Measuring the Size of the Economy - Gross Domestic Product

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 amount of people involved in production.

The Expenditures 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 amount of people involved in production.

Which of the following is an example of Consumption in the context of Gross Domestic Product (GDP)?

• Building Construction

• Roads and Bridges

• Purchase of groceries

• Exported domestically produced goods

What does Investment refer to in the Gross Domestic Product (GDP)?

• Purchase of groceries

• Exported domestically produced goods

• Building Construction

• Roads and Bridges

Which of the following is considered a Government expenditure in the Gross Domestic Product (GDP)?

• Building Construction

• Purchase of groceries

• Exported domestically produced goods

• Roads and Bridges

Net Exports in the context of Gross Domestic Product (GDP) is calculated as:

• Purchase of groceries minus goods imported from foreign countries

• Exported domestically produced goods minus goods imported from foreign countries

• Building Construction minus goods imported from foreign countries

• Roads and Bridges minus goods imported from foreign countries

What is Gross Domestic Product (GDP)?

• The total market value of all final goods and services produced by a country's citizens.

• The total market value of all final goods and services produced within a country's borders in a given period of time.

• The total market value of all imported goods and services.

• The total market value of all exported goods and services.

What is the reason for only including the value of the final goods in the GDP calculation?

• Because the value of inputs is not significant

• To avoid double counting as the value of inputs is already included in the output

• Because intermediate products have no value

• To simplify the calculation process

Which of the following is an example of a non-tangible product included in GDP?

• Shampoo

• Conditioner

• Haircuts

• Toothpaste

Which of the following is excluded when calculating the Gross Domestic Product (GDP)?

• New car

• Used car

• Services offered by a new technology company

• Goods produced in the current year