic
expansion or contraction; show living standards; demonstrate economic growth rates
