Understanding GDP

GDP, or Gross Domestic Product, is a key economic indicator representing the total market value of all final goods and services produced in an economy within a year. It can be calculated by summing the prices of goods and services sold or by tracking income and expenditure. GDP is measured quarterly, providing insights into economic growth or contraction, which in turn affects employment and living standards.

What does GDP stand for?

• General Domestic Product

• Gross Domestic Product

• General Domestic Price

• Gross Domestic Price

Which of the following is NOT included in the measurement of GDP?

• Pizza

• New houses

• Used cars

• Cell phones

How is GDP calculated?

• By adding the prices of goods and services

• By multiplying the prices of goods and services by the quantity sold

• By subtracting the prices of goods and services from the quantity sold

• By dividing the prices of goods and services by the quantity sold

In which currency are all goods measured for GDP calculation?

• Yen

• Pounds

• Euros

• US Dollars

What are the two ways GDP can be tracked?

• Import and export

• Income and expenditure

• Production and consumption

• Supply and demand

How often is GDP measured?

• Monthly

• Annually

• Biannually

• Quarterly

What does a growing GDP indicate?

• Decreased government spending

• Increased inflation

• Higher taxes

• More jobs and rising standards of living

What does a contracting GDP suggest about the economy?

• It is in a boom

• It is in a recession

• It is stable

• It is experiencing hyperinflation

Why is GDP considered a useful indicator?

• It shows the level of government debt

• It tracks the stock market performance

• It indicates the health of the economy

• It measures the population growth