Test Your Knowledge
GDP
Click on the letter choices to test your
understanding
A
B
C
Question 1
• GDP is defined as:
A
• The amount by which the revenues of
the Federal Government exceed its
expenditures each year
B
• The total market value of all final
goods and services produced within a
country in a given period, usually a
year
C
• The expenditures made in an
economy on capital goods
Question 2
• GDP is measured by:
A
• The Bureau of Labor
Statistics
B
• The Federal Reserve
C
• The Bureau of Economic
Analysis (BEA)
Question 3
• GDP can be expressed by which formula?
A
• C + I + G + (X-M)
B
• MV=PQ
C
• S=I + NX
Question 4
• The components of GDP are:
A
B
C
• Consumption, Investment,
Government Spending, and
Net Worth
• Consumption, Investment,
Government spending, and
Net Exports
• Government revenues minus
government spending
Question 5
• The largest component of GDP is:
A
• Government spending
B
• Investment
C
• Consumption
Question 6
• Consumption refers to:
A
• Expenditures by households
on goods and services
B
• Household spending on
goods, but not services
C
• Spending by both households
and government on goods
and services
Question 7
• GDP does not include:
A
• Financial transactions
B
• Services
C
• Construction of new
buildings and homes
Question 8
• How does real GDP differ from nominal GDP?
A
• Nominal is the estimated GDP for
the coming year, while real is the
actual calculated rate
B
• Nominal GDP only counts
consumption expenditures; Real
GDP also counts investment and
government spending
C
•Real GDP is nominal GDP adjusted
for inflation
Question 9
• Real GDP per capita is:
A
• The capital expenditures
per person of a nation
B
• The average real output
per person
C
• A good measure of a
country’s standard of
living
Question 10
• The Business Cycle:
A
• Is predictable and avoidable
B
• Accurately depicts how real life
cycles behave
C
• Refers to economic upturns and
downturns over time reflecting
the cyclical nature of the
economy
Thank You for participating in
“Test Your Knowledge”