#1
Which of the following is included in the calculation of Gross Domestic Product (GDP)?
Exports
Government transfer payments
Unemployment benefits
Private savings
#2
What does GDP stand for?
Growth and Development Progress
Gross Domestic Product
General Distribution Process
Global Demand Projection
#3
Which of the following is considered an investment in the context of GDP?
Purchasing stocks and bonds
Buying groceries
Paying off credit card debt
Renting an apartment
#4
Which of the following represents the largest component of GDP in most economies?
Investment
Government Spending
Consumption
Net Exports
#5
Which of the following is NOT included in the calculation of GDP?
Government Spending
Household Consumption
Intermediate Goods
Imports
#6
Which of the following is NOT a component of GDP?
Consumption
Investment
Government Spending
Imports
#7
What does the expenditure approach to calculating GDP involve?
Adding up the total value of goods and services produced in the economy
Summing up all the incomes earned by factors of production
Total spending on newly produced goods and services within a country
Summing up the value added at each stage of production
#8
Which of the following is an example of government investment that contributes to GDP?
Welfare payments
Military spending
Unemployment benefits
Social security payments
#9
What does the GDP deflator measure?
The average price level of all final goods and services produced in the economy
The change in the quantity of goods and services produced in the economy
The total value of all goods and services produced in the economy
The change in the overall price level of all goods and services produced in the economy
#10
Which of the following scenarios would result in an increase in GDP?
A decrease in government spending
A decrease in exports
An increase in consumer savings
An increase in business investment
#11
Which of the following represents the formula for calculating GDP using the income approach?
GDP = C + I + G + (X - M)
GDP = Wages + Rent + Interest + Profit
GDP = Total Expenditure - Total Savings
GDP = Government Spending - Imports + Exports
#12
What is the primary function of the production approach to calculating GDP?
To measure the total expenditure on newly produced goods and services within a country
To calculate the value added at each stage of production
To sum up all the incomes earned by factors of production
To determine the average price level of all final goods and services produced in the economy
#13
What is the relationship between real GDP and nominal GDP?
Real GDP is always higher than nominal GDP
Real GDP is always lower than nominal GDP
Real GDP equals nominal GDP when there is no inflation
There is no relationship between real GDP and nominal GDP
#14
What is the formula for calculating GDP using the income approach?
GDP = C + I + G + (X - M)
GDP = Wages + Rent + Interest + Profit
GDP = Total Expenditure - Total Savings
GDP = Government Spending - Imports + Exports
#15
What is the difference between real GDP and nominal GDP?
Real GDP is adjusted for inflation, while nominal GDP is not
Nominal GDP is adjusted for inflation, while real GDP is not
Real GDP is measured in current prices, while nominal GDP is measured in constant prices
Nominal GDP is measured in current prices, while real GDP is measured in constant prices