Gross Domestic Product Quiz

Gross Domestic Product (GDP) ONLY refers to the total value of FINAL goods and services produced in a country in one year

• True
• False

Which of the following is included in US gross domestic product (GDP)?

• Mazda cars built at the factory in Austin, Texas

• Honda motorcycles built at the factory in Tokyo, Japan

• Fiberglass used by Ford to build cars

• Tomatoes from your garden that you put in a salad

Which of the following is an example of an intermediate good?

• a new washing machine

• a used bicycle

• tomato sauce

• cheeseburger

Business spending on physical capital, new homes, and inventories is counted in which component of GDP?

• consumption
• investment
• government spending
• imports-exports

Goods, services, and intermediate products bought by people in other countries.

• Import
• Export

John went to Sports Clips and purchased a haircut.  Where would this show up in the GDP formula?

• Consumption
• Investment
• Government Spending
• Exports-Imports

Costco builds a new store in Menomonee Falls, Wisconsin. Where would this show up in the GDP formula?

• Consumption
• Investment
• Government Spending
• Exports-Imports

Would the following be included or not included in GDP?  Grandpa Smith's Social Security check from the government.

• Included
• Not included

The U.S. government agency NASA contracts with a firm in Alabama to provide parts for the space station. Where would this show up in the GDP formula?

• Consumption
• Investment
• Government Spending
• Exports-Imports

What is the formula for GDP?

• C + I + G + (X-M)

• G + I + X - M

• Nominal/Real x 100

• C + I + G + (M-X)