gdp knowledge test

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 flows from firms (businesses) to the product market in the circular flow model?

• Money for consumption

• Income, wages, rent, profit

• Goods and services

• Land, labor, capital, entrepreneurial ability

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 an example of investment in GDP spending components?

• A family purchases a new automobile

• Tesla invests in a new factory/plant to produce cars

• The federal government purchases a fleet of Cadillacs to transport federal employees

• Italy purchases GM automobiles, while the US purchases BMWs from Switzerland

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

Gross Domestic Product (GDP) ONLY refers to the total value of FINAL goods and services produced in a country in one year

• True
• False

Which of the following goods is included in GDP?

• Dresses
• Screws used in a cruise missile
• Flour for making bread
• Cloth for making dresses