1.GDP is defined as

a. the market value of all goods and services produced within a country in a given period of time.

b. the market value of all goods and services produced by the citizens of a country, regardless of where they are living in a given period of time.

c.the market value of all final goods and services produced within a country in a given period of time.

d . the market value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.

2.Ralph pays a lawn mowing company to mow his lawn, while Mike mows his own lawn. Regarding these two practices, which of the following statements is correct?

a. Only Ralph's payments are included in GDP.

b. Ralph's payments as well as the estimated value of Mike's mowing services are included in GDP.

c. Neither Ralph's payments nor the estimated value of Mike's mowing services is included in GDP.

d. Ralph's payments are definitely included in GDP, while the estimated value of Mike's mowing services is included in GDP only if Mike voluntarily provides his estimate of that value to the government.

3.A steel company sells some steel to a bicycle company for $100. The bicycle company uses the steel to produce a bicycle, which it sells for $200. Taken together, these two transactions contribute

a. $100 to GDP.

b. $200 to GDP.

c. between $200 and $300 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle.

d. $300 to GDP.

4.An American company operates a fast food restaurant in Romania. Which of the following statements is accurate?

a. The value of the goods and services produced by the restaurant is included in both Romanian GDP and U.S. GDP.

b.One-half of the value of the goods and services produced by the restaurant is included in Romanian GDP, and the other one-half of the value is included in U.S. GDP.

c.The value of the goods and services produced by the restaurant is included in Romanian GDP, but not in U.S. GDP.

d. The value of the goods and services produced by the restaurant is included in U.S. GDP, but not in Romanian GDP.

5.GDP does not reflect

a. the value of leisure.

b. the value of goods and services produced at home.

c. the quality of the environment.

d. All of the above are correct.