Macroeconomics Performance

Gross domestic product after adjustments for inflation is ________.

real GDP

capital GDP

NI

PI

An underground economy is best described as:

Unreported illegal activities that do show up on GDP.

Reported illegal activities that do not show up on GDP.

Unreported legal and illegal activities that do not show upon GDP.

A combination of reported legal and unreported illegal activities that show up on GDP.

Sales of used goods not reported in GDP are ________.

secondhand sales

nonmarket transaction

intermediate products

None of the above

If you want to compare two economies with different population, you should use ________.

GDP per capita

real GDP

capital GDP

current GDP

_________ developed the poverty threshold.

Social Security Administration

IRS

GDP

GDP per capita

Income gaps rarely occur in developing nations.

True

False

Credit and cash payment to low-income workers is ________.

subsidized medical care

Medicaid

food stamps

EITC

Why is it important to express GDP and GNP in a per capita basis?

Population is always decreasing worldwide.

Population stays the same.

It is not the most accurate measurement of the economy.

None of the above

All of following affect income inequality EXCEPT:

Education

Tax law changes

Discrimination

All of these affect income inequality.

In the United States, GDP measures only the output of 25 states.

True

False