#1
Which of the following is included in the calculation of Gross Domestic Product (GDP)?
Income from exports
Transfer payments
Unpaid household work
Sales of used goods
#2
What does GDP per capita represent?
Total GDP divided by the number of households
Total GDP divided by the total population
Total GDP divided by the number of employed individuals
Total GDP divided by the number of unemployed individuals
#3
In the GDP formula, which of the following represents the value of all final goods and services produced within a country's borders?
C (Consumption)
I (Investment)
G (Government Spending)
X (Exports) - M (Imports)
#4
Which of the following is considered an investment in the context of GDP calculation?
Buying stocks and bonds
Purchasing a new house
Spending on education
Buying groceries
#5
Which component of GDP includes government expenditures on goods and services?
Consumption
Investment
Government spending
Net exports
#6
Which of the following is included in the calculation of GDP by the expenditure approach?
Interest earned on savings accounts
Government transfer payments
Sales of intermediate goods
Exports of goods and services
#7
Which of the following is not a component of GDP?
Government spending
Net exports
Business investment
Total savings
#8
How does GDP differ from GNP (Gross National Product)?
GDP includes foreign income earned domestically, while GNP includes domestic income earned abroad.
GDP includes only domestic income, while GNP includes income from foreign and domestic sources.
GDP accounts for income earned within a country's borders, while GNP accounts for income earned by a country's residents regardless of location.
GDP is a more accurate measure of economic output compared to GNP.
#9
Which approach is used to calculate GDP by adding up all expenditures in the economy?
Income approach
Production approach
Expenditure approach
Value-added approach
#10
Which of the following is an example of a non-market transaction that would not be counted in GDP?
Buying groceries from a supermarket
Selling homemade goods at a local market
Mowing your neighbor's lawn for free
Paying for a haircut at a salon
#11
Which of the following is not a limitation of using GDP as a measure of economic well-being?
It doesn't account for income distribution.
It doesn't consider the informal economy.
It doesn't reflect environmental sustainability.
It doesn't provide information about the country's trade balance.
#12
What is the difference between nominal GDP and real GDP?
Nominal GDP includes inflation, while real GDP is adjusted for inflation.
Nominal GDP is adjusted for inflation, while real GDP includes inflation.
Nominal GDP is measured in current prices, while real GDP is measured in constant prices.
Nominal GDP is measured in constant prices, while real GDP is measured in current prices.
#13
What does it indicate if a country's GDP has a high rate of growth?
The country's standard of living is likely decreasing.
The country's economy is in recession.
The country's economy is expanding and producing more goods and services.
The country's inflation rate is decreasing.
#14
If a country's nominal GDP increased by 5% and its inflation rate was 3%, what was the real GDP growth rate?
#15
How does depreciation of capital affect GDP?
It increases GDP.
It decreases GDP.
It has no effect on GDP.
It only affects real GDP.
#16
Which of the following accurately describes GDP deflator?
It measures changes in the price level of all goods and services included in GDP.
It measures changes in the price level of imported goods only.
It measures changes in the price level of all goods and services consumed by households.
It measures changes in the price level of all final goods and services produced domestically.
#17
What does GDP not directly measure?
Standard of living
Economic growth
Income distribution
Productivity