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Gross Domestic Product - Quiz
Contributed by: Singh
  • 1. What does GDP stand for?
A) General Development Plan
B) Government Debt Projection
C) Global Domestic Production
D) Gross Domestic Product
  • 2. Which of the following is included in GDP?
A) Income inequality
B) Stock market index
C) Savings rate
D) Government spending
  • 3. What is the formula for calculating GDP?
A) GDP = Consumption + Investment + Government Spending + Net Exports
B) GDP = Consumption + Investment + Government Spending - Net Exports
C) GDP = Consumption x Investment x Government Spending x Net Exports
D) GDP = Consumption + Investment - Government Spending + Net Exports
  • 4. What does GDP per capita measure?
A) GDP growth rate
B) Total sales of a country
C) Average economic output per person in a country
D) Government budget surplus
  • 5. What is the difference between real GDP and nominal GDP?
A) Nominal GDP includes government spending, while real GDP does not
B) Real GDP adjusts for inflation, while nominal GDP does not
C) Real GDP ignores exports, while nominal GDP includes them
D) All GDP calculations are the same
  • 6. Which country has the largest GDP in the world as of 2021?
A) United States
B) Germany
C) Japan
D) China
  • 7. What could cause an increase in GDP but not lead to economic growth?
A) Inflation
B) Drop in consumer spending
C) Decrease in government spending
D) Rise in unemployment rate
  • 8. What is the significance of calculating Real GDP as opposed to Nominal GDP?
A) Nominal GDP includes government expenditures, making it higher
B) Real GDP accounts for inflation, providing a more accurate measure of economic output
C) Nominal GDP is always higher than Real GDP
D) Real GDP is used only for developed countries
  • 9. What is the main limitation of using GDP as a measure of economic well-being?
A) It ignores the services sector
B) It fluctuates due to changes in exchange rates
C) It does not account for distribution of income
D) It includes all forms of government spending
  • 10. Which term is used to describe a period of negative economic growth for two consecutive quarters?
A) Depression
B) Inflation
C) Stagflation
D) Recession
  • 11. How often is GDP typically reported in most countries?
A) Monthly
B) Quarterly
C) Biannually
D) Annually
  • 12. What is the significance of Net Exports in GDP calculation?
A) Net Exports have no impact on GDP
B) Net Exports reflect the income earned from overseas investments
C) Net Exports account for the difference between exports and imports, affecting the overall GDP
D) Net Exports represent the total government spending internationally
  • 13. What does the expenditure approach to GDP calculation measure?
A) Total value of all goods and services produced
B) Total imports and exports
C) Total spending on final goods and services
D) Total income earned in an economy
  • 14. What does the GDP deflator measure?
A) Income inequality
B) The unemployment rate
C) The ratio of nominal GDP to real GDP
D) Import prices
  • 15. GDP can be used to compare the economic performance of countries, but what must be taken into consideration when doing so?
A) Population size
B) Geographical area
C) Number of languages spoken
D) Time zones
  • 16. What is the relationship between GDP and standard of living?
A) GDP directly determines the standard of living
B) Standard of living is not relevant to GDP
C) Higher GDP always means higher standard of living
D) GDP provides an indication of a country's economic output, but standard of living considers factors like health, education, and income distribution
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