10 Questions
What is included in the Consumption component of GDP?
Total value of all goods and services consumed by households
A company buys new machinery for $500,000. Which component of GDP would this be counted as part of?
Investment
What type of activities are not included in GDP?
Non-market transactions like volunteer work
What is the Net Exports component of GDP calculated as?
Value of a country's exports minus its imports
If the government spends $1,000,000 on building a new school, which component of GDP would this be part of?
Government Spending
What is excluded from reflecting current production of goods and services?
Financial transactions, such as buying stocks or bonds
What type of unemployment is caused by a mismatch between the skills workers have and the skills employers need?
Structural unemployment
During which phase of the business cycle is the lowest unemployment rate typically observed?
Expansion phase
What tends to increase during the expansion phase of the business cycle?
Inflation rate
What is the formula for calculating the unemployment rate?
Unemployment rate = (Number of unemployed / Labor force) x 100
Test your knowledge on the components of GDP including Consumption and Investment. Understand how Consumption represents the total value of goods and services consumed by households, while Investment covers business investments in equipment, structures, and inventories.
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