GDP quiz

Question 1

GDP

Answer 1

market value of all final goods and services produced within a nation in a year

Question 2

what gives high GDP

Answer 2

productivity
economic system
property rights
capital
human capital (knowledge)
natural resources

Question 3

what is not counted in GDP

Answer 3

used and intermediate goods
non market production
black market activity
transfer payments
anything made out of country
stocks and bonds

Question 4

expenditures approach/combined spending

Answer 4

GDP = C + Ig + G + Xn
Competition
Gross Private investment
Government spending
Net exports

Question 5

Aggregate Income

Answer 5

Income = R + W + I + P
Rent
Wages
Interest
Profits

Question 6

Four components of GDP

Answer 6

Consumer spendings (70%)
investment (15%)
government spending (20%)
net exports (export - imports)

Question 7

Nominal GDP

Answer 7

the current GDP measured at current market prices (includes inflation)

Question 8

Real GDP

Answer 8

current GDP measured with a fixed dollar (removes inflation, so the REAL one)

Question 9

renovation of an old house

Answer 9

does count for GDP (addition, new supplies)

Question 10

new house built

Answer 10

counts for GDP

Question 11

old house resold (no renovations)

Answer 11

does not count for GDP

Question 12

RGDP per Capita

Answer 12

Real GDP/population
average of how many products each person makes

Question 13

GDP per Capita

Answer 13

best measure of nation’s standard of living

Question 14

value added approach

Answer 14

adding up the value added at each stage of the production process

Question 15

three major economic goals

Answer 15

promote economic growth
limit unemployment
keep prices stable (limit inflation)