1. Which of the following is an intermediate good

• The purchase of a computer by an accountant for use in his accounting firm.
• The purchase of a computer by a college student for use in studying
• The purchase of tires by an individual for a car.
• The unreported baby sitting services of a teenager.

2. Capital, as economists use the term, refers to:

• The money needed to start a new business.
• The costs of operating a business.
• Shares of stock issued by businesses.
• Final goods that are used to produce other goods and services.

3. In calculating GDP:

• Imports are subtracted from exports because they are part of another country's GDP.
• Imports are added to exports because both represent purchases of final goods.
• Imports are subtracted from exports to obtain gross exports.
• Imports are subtracted from exports and included in consumption.

4. The GDP per capita:

• Measures a country's productivity.
• Permits comparisons of the economic welfare of different nations.
• Is nominal GDP corrected for price-level changes.
• Indicates the distribution of output.

5. An increase in real GDP is known as:

• Labour force expansion.
• Institutional growth.
• Economic growth.
• Production constraint.