1.

(02.02 HC) This table represents the value for each transaction type listed for one country in one year. Use the data table to answer the question that follows.

Transaction Type	Total ($)
Imports	1 billion
Exports	2 billion
Household consumption	2.2 billion
Total value of all garage sale transactions	0.4 billion
Government spending on infrastructure, military, and other services	0.4 billion
Government spending on national debt and transfer payments	0.6 billion
Business investments	1.6 billion
Estimated value of labor for non-profit organizations	0.5 billion

What is the GDP of the country above? (5 points)

	$4.2 billion
	$4.4 billion
	$5.2 billion
	$5.4 billion
	$8.7 billion

2.

(02.02 LC) Which of the following is a controversial indicator because while it attempts to measure total economic activity, it excludes certain data for being too difficult to count? (5 points)

	Total consumption
	Net exports
	Gross domestic product
	Unemployment rate
	Production possibilities curve

3.

(02.02 LC) Why would the money disbursed for Social Security disability benefits not be counted as part of GDP? (5 points)

	It is impossible to know the precise number.
	It is not directly involved in the production of new goods and services.
	It has previously circulated through the economy.
	It is considered part of the shadow economy.
	It is counted as part of GDP.

4.

(02.02 MC) A country with a significant shadow economy has a GDP of $1.5 billion. It is estimated that 50,000 illegal gambling transactions occurred, with an average value of $20. If these transactions were added to the GDP, what would be the increase? (5 points)

	$1 million
	$1 billion
	$1.6 billion
	$1.7 billion
	$3 billion

5.

(02.02 MC) Which of the following is considered in the calculation of gross domestic product? (5 points)

	The distribution of wealth across the population
	The labor of an author on a book to be published the next year
	The total value of all consumer investments in financial markets
	Environmental costs
	The value of all new residential home construction