GDP and CPI

What does GDP stand for?

• 1) Gross Domestic Price
• 2) Great Domestic Product
• 3) Gross Domestic Product

What does GDP measure?

• 1) The total value of goods and services produced within a country's borders over a specific period of time.
• 2) The average change in prices of goods and services consumed by households.
• 3) The percentage of the labor force that is unemployed and actively seeking work.

What does CPI stand for?

• 1) Consumer Price Inflation
• 2) Consumer Price Index
• 3) Consumer Price Increase

What does CPI measure?

• 1) The average change in prices of goods and services consumed by households.
• 2) The total value of goods and services produced within a country's borders over a specific period of time.
• 3) The percentage of the labor force that is unemployed and actively seeking work.

What is included in the calculation of GDP?

• 1) The value of all final goods and services produced within a country's borders, excluding intermediate goods and transfer payments.
• 2) The value of all goods and services produced within a country's borders, including intermediate goods and transfer payments.
• 3) The value of all final goods and services produced outside of a country's borders, including intermediate goods and transfer payments.

What is excluded from the calculation of GDP?

• 1) Final goods and services.
• 2) Intermediate goods and transfer payments.
• 3) Foreign-owned firms.

What is the purpose of GDP?

• 1) To reflect the overall health and growth of an economy.
• 2) To measure inflation.
• 3) To measure unemployment.

What are some limitations of GDP?

• 1) It does not take into account factors such as income inequality or environmental sustainability.
• 2) It only measures the value of final goods and services.
• 3) It includes intermediate goods and transfer payments.

What are some limitations of CPI?

• 1) It does not take into account changes in quality of goods and services.
• 2) It measures the cost of living but not inflation.
• 3) It is based on a basket of goods and services that is not representative of all households.