1. What is meant by the "gross domestic product" or GDP?

2. What is the difference between "final goods" and "intermediate goods"?

3. What is the difference between the GDP and the "gross national product" or GNP?

4. Summarize the expenditure approach to the measurement of GDP.
Precisely what is included in:
a. consumption?
b. investment?
c. government purchases?
d. net exports?

5. Summarize the income approach to the measurement of GDP.
What are the main components of the income measure of the GDP?

6. You are not responsible for the section "From GDP to Disposable Personal Income."

7. What is meant by "nominal GDP"? Why is the nominal GDP not a good measure of the quantity of output produced?

8. What is meant by "real GDP"?
Summarize the following with respect to the calculation of the real GDP:
a. what a "weight" is and how weights are used in the calculation of the real GDP.
b. the old procedure of calculating the real GDP using fixed weights and a single base year.
c. the problems with this old procedure of calculating the real GDP.
d. the new procedure of calculating the real GDP using multiple base years and chain weights.

9. How is the GDP price index constructed?

10. What are some limitations of the concept of GDP?

11. What is meant by the "per capita" GDP or GNP?
Compare the per capita GNP in different countries in Table 7.7.

12. Recommended problems (at the end of the chapter): 1 - 9
Answers to even-numbered problems are in the back of the book.