This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Gdp > Gdp – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Gdp Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does Xn in the GDP formula represent? A) Net Imports. B) Net Exports. C) Taxes. D) None of the Above. Show Answer Correct Answer: B) Net Exports. 2. Which of the following GDP categories is the only one that can be negative in value? A) Consumption. B) Government. C) Net exports. D) All categories can be negative in value. Show Answer Correct Answer: C) Net exports. 3. The U.S. Government hired 10 Chinese-language experts, from a Chinese company based in China, to train U.S. Workers. A) US GDP decreases. B) No change. C) US GDP increases. D) US Net exports increases. Show Answer Correct Answer: A) US GDP decreases. 4. What does the "I" stand for in the expenditures model equation? A) Intermediate goods. B) Inclusive demand. C) Investments. D) Initial Supply. Show Answer Correct Answer: C) Investments. 5. Why doesn't GDP count intermediate goods? A) Intermediate value is included in the value of the final good. B) Intermediate value cannot be calculated. C) The intermediate value may have different stages. D) Intermediate value is calculated into GNP. Show Answer Correct Answer: A) Intermediate value is included in the value of the final good. 6. Activities which are purposely hidden from the view of the government in order to avoid taxes is known as ..... A) Underground Economic Activities. B) Household Production. C) Economic Activities. D) All of the options. Show Answer Correct Answer: A) Underground Economic Activities. 7. Which one of these correctly describes how lenders and borrowers are affected by inflation? A) Lenders hurt, borrowers hurt. B) Lenders helped, borrowers hurt. C) Lenders hurt, borrowers helped. D) Lenders helped, borrowers helped. Show Answer Correct Answer: C) Lenders hurt, borrowers helped. 8. Consumer Spending + Investment(Business) Spending + ..... + Net Exports = A) Government Spending. B) Stocks and Bonds. C) Household Spending. D) None of above. Show Answer Correct Answer: A) Government Spending. 9. What is to formula for calculating net exports? A) Exports-Imports. B) Exports + Imports. C) Exports x Population. D) Exports / Inflation %. Show Answer Correct Answer: A) Exports-Imports. 10. Which of the following is NOT measured in GDP? A) Illegal narcotics sales. B) Buying an American-made car. C) Selling produce. D) Running a plumbing business. Show Answer Correct Answer: A) Illegal narcotics sales. 11. Which of these items is not a durable good? A) House. B) Lawn mower. C) Gasoline. D) Car. Show Answer Correct Answer: C) Gasoline. 12. Remember:there are four "pieces" of GDP:C, I, G, and Nx. When the owner of a snow cone business buys more ice for his machine, which piece is affected? A) C. B) I. C) G. D) (Ex-Im). Show Answer Correct Answer: B) I. 13. The GDP of the United States is the ..... in the entire world at >$ 21 trillion. A) Lowest. B) Dumbest. C) Highest. D) Best smelling. Show Answer Correct Answer: C) Highest. 14. In the United States, the largest component of GDP is made up of A) Consumer spending. B) Government spending. C) Exports. D) Business investment. Show Answer Correct Answer: A) Consumer spending. 15. Which of the following is considered a cause of inflation? A) Wages go down. B) Producers raise prices to meet higher costs. C) There is not enough money in the economy. D) Demand is less than supply. Show Answer Correct Answer: B) Producers raise prices to meet higher costs. 16. The net value of GDP after deducting depreciation from GDP is A) Net domestic product. B) Net national product. C) Disposable income. D) Gross national product. Show Answer Correct Answer: A) Net domestic product. 17. GDP per capita is equivalent to A) The expenditure approach. B) Average salary. C) GNP. D) Disposable income. Show Answer Correct Answer: B) Average salary. 18. The market value of all the final goods and services produced within a country in a given time period. A) Gross Domestic Product. B) Net exports of goods and services. C) Nominal GDP. D) Real GDP. Show Answer Correct Answer: A) Gross Domestic Product. 19. What the definition of deflation? A) Decrease in the average price of goods and services. B) Occurs when the price of goods and services rise. C) Increase in prices. D) I don't know. Show Answer Correct Answer: A) Decrease in the average price of goods and services. 20. C+I+G+(X-M) is used to measure which of the following? A) Economic growth. B) Full employment. C) Price stability. D) Unemployment. Show Answer Correct Answer: A) Economic growth. 21. ..... are common products that consumers buy in a month. (used for CPI) A) Inflation. B) Market basket. C) Monetary policy. D) Fiscal policies. Show Answer Correct Answer: B) Market basket. 22. This is the most democratic form of Economic system. A) Market economy. B) Market value. C) Income Approach. D) Value Intermediate Product. Show Answer Correct Answer: A) Market economy. 23. A knitting factory worker who loses her job when the factory is sold and converted to a high-tech computer lab is an example of A) Structural unemployment. B) Cyclical unemployment. C) Frictional unemployment. D) Seasonal unemployment. Show Answer Correct Answer: A) Structural unemployment. 24. All of the following account for the growing income gap EXCEPT A) A shift from married-couple families to single-parent families. B) A shift in employment from the manufacturing to the service industry. C) Lessening wage advantages for the well educated. D) A decline in unions. Show Answer Correct Answer: C) Lessening wage advantages for the well educated. 25. What is GDP divided by the size of the population? A) Nominal GDP. B) GDP extra. C) The labor force participation rate. D) GDP per capita. Show Answer Correct Answer: D) GDP per capita. 26. Which is included in GDP? A) Final goods. B) Used goods. C) Illegal activity. D) Non-market transactions. Show Answer Correct Answer: A) Final goods. 27. Total market value of all final goods and services produced annually in a country is called A) Gross national product. B) Gross domestic product. C) Gross domestic product & gross national product. D) Real gross domestic product. Show Answer Correct Answer: B) Gross domestic product. 28. A teacher buys a present for a friend A) Consumer spending. B) Government spending. C) Investment spending. D) Net exports of goods and services. Show Answer Correct Answer: A) Consumer spending. 29. The value of output produced by factors of production located within a country A) Economics. B) Foreign exchange. C) Gross domestic product. D) Expenditure approach. Show Answer Correct Answer: C) Gross domestic product. 30. What is one of the four factors of production? A) Natural Resources. B) Entrepreneuership. C) Capital Resources/Goods. D) All of these choices. Show Answer Correct Answer: D) All of these choices. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesGdp Quiz 1Gdp Quiz 2Gdp Quiz 4Gdp Quiz 5Gdp Quiz 6Gdp Quiz 7Gdp Quiz 8Gdp Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books