Gross Domestic Product (GDP) and Economic Indicators Quiz
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Questions and Answers

Which of the following is NOT a requirement to be included in the GDP?

  • The good or service must be produced within the nation's borders
  • The good or service must be consumed within the nation's borders (correct)
  • The good or service must be produced during the time period
  • The good or service must be final rather than intermediate

Which one of these is the correct definition of GDP?

  • The total value of all goods and services consumed within a nation in a given time period
  • The total value of all goods and services produced within a nation in a given time period
  • The total value of all intermediate goods and services produced within a nation in a given time period
  • The total value of all final goods and services produced within a nation in a given time period (correct)

What does GDP stand for?

  • Gross Domestic Profit
  • Government Domestic Profit
  • Gross Domestic Product (correct)
  • Government Domestic Product

Which letter is used to represent government spending in the GDP equation?

<p>G (C)</p> Signup and view all the answers

Which of the following is NOT one of the four sectors of the economy used to calculate GDP?

<p>Foreign companies (B)</p> Signup and view all the answers

Which of the following is included in the calculation of GDP?

<p>Government spending (B)</p> Signup and view all the answers

What is the formula to calculate GDP?

<p>C + I + G + X (C)</p> Signup and view all the answers

Which of the following is NOT a component of GDP?

<p>Imports (C)</p> Signup and view all the answers

What does the letter X represent in the GDP equation?

<p>Net exports (D)</p> Signup and view all the answers

Which of the following is NOT true about GDP?

<p>Intermediate goods are included in the calculation of GDP (D)</p> Signup and view all the answers

Which of the following best describes a recession?

<p>A prolonged economic contraction lasting two or more quarters (C)</p> Signup and view all the answers

What is the final phase of the business cycle called?

<p>Trough (C)</p> Signup and view all the answers

What is a depression?

<p>A period of high unemployment and reduced business activity (C)</p> Signup and view all the answers

What is stagflation?

<p>A period of rising prices and a slowdown in business activity (D)</p> Signup and view all the answers

When is a business cycle considered complete?

<p>When it goes through all four phases (D)</p> Signup and view all the answers

What is the definition of a trough?

<p>A point at which real GDP and employment stop declining (C)</p> Signup and view all the answers

Which of the following best describes a recession?

<p>A prolonged economic contraction lasting two or more quarters (A)</p> Signup and view all the answers

What is the definition of a recession?

<p>A prolonged economic contraction lasting two or more quarters (C)</p> Signup and view all the answers

What is a depression?

<p>A period of high unemployment and reduced business activity (B)</p> Signup and view all the answers

What is stagflation?

<p>A period of rising prices and a slowdown in business activity (D)</p> Signup and view all the answers

Which form of GDP states GDP in terms of the current value of goods and services?

<p>Nominal GDP (C)</p> Signup and view all the answers

What is real GDP?

<p>An estimate of the GDP if prices were to remain constant from year to year (B)</p> Signup and view all the answers

What is the underground economy?

<p>Market activities that go unreported because they are illegal or to avoid taxation (D)</p> Signup and view all the answers

What does GDP not show?

<p>How the goods and services are distributed (D)</p> Signup and view all the answers

What is Gross National Product (GNP)?

<p>The market value of all final goods and services produced by a country (A)</p> Signup and view all the answers

What is Net National Product (NNP)?

<p>The value of final goods and services less the value of capital goods that become worn out (B)</p> Signup and view all the answers

What is National Income (NI)?

<p>The total income earned in a nation from the production of goods and services (C)</p> Signup and view all the answers

What is Personal Income (PI)?

<p>The income received by a country’s people from all sources (D)</p> Signup and view all the answers

What is Disposable Personal Income (DPI)?

<p>Personal income minus taxes (C)</p> Signup and view all the answers

What are the four stages of the business cycle?

<p>Expansion, Peak, Contraction, Trough (D)</p> Signup and view all the answers

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