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WorksheetsMeasuring GDP and Economic Growth
Total questions: 15
Worksheet time: 20mins
GDP or gross domestic product is the market value of all final and intermediate goods and services produced in a country in a given time period.
True
False
Which of the following is NOT part of GDP definition?
Market value
Intermediate goods and services
Produced within a country
Given time period
Which of the following gives the correct combination for the approaches used to measure GDP?
GDP = C + I + G + (NX - M)
production, expenditure and income
value-added, income and compensation of employees
GDP = C + I + G + (X - M)
Compensation of employees is the payments for labor services, net interest, rental income, corporate profits, and proprietors are the payment for ___________ and profit for ___________
entrepreneurship, capital and land
land, entrepreneurship
land, capital
capital and land, entrepreneurship
Nominal GDP is the value of goods and services produced during a given year valued at the prices of a reference base year.
True
False
Economists use estimates of real GDP for ___________ , while real GDP per person for __________
comparing the wealth of a nation, comparing the standard of living
comparing the standard of living, comparing the wealth of a nation
comparing the standard of living, telling the value of goods the average person can enjoy
comparing the wealth of a nation, telling the value of goods the average person can enjoy
By using nominal GDP, we remove any influence that rising prices and a rising cost of living might have had on our comparison.
True
False
The value of real GDP when all the economy’s labor, capital, land, and entrepreneurial ability are fully employed is called potential GDP.
True
False
What are the two phases in a business cycle?
Peak and trough
Peak and recession
Expansion and recession
Expansion and trough
Some of the factors that influence the standard of living and that are not part of GDP are __________
household production
underground economic activity
environmental quality
All answers are correct
Calculate the GDP value based on the following information.
- household consumption : RM150 - government purchases : RM350
- export : RM75 - net trade : RM35 - intermediate purchases : RM95
- private and public investments : RM250
RM785
RM825
RM845
RM955
Calculate the percentage of GDP contribution by government expenditure component
C = RM11,384 I = RM2,562 G = RM3,754 X-M = -642
3.8%
22.0%
15.0%
66.7%
Calculate the total percentage GDP contribution by personal consumption expenditures and gross private domestic investment components
C = RM11,384 I = RM2,562 G = RM3,754 X-M = -642
81.8%
37.0%
85.0%
78.0%
In 1960, real GDP per person was RM9,210 and in 2018, it was RM49,658. How big is the size of GDP in 2018 compared to 1960?
4.5 times
0.2 times
5.3 times
5.4 times
How do you rate your knowledge for Chapter 21? Please rate between A to E
A
B
C
D
E
