Pre Test 4

The Gross Domestic Product measured in current prices describes what?

• Real GDP

• Current GDP

• Nominal GDP

• Total GDP

As real GDP increases, what else increases?

• Nominal GDP

• Employment

• Unemployment

• Business

Which is a final product in a bakery?

• Cake
• Flour
• Eggs
• Sugar

An airline buying a plane belong in which part of the GDP formula?
GDP = C+I+G+(X-M)

• Consumption Expenditures
• Investment Expenditures
• Government Expenditures
• Net Imports

Cars, TVs, computers belong in which part of the GDP formula?
GDP = C+I+G+(X-M)

• Consumption Expenditures
• Investment Expenditures
• Government Expenditures
• Net Imports

Tanks and roads belong in which part of the GDP formula?
GDP = C+I+G+(X-M)

• Consumption Expenditures
• Investment Expenditures
• Government Expenditures
• Net Imports

What does X represent in calculating net imports?
X-M

• Imports
• Exports
• Expenditures
• None of the Above

What does M represent in calculating net imports?
X-M

• Imports
• Exports
• Taxes
• None of the Above

What type of GDP is calculated with the current year's prices?

• Nominal GDP
• Real GDP
• GDP per capita

GDP is calculated by

• adding up the cost of goods used in producing the item
• subtracting all costs from total revenue
• adding consumption + investment +government spending+ (exports sold - imports bought)