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GDP
GDP
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Macroeconomics
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Questions
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Answers
1
What does GDP represent?
Market value of final goods / services produced in one year
Sum of all costs of goods / services produced in one year
A country's total Net Worth
The market value of all of a country's Exports
2
Fill in the missing value: GDP = Consumption + Government Spending + __________ + Net Exports
Government Expenses
Net Imports
Average Income
Investments
3
What is the method for calculating GDP?
Income Method
Expenditure Method
Production Method
All of the Above
4
Which statement is true?
A country with a higher GDP has a more healthy economy
If GDP Growth Rate is positive, the Economy is Expanding
None are true
If GDP Growth Rate is negative, the economy is in recession
5
Government Spending like Social Security and Welfare are not recorded in GDP because.....
They are calculated in GDP
Because this money leaves the country's borders
Because this money is not tax revenue
The Sellers are not offering any Goods / Services
6
Goods / services that are not counted in the equation because they're over counted are called..
The Underground Economy
Indeterminate Goods / Services
Production Goods / Services
Non-Market Goods / Services
7
The Underground Economy (Black Market) is not calculated in GDP because......
These are transactions that do not take place in a market
Sellers are not offering Goods / Services
Transactions are not officially recorded
Because all of the transactions are illegal.
8
True or False: GNP measures Goods / Services produced by the country's citizens
False
True
9
What is the best way for one to look into
Wellbeing
of a country by looking at its GDP?
GDP does not measure Wellbeing
Compare overall GDPs of two countries
Look at GDP per Capita
Looking at GNP is the best way.
10
On an Aggregate Supply/Demand graph, which gap is seen on the right side of "full employment"?
Equalibrium
Inflationary Gap
Economic Growth Gap
Recessionary Gap
11
Which is the correct name for the value of GDP that is adjusted for Inflation?
All of the Above. They are all adjusted
Real GDP
GNP
GDP
12
Why are the Expenditure and Income Methods Opposites?
There is no difference between these two
Because one is Assets and the other is Liabilities
Because one measures Spending and another measures Earnings
Because one is used for GDP and the other is used for GNP
13
Which is the more important value?
GDP
Growth Rate of GDP
14
Is GDP an important economic tool?
Yes
Yes
15
True or False:
Aggregate
means total Supply/Demand for a single product
True
False
16
What is an example of a
Shortcoming
of GDP?
The Black Market
All of the Above
Non-economic sources of Wellbeing
Leisure Time
