Macroeconomics ECN211 Midterm Review Exam 2026|2027 Questions
with Detailed Verified Answers (100% Correct Answers) | Already
Graded A+
Gross domestic product is best defined as:
A. the total quantity of goods and services produced in a country during a period of time.
B. the total value of all goods that can be found in a country.
C. the market value of all final goods and services produced in a country during a period of time.
D. the amount of all incomes earned by all citizens of a country, including those living overseas. -
Answer -C. the market value of all final goods and services produced in a country during a
period of time.
Which is the largest component of GDP?
A. consumption
B. investment
C. government purchases
D. exports - Answer -A. consumption
Which of the following are not part of "final goods," as used in the definition of GDP?
A. consumption goods
B. investment goods
C. exports
D. intermediate goods - Answer -D. intermediate goods
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, Which of the following is not true of GDP?
A. GDP is measured by adding up the market values of goods produced, not the quantities of
goods produced.
B. GDP includes both intermediate and final goods.
C. GDP includes only current production.
D. GDP is calculated by the Bureau of Economic Analysis (BEA) - Answer -B. GDP includes both
intermediate and final goods
When a consumer purchases a new computer, how is that purchase counted in GDP?
A. by adding the value of the various components of the computer to the final price paid for the
computer by the consumer.
B. by subtracting the value of the components from the price paid by the consumer.
C. by counting only the value of the computer and ignoring the value of the components.
D. None of the above. The production and sale of the computer would not be counted in GDP. -
Answer -C. by counting only the value of the computer and ignoring the value of the
components.
Which of the following is counted in this year's GDP?
A. only this year's production of goods and services.
B. only goods that are both produced and sold within the United States.
C. new goods produced and sold this year plus the value of used goods resold this year.
D. this year's production of goods and services added to the value of GDP last year. - Answer -A.
only this year's production of goods and services.
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with Detailed Verified Answers (100% Correct Answers) | Already
Graded A+
Gross domestic product is best defined as:
A. the total quantity of goods and services produced in a country during a period of time.
B. the total value of all goods that can be found in a country.
C. the market value of all final goods and services produced in a country during a period of time.
D. the amount of all incomes earned by all citizens of a country, including those living overseas. -
Answer -C. the market value of all final goods and services produced in a country during a
period of time.
Which is the largest component of GDP?
A. consumption
B. investment
C. government purchases
D. exports - Answer -A. consumption
Which of the following are not part of "final goods," as used in the definition of GDP?
A. consumption goods
B. investment goods
C. exports
D. intermediate goods - Answer -D. intermediate goods
1|Page
, Which of the following is not true of GDP?
A. GDP is measured by adding up the market values of goods produced, not the quantities of
goods produced.
B. GDP includes both intermediate and final goods.
C. GDP includes only current production.
D. GDP is calculated by the Bureau of Economic Analysis (BEA) - Answer -B. GDP includes both
intermediate and final goods
When a consumer purchases a new computer, how is that purchase counted in GDP?
A. by adding the value of the various components of the computer to the final price paid for the
computer by the consumer.
B. by subtracting the value of the components from the price paid by the consumer.
C. by counting only the value of the computer and ignoring the value of the components.
D. None of the above. The production and sale of the computer would not be counted in GDP. -
Answer -C. by counting only the value of the computer and ignoring the value of the
components.
Which of the following is counted in this year's GDP?
A. only this year's production of goods and services.
B. only goods that are both produced and sold within the United States.
C. new goods produced and sold this year plus the value of used goods resold this year.
D. this year's production of goods and services added to the value of GDP last year. - Answer -A.
only this year's production of goods and services.
2|Page
