Unit 2 Econ Quiz

GDP = Consumption by households + Investment by producers + government spending + (imports - exports)

• True

• False

Nominal GDP can rise in value because of two of the below reasons. Which reason is not correct?

• The output of the country increases

• The general level of prices in the country decreases

• The general level of prices in the country increases

Which one of the following is NOT a method of calculating real GDP?

• income method

• savings method

• expenditure method

The following information is taken from the national accounts of Zambibia:

C = R200 million

I = R50 million

G = R150 million

X = R200 million

M = R180 million

Gross Domestic Expenditure is

• R400 million

• R420 million

• R600 million

• R380 million

Which of the following is not a cost of economic growth?

• Distribution of income becomes more unequal.

• Depletion of natural resources

• Decreased inflation

• Pollution and environmental damage

If GDP is £300 billion and the population is 30 million. What is GDP per capita?

• £270 billion

• £100,000

• £10,000

• £1,000

Calculate the economic growth rate if GDP was £60 billion in Year 1 and £63 billion in Year 2.

• 1%

• 5%

• 10%

• 15%

Calculate GDP per capita if GDP is £200 billion and the population is 40 million.

• £1,000

• £2,000

• £5,000

• £10,000

Economic growth measures the

• a) Growth of productivity

• b) Increase in nominal income

• c) Increase in national output

• d) None of the above

A period of macroeconomic expansion or growth, followed by a period of contraction, or decline.

• Business Cycle

• Circular Flow

• Equilibrium

• GDP