Macroeconomic Indicators and National Income Accounting Quiz

Test your knowledge on GDP, GNP, inflation, & more with this macroeconomics quiz. Perfect for students & enthusiasts alike!

Practice Learn Test

Which of the following is not a component of Gross Domestic Product (GDP)?

Consumption

Investment

Imports

Exports

Which of the following is not a measure of national income?

GDP

GNP

CPI

What does GDP stand for?

Gross Domestic Population

Gross Domestic Product

Global Domestic Product

Growth and Development Potential

Which of the following is included in the calculation of GDP?

Government spending

Social Security payments

Unemployment benefits

Transfer payments

What is the formula for calculating Net National Product (NNP)?

GDP + Net Foreign Factor Income - Depreciation

GDP - Depreciation

GDP - Net Foreign Factor Income + Depreciation

GDP + Depreciation

What does the term 'Real GDP' refer to?

GDP adjusted for inflation

GDP adjusted for population growth

GDP measured in constant prices

GDP measured in current prices

Which of the following is an indicator of economic growth?

Unemployment rate

Inflation rate

Gross Domestic Product (GDP)

Income inequality

Which of the following is subtracted from Gross Domestic Product (GDP) to obtain Net Domestic Product (NDP)?

Depreciation

Government spending

Investment

Exports

What is the formula to calculate Gross National Product (GNP)?

GDP + Net Foreign Factor Income

GDP - Net Foreign Factor Income

GDP + Net Foreign Factor Income - Depreciation

GDP - Net Foreign Factor Income + Depreciation

#10

Which of the following represents a flaw in using Gross Domestic Product (GDP) as a measure of economic welfare?

It accounts for income inequality

It includes only market transactions

It excludes government spending

It excludes household production and volunteer work

#11

What is the primary 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 government spending, while real GDP does not.

Real GDP includes the underground economy, while nominal GDP does not.

#12

Which of the following is a limitation of using Gross Domestic Product (GDP) as a measure of economic well-being?

It does not account for the distribution of income.

It includes the value of intermediate goods.

It does not account for depreciation of capital.

It is not affected by changes in the price level.

#13

What is the significance of the GDP deflator?

It measures the percentage change in nominal GDP over time.

It measures the price level of all new, domestically-produced, final goods and services in an economy.

It is used to adjust nominal GDP for changes in the price level.

It is used to calculate the unemployment rate in an economy.

#14

What is the difference between GNP and GDP?

GNP includes foreign income earned by residents, while GDP does not.

GDP includes foreign income earned by residents, while GNP does not.

GNP includes government spending, while GDP does not.

GDP includes government spending, while GNP does not.