GDP Study Guide

GDP is measured by which of the following methods and what does it tell us about the economy?

• By calculating the total value of goods and services produced, indicating the economic health and size.

• By measuring the total population, indicating the demographic trends.

• By assessing the total land area, indicating the geographical size.

• By evaluating the total number of businesses, indicating the business density.

Which country has a better trade balance?

• Country A

• Country B

• Country C

• Country D

Considering the sales and imports/exports, which country has a higher total economic activity?

• Country A

• Country B

• Country C

• Country D

Whose economy performed better? Why?

• Country A's economy performed better because of higher GDP growth.

• Country B's economy performed better due to lower unemployment rates.

• Country C's economy performed better because of increased exports.

• Country D's economy performed better due to technological advancements.

GDP is:

• Gross Domestic Product

• Global Domestic Product

• General Domestic Product

• Gross Development Product

What kinds of expenditures count towards GDP? What counts as a negative?

• Consumption, Investment, Government Spending, Net Exports; Imports count as a negative

• Only Consumption and Investment; Government Spending and Net Exports count as a negative

• Consumption, Government Spending, and Net Exports; Investment counts as a negative

• Only Government Spending and Net Exports; Consumption and Investment count as a negative

It is important to measure the success of an economy because:

• it helps in assessing the overall health and growth of a nation.

• it is a requirement by international bodies.

• it is a tradition followed by all countries.

• it is a way to compare with other economies.

What does GDP stand for?

• Gross Domestic Product

• Global Domestic Product

• General Domestic Product

• Gross Domestic Power

Which of the following best describes 'Gross' in GDP?

• A) Within a country

• B) Total (no deductions)

• C) Goods and services

• D) Market value

GDP is the sum of the prices (market value) of all final goods and services within one country within a given period of time.

• True

• False