Measuring GDP

There is an unexpected boom in the stock market. Will you account this in the GDP growth?

• NO, Financials instructions are not considered
• Yes, it will lead for an increase in demand
• Confidence in the market does not translate to GDP
• Yes, Stock market reflects growth in Investments

There is a widespread fear of recession. How will this effect the GDP?

• No effect until we see decline in consumption pr production

• The GDP will decline as the demand will decline.

• The GDP will increase due to an increase in savings

• The GDP will depend the level of recession.

There is an increase in transfer payments. Will this effect the GDP?

• Yes, since the beneficiaries will eventually buy more stuff.

• Yes, as the government expenditure will increase.

• No, SInce they have not produced any goods or services.

• No, Since these are made directly to the citizens of the country.

The Rupee Appreciates. Will you account this in the GDP growth?

• No, The Exchange rate has no effect on GDP.

• Yes, The exports will be expensive, this will increase the GDP

• Yes, The exports will be expensive, this will decrease the GDP

• Yes, people will want to save money and not spend.

There is a significant increase the E-commerce platforms like OXL and Quickr, offering a lucrative market for used goods. Will you account for this in the GDP growth?

• Yes, high quality used goods will affect the GDP.

• No, Only finished goods are accounted for in the GDP.

• Yes, GDP counts for all Goods and Services produced in an year.

• No, Used goods have already been accounted for in the year they were produced.

Mark always makes changes to his Android phone for personal use. This is legally allowed for Andriod users. Is this effort counted in GDP?

• No - Black Market

• No - Non-market Activity

• No - Unreported Income

• No - Purely financial transaction 

High levels of GDP per capita indicate...

• Higher levels of happiness

• Higher standard of living

• Equal levels of wealth

• Self-sufficient communities

Dover Downs will sell millions of dollars of NASCAR merchandise on race weekend. Will this be included in GDP?

• Yes - Investment

• Yes - Consumer Spending

• No - used items

• No - intermediate goods

How does investment in capital goods by companies help a country increase its GDP?

• The GDP of a country goes down when companies make more money.

• Companies that invest in capital goods are able to provide a better place for their workers to work.

• When a company invests in capital, it can produce more goods at a better price and increase the profit that it makes.

• Highly trained workers help the company be more profitable by finding ways to help the company work better.

What cannot be measured to find the countries GDP?

• Expenditure

• Income

• Output

• Wealth