GDP Exam

What is the equation of GDP using the Expenditure Approach?

• C + I + (X+N)

• C + I + G

• C + I + G + (X-N)

• C + G + U + (X+N)

In the GDP equation, what does the 'G' stand for?

• Government taxes

• Government spending

• Government budget

• Good Government

Which of the following is the best measurement of economic growth?

• Nominal GDP

• Real GDP

• GDP per capita

• Real GDP per capita

What is the total value of all final goods and services produced in the economy calculated using the prices of a selected base year?

• Nominal GDP

• Real GDP per capita

• Real GDP

• GDP per capita

The Income Approach of Calculating GDP includes...

• All spending on final products in the year.
• All Income made from selling all final goods.
• All costs on all products.
• The ammount of people involved in production.

Which of the folowing goods is included in GDP?

• Dresses

• Screws used in a cruise missile

• Flour for making bread

• Cloth for making dresses

• Burgers

How is nominal GDP calculated?

• Use the current year's prices to calculate the value of the current year's output

• Calculate the % change from one year to another

• Calculate the amount of taxes citizens pay

• Calculate the total amount of goods bought within the year

Which of the following is NOT measured in GDP?

• Illegal narcotics sales

• Running a plumbing business

• Selling produce

• Buying an American-made car

Because most economic activity in the underground economy goes unreported, GDP is :

• overstated

• unaffected

• understated

• any of the above

High levels of GDP per capita indicate...

• Higher levels of happiness 
• Higher standard of living
• Equal levels of wealth 
• Self-sufficient communities