Gross Domestic Product (GDP)

1. What does GDP stand for?

A) General Distribution Process
B) Government Debt Percentage
C) Global Development Program
D) Gross Domestic Product

2. Inflation-adjusted GDP is also known as:

A) Per capita GDP
B) Nominal GDP
C) Real GDP
D) Potential GDP

3. Which sector of the economy includes farming and mining?

A) Primary sector
B) Secondary sector
C) Quaternary sector
D) Tertiary sector

4. GDP can be calculated by summing:

A) Consumption + Savings + Exports - Imports
B) Consumption + Investment + Government Spending + Net Exports
C) Investment + Taxes - Imports + Exports
D) Income + Consumption + Net Exports - Government Spending

5. What is the largest component of GDP in most economies?

A) Government spending
B) Consumption
C) Net exports
D) Investments

6. What is the difference between GDP and GNP?

A) GDP is adjusted for inflation, while GNP is not
B) GDP measures wealth, while GNP measures income
C) GDP measures economic output within a country, while GNP measures output by country's residents worldwide
D) GDP includes government spending, while GNP does not

7. How does government spending impact GDP?

A) Increases GDP through direct expenditures
B) Has no impact on GDP
C) Decreases GDP by reducing consumer spending
D) Negatively impacts GDP by raising taxes

8. Which organization releases GDP data for the United States?

A) Bureau of Economic Analysis (BEA)
B) World Bank
C) Federal Reserve
D) IMF

9. When GDP growth rate is negative for two consecutive quarters, it is known as:

A) Stagnation
B) Recession
C) Expansion
D) Depression

10. Which component of GDP reflects the value of exports minus imports?

A) Government spending
B) Investments
C) Consumption
D) Net exports

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