Macroeconomics Test

Front

What is the primary focus of macroeconomics?

Back

The economy as a whole

Front

Which of the following is NOT a component of GDP? Consumption, Investment, Net Exports, Inflation

Back

Inflation

Front

Which component of GDP accounts for the largest percentage? Options: Consumption, Investment, Government Spending, Net Exports

Back

Consumption

Front

What is the difference between nominal GDP and real GDP?

Back

Real GDP is adjusted for inflation, nominal GDP is not.

Front

Which of the following transactions would be included in GDP? Buying a used car, Building a new school, Selling a used book, Receiving a gift

Back

Building a new school

Front

What does 'per capita GDP' measure?

Back

GDP divided by the total population

Front

Which of the following is an example of an intermediate good? A new car, A tire for a new car, A cheeseburger, A new house

Back

A tire for a new car

Front

Which of the following is considered a nonmarket transaction? Buying groceries, Mowing your neighbor's lawn for free, Selling a car, Paying for a haircut

Back

Mowing your neighbor's lawn for free

Front

What is the formula for calculating GDP? Options: C + I + G + NX, C - I + G + NX, C + I - G + NX

Back

C + I + G + NX

Front

What does the 'NX' in the GDP formula represent?

Back

Net Exports