GDP Quiz

1. Difference between Real and Nominal GDP is

• A. Measured by excluding some of the sectors

• B. That real GDP is always smaller than Nominal GDP

• C. Change in output level from base year to current year

• D. None of the above.

2. GDP is market value of all the final goods

• A. Produced domestically

• B. Produced by foreign factors of production

• C. Produced by all factors of inflation

• D. All of the above

3.  Macroeconomics is the study of…

• A. Households & inflation

• B. Entire Economy

• C. Individual Consumers

• D. None of the above

4. Which of the following is not included in a country’s GDP?

• A. Consumer Spending

• B. Business Investment

• C. Net Trade

• D. Stock Exchanges

5. Which of the following is included in a country’s GDP?

• A: Non-Market Activities

• B: Net Trade

• C: Stock Exchanges

• D: Intermediate Goods

6. A car produced in America but sold in Mexico

• A. Excluded from GDP

• B. A durable good

• C. Included in GDP

• D. Excluded from CPI.

7. Which of the following is an intermediate good?

• A. iPads

• B. Eggs

• C. Glass for windows

• D. Chips

8. To Avoid double counting when they measure gross domestic product, economists

• A.    Count only final goods

• A.    count only intermediate products

• A.    use a value-added approach

• A.    All of the above

9. Which sector of GDP would a purchase of a foreign automobile be included?

• A. Personal Consumption

• B. Government Spending

• C. Buisness Investments

• D. Not included in GDP

• E. None of the above

10. Which of the following best describes GDP?

• A. the value of all the finished goods and services produced within a country in a decade.

• B. the value of all products created by all economies worldwide

• C. the value of all products sold in the United States.

• D. the value of all the finished goods and services produced within a country in a year.