economics important questions

Front

In a __________ economic system, customs and traditions determine what and how to produce.

Back

traditional

Front

What does GDP stand for?

Back

Gross Domestic Product

Front

Which of the following is a component of GDP? Government Spending, Foreign Aid, Charitable Donations, All of the Above

Back

Government Spending

Front

What is the primary use of GDP?

Back

To measure economic performance

Front

What is the formula for calculating GDP?

Back

Consumption + Investment + Government Spending + Net Exports

Front

Factors that can lead to an increase in GDP: Increased consumer spending, Higher unemployment rates, Decreased government spending, Lower export levels

Back

Increased consumer spending

Front

What is a limitation of using GDP as an economic indicator?

Back

It does not account for income inequality

Front

What is the difference between nominal GDP and real GDP?

Back

Nominal GDP measures economic output at current prices, while real GDP measures it at constant prices

Front

Which of the following is NOT a method for calculating GDP? Market Approach, Production Approach, Expenditure Approach, Income Approach

Back

Market Approach

Front

How does an increase in exports affect GDP?

Back

It increases GDP