GDP Practice

Which of the following would NOT be counted in the US's GDP?

• A used car your grandfather sold you

• You buy a new pair of shoes online

• A business buys tires to resell

• A city government's spending on a new park

Which of the 4 categories of GDP would this scenario fit in to?

A mechanic fixes a car transmission

• Consumer expenditure

• Net exports

• Government spending

• Investment

Which of the 4 categories of GDP does this scenario fall into?

A business purchases computer software and tablets for their employees

• Consumer expenditure

• Investments

• Government spending

• Net exports

Which of the 4 categories of GDP does this scenario fall into?

A local library purchases new audiobooks

• Government spending

• Net exports

• Consumer expenditure

• Investments

Which of the following is NOT a category of GDP?

• Government spending

• Domestic labor

• Investment

• Net exports

The economy of Fruitland only produces 2 goods. Calculate their GDP using the following information. This year, they produced 25 bushels of apples and 37 bushels of pears. If each bushel sells for $100, what is Fruitland's GDP?

• 2500

• 1200

• 6200

• 3700

GDP is measured in __________________

Which of the following would be counted in the US's GDP?

• A car produced in Korea by an American car company

• Your aunt pays you to babysit your cousin

• A French company based in the US makes frozen pastries

• A business buys ingredients to make canned soups

An increase in GDP is an indicator of _______________________

A positive economic growth rate is related to an improved __________________