#1
Which of the following is included in the calculation of Gross Domestic Product (GDP)?
Government spending
ExplanationGovernment spending contributes to GDP.
#2
What does GDP stand for?
Gross Domestic Product
ExplanationGDP stands for Gross Domestic Product.
#3
What does GDP per capita measure?
The average income earned per person in a country
ExplanationGDP per capita measures average income per person.
#4
Which of the following is not a component of GDP?
Household savings
ExplanationHousehold savings aren't included in GDP.
#5
Which of the following is an example of government spending included in GDP calculations?
Welfare payments
ExplanationWelfare payments are considered government spending in GDP.
#6
What is the primary purpose of calculating GDP?
To measure the size of a country's economy
ExplanationGDP measures the size of a country's economy.
#7
Which of the following represents the formula for calculating GDP?
Consumption + Investment + Government Spending + Exports - Imports
ExplanationGDP is calculated as Consumption + Investment + Government Spending + Exports - Imports.
#8
What is the difference between Nominal GDP and Real GDP?
Nominal GDP is not adjusted for inflation, while Real GDP is.
ExplanationNominal GDP isn't adjusted for inflation; Real GDP is adjusted.
#9
In GDP calculation, what does 'Net Exports' refer to?
The difference between exports and imports
Explanation'Net Exports' refers to exports minus imports.
#10
How does GDP measure the standard of living in a country?
By considering the average income of the population
ExplanationGDP measures standard of living by average income.
#11
Which of the following is an example of an intermediate good?
Steel used in the construction of a building
ExplanationIntermediate goods, like steel for construction, are not counted directly in GDP.
#12
What is the difference between GDP and GNP?
GDP measures the value of final goods and services produced within a country, while GNP measures the value produced by a country's citizens, regardless of location.
ExplanationGDP measures value produced within a country; GNP measures value produced by a country's citizens.
#13
Which of the following is considered an investment in GDP calculations?
Purchasing a new house
ExplanationBuying a new house is considered an investment in GDP.
#14
What does the GDP deflator measure?
Changes in the prices of all goods and services produced
ExplanationGDP deflator measures price changes of all goods and services produced.
#15
Which of the following is a limitation of GDP as a measure of economic well-being?
All of the above
ExplanationGDP has limitations including not considering non-market transactions, environmental degradation, and income inequality.
#16
What does the term 'PPP-adjusted GDP' refer to?
GDP adjusted for changes in purchasing power
ExplanationPPP-adjusted GDP considers changes in purchasing power.
#17
Which of the following is a limitation of using GDP as a measure of economic welfare?
It doesn't account for income inequality
ExplanationGDP doesn't consider income inequality as a measure of welfare.