Mr. Fox - Quick Quiz GDP

What does Gross Domestic Product (GDP) measure?

a) The total value of all goods and services produced within a country's borders over a specific period.

• The total value of all imports and exports of a country.

• The total value of all government expenditures.

• The total value of all goods and services produced by a country's citizens, regardless of location.

• The total value of all goods and services produced within a country's borders over a specific period.

Which of the following is not included in the calculation of GDP?

• Government spending on infrastructure.

• Consumer purchases of new cars.

• The sale of used furniture.

• Business investments in new machinery.

Is this counted in the GDP of the US?

Cars made by a Japanese company in California.

• Yes

• No

The United States has the highest per capita GDP in the world

• True

• False

Which of the following is not a component of GDP?

• Consumption

• Investment

• Government spending

• Transfer payments