1. By definition, gross domestic product (GDP) measures ____.

A) the total spending of everyone in the economy.

B) the value of all output in the economy.

C) the total income of everyone in the economy.

D) all of the above.

2. Which of the following is an example of a final good or service ____?

A) wheat a bakery purchases to make bread.

B) a GPS purchased by UPS to track shipments.

C) lumber purchased by a construction company for building houses.

D) coffee beans Starbucks purchases to make coffee.

3. Which of the following value would be counted as a part of 2022's GDP ____?

A) the market value of a pharmaceutical stock you bought in 2022.

B) the bonus-check your friend got from his car dealership job in 2022.

C) the market value of a HD TV that was produced in 2021 but sold in 2022.

D) the market value of a treasury bills sold by the US federal government in 2022.

4. Which of the following is an example of an intermediate good ____?

A) the pizza sauce Pizza Hut purchase to make pizzas to sell.

B) the dough you buy to fix yourself a pizza for dinner.

C) the chocolate you buy to make yourself some cookies.

D) lumber you buy to build a house for your dog.

5. The Bureau of Economic Analysis (BEA) has used various measurements to feature national output of the United States, for example gross domestic product (GDP) and gross national product (GNP). Which of the following statement about GDP and GNP is NOT correct?

A) GDP and GNP conceptually measure the total market value of all final goods and services produced over a period.

B) GDP estimates the goods and services produced within the country's geographical borders, by both U.S. residents and foreign residents.

C) GNP estimates the goods and services produced by only U.S. residents within the country, not from overseas.

D) GNP measures the goods and services produced by only U.S. residents, both domestically and abroad.