10 Questions
What is the total expenditure equation in the economy?
C + I + G + NX
What is the component of GDP that includes the expenditure by households on consumption goods and services?
Consumption Expenditure
What is the income earned by entrepreneurship in the economy?
Profits
What is the difference between exports and imports of goods and services called?
Net Exports
Why is GDP not a perfect measure of standard of living?
All of the above
What is the component of GDP that includes the purchase of new capital goods and additions to inventories?
Investment
What is the equation to calculate GDP using the income approach?
GDP = Wages + Interest + Rent + Profits
What is the component of GDP that includes the expenditure by all levels of government on goods and services?
Government Expenditure
What is the difference between nominal GDP and real GDP?
Nominal GDP is not adjusted for inflation, while real GDP is adjusted for inflation
What is the main use of GDP as a measure of economic activity?
To compare the economy's performance over time
Test your knowledge on how to measure the total production and income of an economy, including the concept of GDP, its calculation, and the difference between nominal and real GDP. This quiz covers the basics of economic statistics and national income accounting.
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