ECN 211 ch 5 quiz – Flashcards
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Based on the circular flow model, goods and services flow from:
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businesses to households in product markets.
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If net exports are a negative number, then:
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we are exporting less than we are importing.
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The circular flow of economic activity is a model of the:
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flow of goods, resources, payments, and expenditures between the sectors of the economy.
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Gross domestic product that is based on existing prices is called:
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current GDP, money GDP, nominal GDP
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Which of the following activities would be calculated as part of GDP accounts?
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Purchasing plastic surgery.
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The expenditure approach for the calculation of GDP includes spending on:
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consumption, gross private domestic investment, government spending for goods and services, and net exports.
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Which one of the following would count as investment in the GDP accounts?
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Purchase of a new airplane by an airline.
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The largest component of household consumption spending is expenditures on:
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services
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Payments to households not in exchange for goods and services currently produced are:
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transfer payments.
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Gross private domestic investment does not include:
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spending on employee salaries.
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If you buy a commemorative Princess Diana stamp issued by the British government, the purchase is considered part of:
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M.
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In recent years, people have benefited from greater amounts of leisure time. This trend:
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is not accounted for in GDP.
