Make sure you show all your work for the problems requiring calculations. Otherwise, you will not receive credit for the question. 1. Define: a. Gross Domestic Product. b. Potential GDP. 2. a. What is the difference between final goods and intermediate goods? Give an example of each. b. Why are intermediate goods excluded from GDP? 3. List and explain the five components of GDP (break out net exports into its components) using the expenditure approach. Give an example of each. 4. What are transfer payments? Why are transfer payments not included in the computation of GDP? 5. What country would count the value of the production in their GDP? a. Thailand produces rice that is purchased in China? b. Smithfield Foods, a company owned by Hong Kong group, WP, produces ham in Virginia and purchased in South Carolina? c. The U.S. produces wheat that is purchased by Mexico. 6. Define: a. Nominal GDP b. Real GDP c. If we want to compare actual production from year to year, will we use nominal or real GDP? 7. Find following the data for Sueppelvania's economy: Item Value Personal Consumption Expenditure $70,000 Gross private domestic investment $9,000 Depreciation $1,000 Exports of goods and