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Questions and Answers
What does gross domestic product (GDP) measure?
What does gross domestic product (GDP) measure?
- Total expenditure on imports and exports
- Market value of intermediate goods
- Total income and spending of a nation (correct)
- Total government expenditure
How is GDP related to a nation’s total income and spending?
How is GDP related to a nation’s total income and spending?
- GDP measures the overall expenditure of imports and exports
- GDP reflects only the total income of the government
- GDP is unrelated to a nation’s total income and spending
- GDP measures the total income and spending for the entire nation (correct)
Which products are included in GDP?
Which products are included in GDP?
- Final goods intended for the end user (correct)
- All products, including intermediate goods
- Only homegrown products
- Illegal drugs and black market products
How is GDP corrected for inflation?
How is GDP corrected for inflation?
Does GDP measure society’s well-being?
Does GDP measure society’s well-being?
What is excluded from GDP measurement?
What is excluded from GDP measurement?
Which of the following is not included in the calculation of GDP?
Which of the following is not included in the calculation of GDP?
If a country's GDP rises but net exports fall, what type of spending has increased?
If a country's GDP rises but net exports fall, what type of spending has increased?
In the context of GDP, what does 'NX' represent in the equation Y (GDP) = C + I + G + NX?
In the context of GDP, what does 'NX' represent in the equation Y (GDP) = C + I + G + NX?
If a household spends $500 on a used car, how does it affect the GDP?
If a household spends $500 on a used car, how does it affect the GDP?
Which component of GDP is affected when a business spends on capital equipment and structures?
Which component of GDP is affected when a business spends on capital equipment and structures?
What happens to GDP if a country's residents spend more on foreign goods than foreigners spend on domestically produced goods?
What happens to GDP if a country's residents spend more on foreign goods than foreigners spend on domestically produced goods?
If a government increases its spending on infrastructure projects, which component of GDP is directly affected?
If a government increases its spending on infrastructure projects, which component of GDP is directly affected?
Which of the following activities is not included in the calculation of GDP?
Which of the following activities is not included in the calculation of GDP?
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