This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Gdp > Gdp – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Gdp Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A pair of sneakers currently is $ 85.65. If the CPI is 124.6, what was the cost in 1983? A) $ 5.68. B) $ 68.74. C) $ 55.58. D) 68.54. Show Answer Correct Answer: B) $ 68.74. 2. Which of the following is most appropriate about GDP as a measure of welfare? A) GDP is the single best measure of welfare. B) GDP is not used to measure welfare. C) GDP have some limitations as a measure of welfare. D) GDP is not at all a measure of welfare. Show Answer Correct Answer: C) GDP have some limitations as a measure of welfare. 3. The village of Menomonee Falls purchases a new fire truck. Where would this show up in GDP formula? A) Government Spending. B) Exports-Imports. C) Investment. D) Consumption. Show Answer Correct Answer: A) Government Spending. 4. What do entrepreneurs contribute to the MOST? A) Public sector growth and GDP growth. B) Private sector growth and GDP growth. C) Public sector growth and GDP decline. D) Private sector growth and GDP decline. Show Answer Correct Answer: B) Private sector growth and GDP growth. 5. In which category of 2015 GDP would you find the following transaction. Toyota purchases steel from US Steel in Pittsburgh for use in it's Ohio assembly plant. A) Does not count in GDP. B) Investment. C) Government. D) Consumption. Show Answer Correct Answer: A) Does not count in GDP. 6. The CPI for roasted coffee is 182.3. The current cost is $ 8.29. What was the cost in for roasted coffee in 1983? A) $ 4.55. B) $ 4.35. C) $ 5.45. D) $ 4.50. Show Answer Correct Answer: A) $ 4.55. 7. What 2 types of inflation are there? A) Demand pull and cost push. B) Demand pull and supply glut. C) Supply glut and demand side. D) Supply inflation and demand inflation. Show Answer Correct Answer: A) Demand pull and cost push. 8. Real GDP measures: A) Base year output at current prices. B) Current output at base year prices. C) Base year output at current exchange rates. D) Current output at current prices. Show Answer Correct Answer: B) Current output at base year prices. 9. Which measure of GDP represents changes strictly in the quantity of goods and services produced in the economy, not the prices? A) Nominal GDP. B) Real GDP. C) The GDP measure that sums up the value of goods and services evaluated at current year prices. D) None of the above. Show Answer Correct Answer: B) Real GDP. 10. Which of the following is not true about the limitations of GDP as a measure of welfare? A) Household productions are not included in GDP. B) Health and life expectancy is not considered in GDP. C) Leisure time is not measured in GDP. D) Marketable transactions are not accounted in GDP. Show Answer Correct Answer: D) Marketable transactions are not accounted in GDP. 11. A large negative GDP gap implies: A) A sharply rising price level. B) A high rate of unemployment. C) Low rate of unemployment. D) An excess of imports over exports. Show Answer Correct Answer: B) A high rate of unemployment. 12. In which category of 2015 GDP would you find the following transaction. The Smith's purchase a new home built in Orlando in June of 2015 by a Japanese homebuilder. A) Does not count in GDP. B) Consumption. C) Investment. D) Government. Show Answer Correct Answer: C) Investment. 13. What does the "n" stand for in the GDP formula? A) Value of exports minus imports. B) Value of imports minus exports. C) Value of imports. D) None of above. Show Answer Correct Answer: A) Value of exports minus imports. 14. What do leakages from the circular flow of income refer to? A) Money flowing into the economic system. B) Money flowing out of the economic system. C) Government spending, exports, or investments. D) Income generated in parallel markets. Show Answer Correct Answer: B) Money flowing out of the economic system. 15. Which GDP is adjusted for inflation? A) Real. B) Current. C) Nominal. D) None of above. Show Answer Correct Answer: A) Real. 16. Measure of change in price over a period of time. A) Gross Domestic Product (GDP). B) Consumer Price Index (CPI). C) Producer Price Index (PPI). D) Gross National Product (GNP). Show Answer Correct Answer: B) Consumer Price Index (CPI). 17. The purchase of stocks and bonds is A) Not included in GDP as investment. B) Not included in GDP because these are intermediate goods. C) Included in GDP as investment. D) Included in GDP as a consumption expenditure. Show Answer Correct Answer: A) Not included in GDP as investment. 18. Market economies have been characterized by: A) Occasional instability of employment and price levels. B) Uninterrupted economic growth. C) Persistent full employment. D) Declining populations. Show Answer Correct Answer: A) Occasional instability of employment and price levels. 19. Eating at a restaurant is an example of ..... spending on ..... goods. A) Export; non-durable. B) Consumer; non-durable. C) Government; durable. D) Investment; durable. Show Answer Correct Answer: B) Consumer; non-durable. 20. If Mrs Ramirez taught for 35yrs at an elementary school and she retired, is she considered unemployed? A) Y-she doesn't have a job. B) N-she's not unemployed. C) N-she's no longer in the labor force. D) None of above. Show Answer Correct Answer: C) N-she's no longer in the labor force. 21. Which of the following would NOT increase a nation's Potential GDP? A) A better educated and trained labor force. B) The discovery of new natural resources. C) A plague that reduces the population. D) Investment in capital resources. Show Answer Correct Answer: C) A plague that reduces the population. 22. The value of exports of goods and services minus the value of imports of goods and services. A) Gross Domestic Product. B) Net exports of goods and services. C) Investment. D) Nominal GDP. Show Answer Correct Answer: B) Net exports of goods and services. 23. Demand-Pull inflation can be describes as too many ..... chasing too few ..... A) Jobs, workers. B) Consumers, producers. C) Dollars, goods. D) None of above. Show Answer Correct Answer: C) Dollars, goods. 24. Which type of unemployment is this:Danielle wants a higher salary and is beginning to think about leaving her current job and looking for another. A) Cyclical. B) Frictional. C) Not unemployed. D) Structural. Show Answer Correct Answer: C) Not unemployed. 25. Which of the following is an investment in capital resources/goods? A) Universities. B) New machinery. C) Skills training. D) Healthcare. Show Answer Correct Answer: B) New machinery. 26. During a contraction of the economy ..... A) GDP rises and unemployment falls. B) GDP falls and unemployment falls. C) GDP falls and unemployment rises. D) GDP rises and unemployment rises. Show Answer Correct Answer: C) GDP falls and unemployment rises. 27. The U.S. Government hired 10 Chinese-language experts to train U.S. Workers. A) GDP increases. B) GDP decreases. C) No change. D) None of above. Show Answer Correct Answer: B) GDP decreases. 28. According to Crash Course which of the following leads to higher standard of living A) Number of Jedis. B) Trade. C) Productivity. D) Amount of immigration. Show Answer Correct Answer: C) Productivity. 29. Measures wholesale price levels in the economy. A) Consumer Price Index (CPI). B) Producer Price Index (PPI). C) Gross Domestic Product (GDP. D) Gross National Product (GNP). Show Answer Correct Answer: B) Producer Price Index (PPI). 30. This is GDP that has not been adjusted for inflation and it is measured in current dollars. (also called current GDP) A) Per capita GDP. B) Real GNP. C) Nominal GDP. D) Real GDP. Show Answer Correct Answer: C) Nominal GDP. Next →Related QuizzesMacroeconomics QuizzesEconomics QuizzesGdp Quiz 2Gdp Quiz 3Gdp Quiz 4Gdp Quiz 5Gdp Quiz 6Gdp Quiz 7Gdp Quiz 8Gdp Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books