#1
Which of the following is NOT a component of GDP?
Consumption
Investment
Imports
Exports
#2
What does GDP stand for?
Gross Domestic Price
Global Domestic Product
Gross Domestic Profit
Gross Domestic Product
#3
Which of the following is true about nominal GDP?
It is adjusted for inflation
It reflects current prices
It is adjusted for changes in population
It reflects constant prices
#4
Which of the following is NOT considered in GDP calculation?
Government spending
Investment in stocks
Consumer spending
Net exports
#5
What does the acronym GDP per capita represent?
Total GDP
Average GDP
GDP divided by population
GDP multiplied by population
#6
Which of the following is an example of a government transfer payment?
Salary paid to government employees
Welfare benefits
Social Security taxes
Corporate income taxes
#7
Which of the following is included in the calculation of GDP?
Social Security payments
Transfer payments
Government purchases of goods and services
Unemployment benefits
#8
Which approach is used to calculate GDP by summing up all expenditures on final goods and services?
Production approach
Income approach
Expenditure approach
Value-added approach
#9
Which of the following is a limitation of GDP as a measure of economic well-being?
It does not account for inflation
It includes non-market transactions
It excludes government spending
It doesn't account for income distribution
#10
What is the primary reason for including only final goods and services in GDP calculation?
To avoid double counting
To simplify calculations
To reduce the size of GDP
To exclude imports
#11
Which of the following is an example of an intermediate good?
Bread sold at a bakery
A car sold to a consumer
Flour purchased by a bakery to make bread
A computer purchased for personal use
#12
What is the main difference between real GDP and nominal GDP?
Real GDP includes inflation, while nominal GDP does not
Nominal GDP includes inflation, while real GDP does not
Real GDP is adjusted for changes in population, while nominal GDP is not
Nominal GDP is adjusted for changes in population, while real GDP is not
#13
In the expenditure approach to calculating GDP, which component typically contributes the most to GDP?
Consumption
Investment
Government spending
Net exports
#14
What is the formula to calculate GDP using the expenditure approach?
GDP = C + I + G + NX
GDP = C + I + X - M
GDP = C + I + G + M - X
GDP = C + I + G - X + M
#15
Which of the following would NOT be included in the calculation of GDP?
Purchase of a new house
Purchase of used furniture
Payment for legal services
Sale of government bonds
#16
What is the formula to calculate GDP using the production approach?
GDP = Compensation of employees + Gross operating surplus + Taxes less subsidies on production and imports
GDP = Consumption + Investment + Government spending + Net exports
GDP = Value added by firms + Compensation of employees + Indirect taxes - Subsidies
GDP = Gross domestic income - Taxes on production and imports + Subsidies
#17
What is the main reason GDP is criticized as a measure of economic welfare?
It fails to account for income distribution
It is too complex to calculate accurately
It ignores changes in population
It does not account for changes in consumer preferences
#18
What is the significance of using constant prices in calculating real GDP?
To account for changes in population
To account for changes in inflation
To account for changes in government spending
To account for changes in exchange rates