Understanding GDP Components and Importance

Front

What does GDP stand for?

Back

Gross Domestic Product

Front

Which of the following is included in GDP calculations? Used goods, Black market activities, Newly manufactured goods, Unpaid household work

Back

Newly manufactured goods

Front

Which component of GDP includes household spending on goods and services?

Back

Consumption

Front

Which component of GDP includes spending on infrastructure like roads and schools?

Back

Government Spending

Front

What is the formula for GDP?

Back

GDP = C + I + G + NX

Front

Which of the following is NOT included in GDP? Black market activities, Machinery, Consumer goods, Agricultural products

Back

Black market activities

Front

What does the 'Net Exports' component of GDP measure? Options: Exports - Imports, Imports - Exports, Total Exports, Total Imports

Back

Exports - Imports

Front

Why is GDP an important measure?

Back

It measures a country's economic performance.

Front

Which of the following situations would have a positive impact on GDP for the United States? An increase in the production of Canadian chairs, A decrease in foreign trade, An decrease in quotas, An increase in domestic consumption spending

Back

An increase in domestic consumption spending