Worksheet for Economics
Fill in the Blanks
· What are the Two views of GDP are ____________ and ______________ approach.
· How do you measure the countries income, through the _______________
· The ___________market and the __________ market are apart of the circular flow.
· Name 3 Income components of GDP.
· Profits kept by businesses for new investment is known as _________ ________.
Multiple Choice
1. Which of the following is not a part of the Expenditure Approach?
A) Personal Consumption B) Gross Investment
C) Government Purchases D) Interest Income
2. What is the equation for expenditure?
A) Personal Consumption B) Government
C) Gross Investment D) All Of The Above
3. Which of these is not an income component of the GDP?
A) Financial Exchanges B) Corporate Profits
C) Statistical Discrepancy D) Depreciation
Matching
Column A Column B
· Capital Stock The decrease in value of durable
real assets over time
· Depreciation The total value of productive assets that
provide a flow of revenue
· Expenditure GDP calculated as total income
Approach
· GDP All of the spending in the economy
What are the 7 categories used to calculate GDP using the income approach?
1.
2.
3.
4.
5.
6.
7.
Key Terms
capital stock: the total value of productive assets that provide a flow of revenue
depreciation: the decrease in value of durable real assets over time
double-counting: the problem of adding to GDP the same item at different stages in its production
durable goods: goods that are consumed repeatedly over time
expenditure approach: a method of calculating Gross Domestic Product by adding together all spending in the economy
GDP identity: Gross Domestic Product calculated as total income is identical to Gross Domestic Product calculated as total spending
Gross Domestic Product: the total dollar value at current prices of all final goods and services produced in Canada over a given period
gross investment: purchases of assets that are intended to produce revenue
Gross National Product: the total income acquired by Canadians both within Canada and elsewhere
income approach: a method of calculating Gross Domestic Product by adding together all incomes in the economy
intermediate products: products that will be processed further or will be resold
national income accounts: accounts showing the levels of total income and spending in the Canadian economy
net investment: gross investment minus depreciation
nondurable goods: goods that are consumed just once
nonmarket activities: productive activities that take place outside the marketplace
real GDP: GDP expressed in constant dollars from a given year
retained earnings: profits kept by businesses for new investment
transfer payments: government payments to households or other levels of government
underground economy: all the market transactions that go unreported
value added: the extra worth of a product at each stage in its production; a concept used to avoid double-counting in calculating GDP