GDP Components Quiz
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Questions and Answers

What is included in the Consumption component of GDP?

  • Business investments in equipment and structures
  • Value of a country's exports
  • Total value of all goods and services consumed by households (correct)
  • Government expenditure on final goods and services
  • A company buys new machinery for $500,000. Which component of GDP would this be counted as part of?

  • Consumption
  • Net Exports
  • Government Spending
  • Investment (correct)
  • What type of activities are not included in GDP?

  • Non-market transactions like volunteer work (correct)
  • Value of a country's exports
  • Government expenditure on final goods and services
  • Business investments in equipment and structures
  • What is the Net Exports component of GDP calculated as?

    <p>Value of a country's exports minus its imports</p> Signup and view all the answers

    If the government spends $1,000,000 on building a new school, which component of GDP would this be part of?

    <p>Government Spending</p> Signup and view all the answers

    What is excluded from reflecting current production of goods and services?

    <p>Financial transactions, such as buying stocks or bonds</p> Signup and view all the answers

    What type of unemployment is caused by a mismatch between the skills workers have and the skills employers need?

    <p>Structural unemployment</p> Signup and view all the answers

    During which phase of the business cycle is the lowest unemployment rate typically observed?

    <p>Expansion phase</p> Signup and view all the answers

    What tends to increase during the expansion phase of the business cycle?

    <p>Inflation rate</p> Signup and view all the answers

    What is the formula for calculating the unemployment rate?

    <p>Unemployment rate = (Number of unemployed / Labor force) x 100</p> Signup and view all the answers

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