GDP first lesson

A restaurant buys strawberries to make a smoothie. The purchase of the strawberries is added to GDP under consumption.

• True

• False

 If real GDP is £100 and the number of people in a country is 20, then real GDP per capita in that country is:

• £5

• £100

• £120

• £2000

Prices typically rise for similar goods over time, the economic term for this is

• Real GDP

• Nominal GDP

• Inflation

• Correlation

Which GDP measure best approximates the standard of living over time?

• Nominal GDP

•     Real GDP

• Nominal GDP per capita

• Real GDP per capita

Which of the following is NOT included in GDP?

• A professional nanny looking after a child

• A father staying at home taking care of his children

• A maths tutor giving lessons at his home

• A maths tutor buying a course book for his daughter

Imported oranges to the United States from the Dominican Republic are counted towards which country’s GDP?

• Dominican Republic

• The U.S.

• Both

• Neither

Based on the graph which shows nominal (red) and real (blue) GDP, we can claim that

• Turkish standard of living is falling

• Turkey' s standard of living is rising fast

• Prices have risen in Turkey

• Prices have fallen in Turkey

In statistics, GDP is an example of a flow variable.

• True

• False

Capital goods are not included in GDP because they are not resold.

• True

• False

There are 3 ways of calculating GDP: the income approach, the expenditure approach and the spending approach.

• True

• False