GDP Components and Measurement Quiz
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Questions and Answers

Which component of GDP includes spending on new construction and spending on renovations?

  • Net exports
  • Investment (correct)
  • Government spending
  • Consumption
  • If a country's GDP is increasing while its population is decreasing, what could this indicate?

  • Decreased productivity and economic decline per person
  • No correlation between GDP and population changes
  • An increase in inflation rates
  • Increased productivity and economic growth per person (correct)
  • What does Gross Domestic Product (GDP) measure?

  • The total value of exports minus imports for a country
  • The total value of goods and services produced within a country's borders in a specific time period (correct)
  • The total income earned by a country's residents and businesses, regardless of where they are located
  • The total government spending in a country
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