#1
What does GDP stand for?
Gross Domestic Product
ExplanationMeasure of a country's economic performance.
#2
Which of the following is NOT a component of GDP?
Imports
ExplanationGoods and services brought into the country.
#3
How is GDP calculated using the production approach?
GDP = Total Output - Intermediate Consumption
ExplanationValue of goods and services produced.
#4
What is the difference between nominal GDP and real GDP?
Nominal GDP includes inflation, while real GDP does not.
ExplanationAdjustment for inflation.
#5
Which of the following is an example of an intermediate good in GDP calculation?
Steel used in the production of a car
ExplanationGoods used in production process.
#6
What does the GDP deflator measure?
The overall level of prices in the economy
ExplanationIndicator of inflation.
#7
Which of the following is an example of a transfer payment and is not included in GDP?
Unemployment benefits
ExplanationPayment without goods or services exchanged.
#8
In the expenditure approach to GDP, what does the formula GDP = C + I + G + (X - M) represent?
Total spending in the economy
ExplanationAggregate demand.
#9
Which of the following is included in the category of government spending in GDP calculation?
Social Security payments
ExplanationExpenditures by government.
#10
What is the income approach to calculating GDP?
GDP = Compensation of employees + Gross profits + Taxes on production and imports - Subsidies
ExplanationMeasure of total income generated.
#11
According to the expenditure approach, what does the term 'Net Exports' represent?
Total exports minus total imports
ExplanationBalance of trade.
#12
What is the formula for calculating GDP using the income approach?
GDP = Compensation of employees + Gross profits + Taxes on production and imports - Subsidies
ExplanationMeasurement of total income.