GDP Practice Questions

Front

Which of the following best defines Gross Domestic Product (GDP)?

Back

The total value of goods and services produced within a country's borders in a specific time period

Front

Which of the following would NOT be included in the calculation of GDP? Purchase of a new car by a family, Construction of a new factory by a business, Payment of salaries to government employees

Back

Purchase of stocks and bonds by an individual

Front

Real GDP is adjusted for:

Back

Inflation

Front

Nominal GDP differs from real GDP in that nominal GDP:

Back

Reflects current prices

Front

Which of the following is an example of consumption expenditure in GDP calculation? A household buying groceries for the week, A company purchasing new machinery for its production facility, The government investing in infrastructure projects, Foreign tourists spending money on souvenirs in the country

Back

A household buying groceries for the week

Front

Investment expenditure in GDP calculation includes: Purchase of stocks and bonds, Government purchases of goods and services, Household spending on durable goods, Business spending on new factories and equipment

Back

Business spending on new factories and equipment

Front

Government spending in GDP calculation includes spending on: Social welfare programs, Foreign imports, Private sector investments, Corporate bonuses

Back

Social welfare programs

Front

Net exports in GDP calculation are calculated by:

Back

Subtracting imports from exports

Front

Which of the following would NOT be included in GDP calculation as government spending?
Building new schools, Paying unemployment benefits

Back

Paying unemployment benefits

Front

Which category of GDP expenditure includes spending on housing? Options: Consumption, Investment, Government Spending, Net Exports

Back

Investment