GDP Flashcards
What does GDP stand for?
Gross Domestic Product
True or False: GDP measures the total economic output of a country.
True
Which of the following is NOT included in GDP calculations? A) Consumer spending B) Government spending C) Illegal activities
C) Illegal activities
Fill in the blank: GDP can be calculated using the ______ approach, which sums the value added at each stage of production.
production
What are the three main components of GDP?
Consumption, Investment, Government Spending, and Net Exports
True or False: Nominal GDP adjusts for inflation.
False
What is the difference between nominal GDP and real GDP?
Nominal GDP is measured at current market prices, while real GDP is adjusted for inflation.
Which method of GDP calculation focuses on total income earned by factors of production?
Income approach
Short answer: What is the formula for calculating GDP using the expenditure approach?
GDP = C + I + G + (X - M)
True or False: GDP per capita is a measure of the average economic output per person.
True
Multiple choice: Which of the following is a limitation of GDP as an economic indicator? A) It includes unpaid work B) It measures income inequality C) It does not account for environmental degradation
C) It does not account for environmental degradation
Fill in the blank: GDP growth rate is often used to indicate the ______ of an economy.
health
True or False: A higher GDP always indicates a better quality of life for a country’s citizens.
False
What is the term for the total value of all final goods and services produced within a country’s borders in a specific time period?
Gross Domestic Product (GDP)
Short answer: What does a negative GDP growth rate indicate?
An economic contraction or recession
Multiple choice: Which country has the highest GDP in the world as of 2023? A) China B) United States C) Japan
B) United States
What does the term ‘GDP deflator’ refer to?
A measure of the level of prices of all new, domestically produced, final goods and services in an economy.
True or False: GDP includes the value of all goods and services produced by residents and businesses of a country, regardless of where they are located.
False
Fill in the blank: The GDP is often used by policymakers to inform ______ decisions.
economic
Short answer: What is the significance of the GDP per capita metric?
It provides insight into the standard of living and economic performance of a country on a per-person basis.
