8. Gross domestic product constitutes the a total quantitative output in an econ

Question

8. Gross domestic product constitutes the a total quantitative output in an economy b. current market value of all goods and services peoduced in a given year c. total spending in an cconomy. d. total moeetary transactions in an economy e current market value of all final goods and services prodaced in a given year within a country's borders Which of the following economic activities is not be counted as part of GDP? a. A student working part-time b. A housewife selling cherry pies in the coner store c. A gang member selling ilegal drags d. The govermment buying computers for public schools c. None Dall of these are counted in GDP 10. Productive activity in the underground economy a results in an overstatement of actual income and production in the national accounting system b. consists of unrecorded cash transactices c. is fully estimated and includod in the national income accounting system d poses no problems for the measurement of gross domestic geoduct e. does not ffect GDP, but it is included in the value-addeod computations 11 IfGDP included intermediate goods and services, then a GDP would be understated. b. we would obtain a more realistic GDP value e we would be undercounting. d. we would be double counting. e. final poods and services would have to be subtracted to oblain the true GDP value. 12. The stock of unsold goods held by a firm is called a capital stock b. inventory c neservoir d. backup. 13. Changes in inventory are applied by economists to measure changes in business capital. b. the total value of goods produced and sold in a year c the total value of sold prodacts d. changes in planned investment. e. the total value of goods produced but not sold in a year 14 GDP can be calculated as a output c incone d. output and income only

Explanation / Answer

First question is answered below

1. Correct option: (e)

Reason: GDP refers to the total market value of all goods and services produced in an economy in a given fiscal year within the country's borders computed at current market prices.

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