#1
Which of the following is NOT a component of Gross Domestic Product (GDP)?
Unemployment rate
ExplanationGDP measures economic output, not employment statistics.
#2
Which of the following is included in the calculation of Net Domestic Product (NDP)?
Depreciation
ExplanationNDP accounts for depreciation or the loss of value of capital goods over time.
#3
Which of the following components is included in the calculation of Gross National Product (GNP) but NOT in Gross Domestic Product (GDP)?
Exports
ExplanationGNP includes GDP plus net income earned from foreign investments.
#4
What is the formula for calculating Gross Domestic Product (GDP) using the income approach?
GDP = Wages + Rent + Interest + Profit
ExplanationThis approach sums up all the income earned within an economy.
#5
Which of the following is a component of Aggregate Demand (AD) in macroeconomics?
Government spending
ExplanationAD represents total spending in the economy, including consumption, investment, government spending, and net exports.
#6
Which of the following equations represents the expenditure approach to calculating GDP?
GDP = C + I + G + (X - M)
ExplanationThis equation sums up consumption, investment, government spending, and net exports.
#7
What does the term 'Value Added' refer to in the context of National Income Accounting?
The difference between the value of goods produced and the cost of inputs
ExplanationValue added is the increase in the value of a product or service at each stage of production.
#8
Which of the following is a measure of a nation's total economic output adjusted for inflation or deflation?
Real GDP
ExplanationReal GDP accounts for changes in price levels over time.
#9
What does the term 'Balance of Payments' refer to in economics?
The difference between exports and imports of goods and services
ExplanationIt records a country's economic transactions with the rest of the world.
#10
Which of the following represents the formula for calculating National Savings?
National Savings = GDP - Consumption - Investment
ExplanationNational savings is the portion of GDP not consumed or invested domestically.
#11
What does the abbreviation 'GNI' stand for in National Economic Accounting?
Gross National Income
ExplanationGNI includes GDP plus income earned by residents from abroad minus income earned domestically by non-residents.
#12
Which of the following is NOT a limitation of using GDP as a measure of economic welfare?
It accurately reflects changes in population size
ExplanationGDP does not directly account for changes in population size.
#13
Which of the following is a measure of income inequality often used in economic analysis?
Gini coefficient
ExplanationThe Gini coefficient measures the distribution of income within a population.
#14
Which of the following organizations is responsible for publishing the Consumer Price Index (CPI) in the United States?
Bureau of Labor Statistics (BLS)
ExplanationThe BLS regularly calculates and publishes the CPI.
#15
Which of the following measures the change in the overall level of prices of goods and services in an economy over a period of time?
Inflation
ExplanationInflation reflects the percentage change in the price level over time.