Gross domestic product (GDP) measures:

I. The total income earned by the factors of production in an economy

II. The total expenditures on goods and services produced in an economy

III. The total value of all assets owned in an economy

a. I only

b. II only

c. III only

d. I and II

e. I, II, and III

In the United States, gross domestic product (GDP):

I. Includes only final goods and services

II. Includes only goods and services produced by U.S. companies

III. Measures the market value of output

IV. Only includes output produced within the United States

a. I, II, III, and IV

b. I, III, and IV only

c. I and II only

d. III and IV only

Which of the following activities would be included in the calculation of U.S. gross domestic product in 2004?

a. An automobile dealer sells a Toyota Prius on Jan. 19, 2005. The car was built at a manufacturing facility in Kentucky on Oct. 3, 2004.

b. A farmer harvests two tons (4,000 pounds) of potatoes on June 5, 2004, and sells the potatoes to McDonald's for 30 cents per pound.

c. An accountant starts a client's 2004 tax return on April 14, 2005, finishing it just before midnight on April 15, 2005.

d. The Jones family buys an antique silver service at an auction on March 21, 2004.

Which of the following is considered an increase in investment in the calculation of GDP?

I. Pepsi-Cola builds a new bottling plant in San Diego, CA.

II. The Crawford family builds a new home outside of Boston, MA.

III. Harley-Davidson increases its inventory of motorcycles.

IV. Jackie Smith purchases 150 shares of Microsoft stock.

a. I, II, III, and IV

b. II and IV only

c. I and II only

d. I, II, and III only