16) Gross domestic product is the total market value of all

intermediate goods produced in the United States by labor and property.

final goods and services produced in the United States by labor and property.

final goods and services sold in the United States.

final and intermediate goods and services produced in the United States by labor and property.

17) Which statement about environmental quality and economic activity is TRUE?

Developing countries generally prefer to keep their environments pristine, even at the cost of such necessities as food and health care.

No measure of economic progress incorporates environmental quality.

Wealthier countries tend to value environmental quality more than developing countries do.

As countries develop, they spend less on resources to improve environmental quality.

18) Business cycles are alternating increases and decreases in macroeconomic activity.

False

True

20) A recession is always followed by a depression.

False

True

23) If a business increases its inventories, the change is treated as an investment.

True

False