Understanding GDP and Economic Measures

The video tutorial discusses the measurement of economic activity, focusing on GDP and GNI. It explains the income and output approaches, and breaks down GDP and GNI into nominal, real, total, and per capita categories. The tutorial also covers the components of GDP calculation, such as consumer spending, investment, government spending, and net exports. It highlights the challenges in using GDP and GNI as measures of economic performance and introduces the concept of Green GDP, which accounts for environmental impacts.

What is one of the main reasons for measuring economic activity?

• To measure the amount of natural resources

• To calculate the number of businesses

• To assess economic performance over time

• To determine the population size

What does the income approach to measuring economic activity focus on?

• The total value of goods and services

• The amount of exports

• The money earned by factors of production

• The number of jobs created

Which measure is more commonly associated with the output approach?

• Gross Domestic Product (GDP)

• Consumer Price Index (CPI)

• Gross National Income (GNI)

• Net National Product (NNP)

What does 'real GDP' take into account that 'nominal GDP' does not?

• Government policies

• Inflation or deflation

• Population growth

• Technological advancements

How is 'per capita' GDP calculated?

• By dividing GDP by the population size

• By dividing GDP by the number of businesses

• By dividing GDP by the number of exports

• By dividing GDP by the total land area

Which of the following is NOT a component of GDP?

• Consumer spending

• Population growth

• Investment spending

• Government spending

What happens to GDP when a country imports more than it exports?

• GDP remains unchanged

• GDP increases

• GDP doubles

• GDP decreases

Why might GDP not accurately measure standards of living?

• It does not consider environmental factors

• It focuses solely on exports

• It only measures government spending

• It does not account for inflation

What is the purpose of Green GDP?

• To assess the number of green businesses

• To account for environmental degradation

• To calculate the amount of renewable energy

• To measure the number of green jobs

What is a limitation of using GDP as a measure of economic success?

• It does not include government spending

• It does not reflect income distribution

• It only measures domestic production

• It focuses on short-term growth