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5 Cards in this Set

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Economics

social science concerned w/ how individuals, institutions, & society makes optimal (best) choices under conditions of scarcity

Utility

pleasure, happiness, or satisfaction obtained from consuming a good or service

Which of the following statements is true?


a. National Income Accounting measures the economy's overall performance (the health of the economy)


b. The Bureau of Economic Analysis (BEA) an agency of the Department of Commerce, compiles data & reports it in the National Income & Product Accounts (NIPA)


c. The primary measure of the economy's performance as a whole is its aggregate output (total output).

All of the above


Which of the following statements is true?


a. Aggregate output is typically calculated using Gross Domestic Product (GDP)


b. To avoid multiple counting of goods GDP includes both market value of final and intermediate goods.


c. Intermediate goods are those that are either purchased for resale or for futher processing into other goods.

Only a and c

Which of the following statements is true?


a. GDP could also avoid multiple counting by taking into account only the vamue added by all firms in the economy at each stage of the production process.


b. Value added us the market value of a firm's output less than the value of the intermediate goods that the firm purchased from others.


c. Non production transactions must be included in the GDP since they have a lot to do with the production of finaal good and services.

Only a and b