#1
Which of the following is included in the calculation of Gross Domestic Product (GDP)?
Government spending
Exports
Social Security payments
All of the above
#2
What does GDP stand for?
Gross Domestic Production
Gross Domestic Profit
Gross Domestic Product
Gross Domestic Price
#3
Which of the following is a measure of a nation's total output?
Gross National Product (GNP)
Net National Product (NNP)
Gross Domestic Product (GDP)
Net Domestic Product (NDP)
#4
What is the largest component of GDP in most countries?
Government spending
Consumption
Investment
Net exports
#5
What does GDP measure?
The total value of all goods and services produced within a country in a given period
The total value of all goods and services produced by a country's citizens regardless of location
The total value of all goods and services produced and consumed within a country
The total value of all goods and services sold by a country to other nations
#6
Which of the following is not a component of GDP?
Government spending
Investments
Imports
Personal consumption expenditures
#7
If a country's GDP increases while its population remains constant, what can you infer about the standard of living?
It has increased
It has decreased
It has remained the same
Cannot be determined
#8
Which of the following is an example of an intermediate good?
A loaf of bread purchased by a consumer
Steel purchased by a car manufacturer
A car purchased by a family
A new house purchased by a homeowner
#9
What does GDP per capita measure?
The total economic output of a country
The average income per person in a country
The total population of a country
The inflation rate of a country
#10
Which of the following would be considered a part of investment in the calculation of GDP?
A household purchasing a new television
A company buying new machinery for its factory
Government spending on healthcare
A person paying for a vacation
#11
Which of the following best describes the expenditure approach to calculating GDP?
It measures the total value of goods and services produced in an economy.
It calculates GDP by summing all expenditures on final goods and services in an economy.
It measures the income earned by individuals and businesses in an economy.
It assesses the value added at each stage of production in an economy.
#12
Which approach calculates GDP by summing the incomes that firms pay households for the factors of production they hire?
Production approach
Expenditure approach
Income approach
Value-added approach
#13
What is the equation used to calculate GDP using the expenditure approach?
GDP = C + I + G + (X - M)
GDP = W + R + I + (X - M)
GDP = C + I + (X - M)
GDP = C + I + G
#14
In the income approach to calculating GDP, which of the following is NOT included as a factor of production?
Wages and salaries
Rent
Profits
Consumer spending
#15
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 domestic production, while real GDP includes foreign production.
There is no difference between nominal GDP and real GDP.
#16
What does the GDP deflator measure?
The rate of inflation
The ratio of nominal GDP to real GDP
The ratio of real GDP to nominal GDP
The unemployment rate
#17
If a country's GDP is increasing, but its GDP per capita is decreasing, what could be happening?
The population is decreasing.
The economy is growing faster than the population.
The population is growing faster than the economy.
The economy is in recession.