Economic Growth and GDP Analysis Quiz

Test your knowledge with questions on GDP, economic growth, inflation, and more. Explore macroeconomic concepts in this comprehensive quiz.

Practice Learn Test

Which of the following is a measure of economic growth?

GDP per capita

Consumer Price Index (CPI)

Unemployment rate

Trade balance

What does GDP stand for?

Gross Domestic Product

Growth and Development Plan

General Development Policy

Global Demand Projection

Which of the following is NOT a component of GDP?

Government spending

Consumer spending

Investment

Imports

What is the formula for calculating GDP?

GDP = Consumption + Investment + Government spending + (Exports - Imports)

GDP = Consumption + Investment + Government spending + Exports + Imports

GDP = Consumption + Investment - Government spending + (Exports - Imports)

GDP = Consumption + Investment + Government spending - (Exports + Imports)

Which of the following is a limitation of using GDP as a measure of economic welfare?

It does not account for income distribution.

It includes only market transactions.

It accurately reflects environmental sustainability.

It is not influenced by government policies.

What is the relationship between GDP growth rate and unemployment rate?

Higher GDP growth leads to higher unemployment rate.

Higher GDP growth leads to lower unemployment rate.

There is no relationship between GDP growth and unemployment rate.

GDP growth rate and unemployment rate move in opposite directions.

Which of the following is an example of an intermediate good?

A loaf of bread purchased by a consumer

Steel purchased by a car manufacturer

A car purchased by a family

A television purchased by a household

Which of the following best defines economic growth?

An increase in the size of the labor force

An increase in the production of goods and services over time

A decrease in the inflation rate

An increase in the value of a country's currency

What is the difference between nominal GDP and real GDP?

Nominal GDP is adjusted for inflation, while real GDP is not.

Nominal GDP measures current market values, while real GDP measures constant market values.

Nominal GDP is used for international comparisons, while real GDP is used for domestic comparisons.

Nominal GDP includes only final goods, while real GDP includes intermediate goods.

#10

Which of the following is NOT a factor contributing to economic growth?

Technological progress

Increase in government regulations

Investment in human capital

Improvements in infrastructure

#11

What does the GDP deflator measure?

The overall level of prices in the economy

The difference between nominal GDP and real GDP

The rate at which the GDP is growing

The level of inflation in the economy

#12

Which of the following is an example of capital formation?

A household purchases a new car

A company buys new machinery for production

A government increases spending on healthcare

A consumer buys groceries for daily use