Macroeconomics Test

What is the primary focus of macroeconomics?

• Individual firms
• Household spending
• The economy as a whole
• Local markets

Which of the following is NOT a component of GDP?

• Consumption
• Investment
• Net Exports
• Inflation

Which component of GDP accounts for the largest percentage?

• Consumption
• Investment
• Government Spending
• Net Exports

What is the difference between nominal GDP and real GDP?

• Nominal GDP is adjusted for inflation, real GDP is not
• Real GDP is adjusted for inflation, nominal GDP is not
• Both are the same
• Nominal GDP includes only goods, real GDP includes services

Which of the following transactions would be included in GDP?

• Buying a used car
• Building a new school
• Selling a used book
• Receiving a gift

What does 'per capita GDP' measure?

• Total GDP of a country
• GDP divided by the total population
• GDP growth rate
• GDP per household

Which of the following is an example of an intermediate good?

• A new car
• A tire for a new car
• A cheeseburger
• A new house

Which of the following is considered a nonmarket transaction?

• Buying groceries
• Mowing your neighbor's lawn for free
• Selling a car
• Paying for a haircut

What is the formula for calculating GDP?

• C + I + G + NX
• C - I + G + NX
• C + I - G + NX

What does the 'NX' in the GDP formula represent?

• Net Exports
• National Expenditure
• New Exports
• Net Income