1. The difference between the price the firm sells a good for and the price it paid other firms for intermediate goods is called __________

A. producer surplus

B. fixed investment

C. value added

D. profit

2. The annual charge that estimates the amount of capital equipment used up in each year’s production is called

A. noninvestment transaction

B. inventory reduction

C. depreciation

D. investment

3. Which of the following goods and services would be excluded from personal consumption expenditures in the Bureau of Economic Analysis?

A. Medical care

B. Education

C. A haircut

D. Transportation

E. A new house

4. Which of the following is counted in the gross private domestic category used by the Bureau of Economic Analysis when measuring GDP?

A. Business fixed Investment

B. Residential Investment

C. Changes in business inventories

D. All of the above

5. Which of the following is included in the economist’s definition of investment?

A. the purchase of a machine, factory, or house

B. the purchase of a share stock

C. the purchase of a rare coin or deposit in a savings account

D. All of the above E. none of the above

6. Which measure of GDP represents changes in the quantity of goods and services produced in the economy, holding prices constant?

A. nominal GDP

B. real GDP

C. net national product

D. none of the above

E. all GDP measures represent changes in both prices and quantities