This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Gdp > Gdp – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Gdp Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Index numbers used to show price changes over time. (measures inflation) A) Per capita GDP. B) Unemployment rate. C) Consumer Price Index. D) Gross Domestic Product. Show Answer Correct Answer: C) Consumer Price Index. 2. Payment for car repairs A) Consumer spending. B) Government spending. C) Investment spending. D) Net exports of goods and services. Show Answer Correct Answer: A) Consumer spending. 3. Real GDP and nominal GDP differ because the real GDP: A) Excludes depreciation charges. B) Includes the economic effects of international trade. C) Is adjusted for changes in the volume of intermediate transactions. D) Has been adjusted for changes in the price level. Show Answer Correct Answer: D) Has been adjusted for changes in the price level. 4. This is GDP that has been adjusted for inflation and it allows countries to compare GDP from year to year. It is measured in constant dollars and is the most important measure of economic growth. A) Nominal GNP. B) Nominal GDP. C) Real GDP. D) Nominal per capita GDP. Show Answer Correct Answer: C) Real GDP. 5. Ireland has a GDP of $ 136, 900, 000, 000, and inflation rate of 2.7%, and a population of 4, 109, 000. What is the per capita GDP? A) $ 34, 337. B) $ 33, 311. C) $ 33, 317. D) $ 33, 435. Show Answer Correct Answer: C) $ 33, 317. 6. Intrinsic motivation is A) Intangible. B) A pat on the back. C) Verbal praise. D) All of these. Show Answer Correct Answer: D) All of these. 7. Based on the following equation, what does "Y" represent? Y = C+I+G+Xn A) GDP. B) Gross National Product. C) Inflation. D) Personal income. Show Answer Correct Answer: A) GDP. 8. Consumer spending A) Accounts for roughly 70% of GDP. B) Is one of 4 components of GDP. C) Could be a family going to the movies. D) All of these. Show Answer Correct Answer: D) All of these. 9. In the circular flow, we can actually talk about two markets. What are they? A) Natural market and stable market. B) Command market and free market. C) Resource market and product market. D) None of above. Show Answer Correct Answer: C) Resource market and product market. 10. In the United States economy, what do businesses buy from consumers? A) Services. B) Interest. C) Goods. D) Resources. Show Answer Correct Answer: D) Resources. 11. The highest recorded inflation rate in U.S. history was: A) 24%. B) 35%. C) 50%. D) 15%. Show Answer Correct Answer: A) 24%. 12. The Expenditures Approach of Calculating GDP includes ..... A) All spending on final products in the year. B) All Income made from selling all final goods. C) All costs on all products. D) The amount of people involved in production. Show Answer Correct Answer: A) All spending on final products in the year. 13. You buy a hamburger from a local fast food store A) Counts in GDP as investment. B) Not counted in GDP since it's considered an intermediate good. C) Not counted in GDP b/c it's a minor purchase. D) Counts in GDP as consumption. Show Answer Correct Answer: D) Counts in GDP as consumption. 14. Whose spending is included in GDP? A) Consumers. B) Businesses. C) Government. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. If you bought a new car made in USA, what part of GDP does it count for?GDP = C+I+G+(X-M) A) Investment Expenditures. B) Government Expenditures. C) Net Imports. D) Consumption Expenditures. Show Answer Correct Answer: D) Consumption Expenditures. 16. When calculating GDP, which of the following is subtracted? A) Export spending. B) Import spending. C) Investment by business. D) Government spending. Show Answer Correct Answer: B) Import spending. 17. A tax on an imported good A) Sin Tax. B) Excise Tax. C) Tariff. D) None of above. Show Answer Correct Answer: C) Tariff. 18. Gross Private Investment is defined as the purchase of A) Any financial asset only. B) Additions to inventories only. C) Financial assets and inventories only. D) The purchase of new capital goods and additions to inventories. Show Answer Correct Answer: D) The purchase of new capital goods and additions to inventories. 19. The U.S. Government hired 10 Chinese-language experts, residing in China, to train U.S. Workers remotely. A) GDP increases. B) GDP decreases. C) No change. D) None of above. Show Answer Correct Answer: B) GDP decreases. 20. The study of the economy as a whole ..... the "big picture" ..... is called A) Macronutrition. B) Mercantilism. C) Macroeconomics. D) Microeconomics. Show Answer Correct Answer: C) Macroeconomics. 21. What is used to measure standard of living? A) Market Basket Base Year. B) GDP per capita. C) Nominal GDP. D) Consumer Price Index. Show Answer Correct Answer: B) GDP per capita. 22. If US exports = 100$ and US imports = 200$ , then Net Exports = A) 300$. B) -300$. C) -100$. D) 100$. Show Answer Correct Answer: C) -100$. 23. If the MPC is .70 and gross investment increases by $ 3 billion, the equilibrium GDP will: A) Increase by $ 2.10 billion. B) Decrease by $ 4.29 billion. C) Increase by $ 4.29 billion. D) Increase by $ 10 billion. Show Answer Correct Answer: D) Increase by $ 10 billion. 24. There are three primary approaches to measuring national income. Which of the following is not one of them? A) Income method. B) Expenditure method. C) Output method. D) Neo-classical equilibrium. Show Answer Correct Answer: D) Neo-classical equilibrium. 25. Which causes United States GDP to increase? A) Japan buys government securities. B) Japan sells Japanese securities to the U.S. C) The United States buys more Japanese goods. D) The United States sells more goods to Japan. Show Answer Correct Answer: D) The United States sells more goods to Japan. 26. A person buys a refrigerator for their house A) Consumer spending. B) Government spending. C) Investment spending. D) Net exports of goods and services. Show Answer Correct Answer: A) Consumer spending. 27. A representative selection of approximately 80, 000 goods and services. A) Producer price index. B) Index number. C) Market basket. D) Base year. Show Answer Correct Answer: C) Market basket. 28. Why do firms need to purchase the productive resources in the factor market? A) To produce labor. B) To produce goods and services. C) To increase demand. D) None of the above. Show Answer Correct Answer: B) To produce goods and services. 29. Which of the following is likely the best indicator of economic health? A) Nominal GDP is $ 18 trillion. B) Real GDP grew by 3 percent this year. C) Real GDP is $ 18 trillion. D) Nominal GDP grew by 3 percent this year. Show Answer Correct Answer: B) Real GDP grew by 3 percent this year. 30. Given the annual rate of economic growth, the "rule of 70" allows one to: A) Determine the accompanying rate of inflation. B) Calculate the number of years required for real GDP to double. C) Calculate the size of the GDP gap. D) Determine the growth rate of per capita GDP. Show Answer Correct Answer: B) Calculate the number of years required for real GDP to double. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesGdp Quiz 1Gdp Quiz 3Gdp Quiz 4Gdp Quiz 5Gdp Quiz 6Gdp Quiz 7Gdp Quiz 8Gdp Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books