Worksheetsgdp knowledge test
Total questions: 21
Worksheet time: 21mins
Which of the following is an example of Consumption in the context of Gross Domestic Product (GDP)?
Building Construction
Roads and Bridges
Purchase of groceries
Exported domestically produced goods
What does Investment refer to in the Gross Domestic Product (GDP)?
Purchase of groceries
Exported domestically produced goods
Building Construction
Roads and Bridges
Which of the following is considered a Government expenditure in the Gross Domestic Product (GDP)?
Building Construction
Purchase of groceries
Exported domestically produced goods
Roads and Bridges
Net Exports in the context of Gross Domestic Product (GDP) is calculated as:
Purchase of groceries minus goods imported from foreign countries
Exported domestically produced goods minus goods imported from foreign countries
Building Construction minus goods imported from foreign countries
Roads and Bridges minus goods imported from foreign countries
What flows from firms (businesses) to the product market in the circular flow model?
Money for consumption
Income, wages, rent, profit
Goods and services
Land, labor, capital, entrepreneurial ability
What is Gross Domestic Product (GDP)?
The total market value of all final goods and services produced by a country's citizens.
The total market value of all final goods and services produced within a country's borders in a given period of time.
The total market value of all imported goods and services.
The total market value of all exported goods and services.
What is an example of investment in GDP spending components?
A family purchases a new automobile
Tesla invests in a new factory/plant to produce cars
The federal government purchases a fleet of Cadillacs to transport federal employees
Italy purchases GM automobiles, while the US purchases BMWs from Switzerland
What is the reason for only including the value of the final goods in the GDP calculation?
Because the value of inputs is not significant
To avoid double counting as the value of inputs is already included in the output
Because intermediate products have no value
To simplify the calculation process
Which of the following would not be counted in GDP?
A widget produced in Missouri by a Canadian company.
A widget produced in Germany by a U.S. company.
A widget produced in Arkansas by a Chinese company.
A widget produced in Tennessee by a U.S. company.
Business spending on physical capital, new homes, and inventories is counted in which component of GDP?
consumption
investment
imports-exports
government spending
When you pay $9.99 a month for Netflix, which part of GDP does it indicate?
Investment spending
Government spending
Consumption spending
Not counted in GDP
What is an example of a transfer payment that is not included in GDP?
Social security
Buying a cheeseburger
Amazon builds a new warehouse
Roads and Bridges
