GDP 2 Quiz

What is the branch of economics concerned with individual areas of economic activity?

• International Economics

• Microeconomics

• Macroeconomics

• Behavioral Economics

Which department in the United States computes the GDP?

• Department of Commerce

• Department of State

• Department of Treasury

• Department of Labor

What is the formula used to calculate the components of GDP?

• Y = C + I + G + X

• Y = C - I + G + X

• Y = C + I + G - X

• Y = C + I - G + X

Which economic indicators rise or fall just before a major change in economic activity?

• None of the above

• Lagging economic indicators

• Coincident economic indicators

• Leading economic indicators

What is the purpose of the earnings-and-cost approach in determining GDP?

• Account for all money received for the production of goods and services

• Measure total value of money spent on goods and services

• Calculate the flow-of-product approach

• Estimate the consumer spending

What does the GDP measure?

• Total land area of a country

• Total number of businesses in a country

• Monetary value of finished goods and services manufactured within a country

• Total population of a country

What does the GDP formula Y = C + I + G + X stand for?

• GDP = Consumption + Investment + Government + Net Exports

• GDP = Consumption + Investment + Government - Net Exports

• GDP = Consumption - Investment + Government + Net Exports

• GDP = Consumption + Investment - Government + Net Exports

What is the branch of economics concerned with the major, general features of a country’s economy?

• Macroeconomics

• International Economics

• Microeconomics

• Behavioral Economics

What is included in the earnings for the production of goods and services?

• Business profits, wages and salaries, taxes, interest on deposits

• Consumer spending, investments, government outlays, net exports

• Exports, imports, government spending, investments

• Personal consumption, business investment, government spending, net exports

What is the flow-of-product approach used for in determining GDP?

• Account for all money received for the production of goods and services

• Calculate the consumer spending

• Count all money spent on goods and services to determine total value

• Measure total value of money spent on goods and services