Economic Terms Quiz

What does GDP stand for in economic terms?

• General Demand Product

• Gross Domestic Product

• Government Debt Percentage

• Generalized Data Protocol

What is meant by Nominal GDP?

• It measures GDP adjusted for inflation.

• It is the total value of goods produced.

• It measures the monetary value of GDP including inflation effects.

• It is a measure of GDP per capita.

How is Real GDP different from Nominal GDP?

• Real GDP measures GDP including inflation effects.

• Real GDP measures GDP adjusted for inflation effects.

• Real GDP is the total economic output without considering population.

• Real GDP is only calculated annually.

What does the rate of economic growth measure?

• The change in GDP per capita over time.

• The annual or quarterly percentage change in real GDP.

• The total monetary value of GDP.

• The sustainability of economic growth.

Which of the following is a requirement for sustainable economic growth?

• High inflationary growth

• Environmental sustainability

• Decrease in GDP

• Short-term economic planning

According to the graph, what was the economic growth rate in the UK in Q2 2014?

• 0.7%

• 2.8%

• 1.0%

• -0.5%

What is considered a primary economic objective of most governments to enhance living standards and employment?

• Increasing national defense spending

• Sustainable economic growth

• Expanding government surveillance

• Reducing technological innovation

Which of the following is NOT listed as a less important objective of government economic policy?

• Low government borrowing

• Stable exchange rate

• High government transparency

• Issues of equality

According to the document, what could be a potential negative consequence of high economic growth?

• Decreased consumer spending

• Increased income inequality

• Improved government finances

• Lower unemployment

How does economic growth potentially benefit public services according to the text?

• By reducing the quality of public services

• By decreasing tax revenues

• By increasing tax revenues allowing more spending on health care and education

• By promoting private sector involvement only