Understanding GDP Components and Calculation

What are the four parts of GDP according to the expenditure approach?

• Consumption, investment, government spending, and net exports

• Consumption, savings, taxes, and imports

• Investment, savings, taxes, and exports

• Government spending, imports, savings, and consumption

Why is GDP per capita growth important?

• It indicates a decrease in population

• It shows economic progress and a higher standard of living

• It reflects the total government spending

• It measures the total exports of a country

Which of the following is not included in the expenditure approach to GDP?

• Consumption

• Investment

• Savings

• Net exports

How can GDP be calculated using basic data?

• By using numbers and formulas

• By estimating population growth

• By analyzing import and export data

• By calculating tax revenues

What does a rising GDP per capita indicate?

• A decrease in national debt

• Economic progress and a higher standard of living

• An increase in government spending

• A reduction in inflation rates

Which component of GDP includes spending on goods and services by households?

• Investment

• Consumption

• Government spending

• Net exports

What is the role of net exports in GDP calculation?

• It measures total imports

• It reflects the difference between exports and imports

• It calculates government spending

• It estimates household consumption

Which of the following is a component of GDP that involves spending by businesses on capital goods?

• Consumption

• Investment

• Government spending

• Net exports

What does the term 'expenditure approach' refer to in GDP calculation?

• Calculating GDP based on income

• Calculating GDP based on total spending

• Calculating GDP based on production

• Calculating GDP based on savings

Which of the following best describes government spending in the context of GDP?

• Spending on consumer goods

• Spending on public services and infrastructure

• Spending on imports

• Spending on private investments