#1
Which of the following is NOT included in the calculation of Gross Domestic Product (GDP)?
Government spending
Investment spending
Exports
Unemployment benefits
#2
Gross Domestic Product (GDP) is defined as the total market value of all:
Goods produced by a country
Goods and services produced by a country
Imports and exports of a country
Services provided within a country
#3
Which of the following is NOT a method used to calculate GDP?
Income approach
Production approach
Consumption approach
Expenditure approach
#4
Which of the following is an example of an intermediate good?
A loaf of bread sold at a bakery
Steel used to manufacture cars
A computer purchased by a consumer
Gasoline purchased by a household
#5
Which of the following is an example of government transfer payments?
Social Security benefits
Wages paid to government employees
Corporate profits
Dividends paid to shareholders
#6
What does the term 'nominal GDP' refer to?
The GDP of a country adjusted for inflation
The GDP of a country measured in current prices without adjusting for inflation
The GDP of a country adjusted for changes in population
The GDP of a country measured in constant prices after adjusting for inflation
#7
Which of the following is an example of a component of GDP?
Interest paid on loans
Corporate profits
Wages paid to workers
All of the above
#8
In the expenditure approach to calculating GDP, which of the following is NOT a component?
Consumption
Government spending
Investment
Imports
#9
Which of the following is a limitation of using GDP as a measure of economic well-being?
It does not account for income distribution within a country.
It does not reflect changes in the environment.
It does not consider population growth.
It does not capture changes in technological advancements.
#10
What is the formula for calculating GDP using the expenditure approach?
GDP = Consumption + Government Spending + Investment + Exports - Imports
GDP = Consumption + Government Spending + Investment + Exports + Imports
GDP = Consumption + Government Spending + Investment - Exports + Imports
GDP = Consumption + Government Spending - Investment + Exports + Imports
#11
Which of the following best describes the underground economy?
It consists of illegal activities such as drug trafficking and smuggling.
It includes legal activities that are not reported to the government for tax purposes.
It refers to economic activities that take place in underground tunnels.
It is a term used to describe the financial sector of an economy.
#12
Which of the following scenarios would lead to an increase in GDP?
A decrease in government spending
A decrease in exports
An increase in personal savings
An increase in consumer spending
#13
What is the difference between nominal GDP and real GDP?
Nominal GDP is adjusted for inflation, while real GDP is not.
Real GDP is adjusted for inflation, while nominal GDP is not.
Nominal GDP includes only goods, while real GDP includes goods and services.
Real GDP includes only final goods, while nominal GDP includes intermediate goods.
#14
If a country's nominal GDP increased by 5% from one year to the next and the inflation rate was 3%, what is the country's real GDP growth rate?
#15
What is the difference between GDP and GNP (Gross National Product)?
GDP includes income earned by foreign residents, while GNP includes income earned by domestic residents.
GDP includes only goods produced within a country, while GNP includes goods and services produced within a country.
GDP measures the total economic output of a country, while GNP measures the total economic output of all countries.
GDP measures the market value of all final goods and services produced within a country, while GNP measures the market value of all goods and services produced by domestic residents.
#16
What is the difference between GDP deflator and Consumer Price Index (CPI)?
GDP deflator measures inflation for all goods and services produced domestically, while CPI measures inflation for a basket of consumer goods and services.
CPI measures inflation for all goods and services produced domestically, while GDP deflator measures inflation for a basket of consumer goods and services.
GDP deflator includes only consumer goods, while CPI includes all goods and services produced domestically.
CPI includes only consumer goods, while GDP deflator includes all goods and services produced domestically.
#17
What is the formula for calculating GDP using the income approach?
GDP = Consumption + Investment + Government Spending + Net Exports
GDP = Compensation of Employees + Gross Operating Surplus + Gross Mixed Income + Taxes on Production and Imports
GDP = Personal Consumption Expenditures + Gross Private Domestic Investment + Government Purchases of Goods and Services + Net Exports
GDP = Consumption + Investment + Government Spending + Exports - Imports