Quiz on Output and Growth

What is the total value of output of goods and services produced in an economy called?

• National income

• National output

• National expenditure

• Gross domestic product

Which of the following is NOT included in the income measure of output?

• Wages

• Rents

• Transfer payments

• Profits

What does GDP stand for?

• General Development Product

• Gross Domestic Product

• General Domestic Product

• Gross Development Product

What is the formula for calculating GDP per head?

• Total output divided by total income

• Total income divided by total population

• Total GDP divided by total population

• Total population divided by total GDP

What is the main difference between nominal GDP and real GDP?

• Real GDP is always higher than nominal GDP

• Nominal GDP includes inflation, real GDP does not

• Nominal GDP is always higher than real GDP

• Real GDP includes inflation, nominal GDP does not

Which of the following is a component of GDP?

• Government spending

• Transfer payments

• Private donations

• Foreign aid

What is one way to achieve long-term economic growth?

• Decreasing exports

• Reducing taxes

• Increasing government spending

• Investing in new capital goods

What does the growth cycle represent?

• The changes in government policy

• The recurrent swings in real GDP

• The phases of economic downturn

• The increase in population

What is a potential drawback of government intervention during an economic downturn?

• Improved living standards

• Increased employment

• Higher tax revenue

• Resource misallocation

What is one benefit of sustained economic growth?

• Higher inflation rates

• Greater availability of goods and services

• Lower living standards

• Increased unemployment