This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Gdp > Gdp – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Gdp Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which national income measurement approach calculates GDP by aggregating value added at each stage of production? A) Income approach. B) Output approach. C) Expenditure approach. D) None of the above. Show Answer Correct Answer: B) Output approach. 2. Which of the following equations represents equilibrium? A) M+T+I = G+X+S. B) G+T+S = X+M+I. C) T+X+I = G+T+S. D) S+T+M = G+X+I. Show Answer Correct Answer: D) S+T+M = G+X+I. 3. Nation with the 2nd largest GDP in the world A) China. B) Germany. C) USA. D) Japan. Show Answer Correct Answer: A) China. 4. Net exports is equal to ..... minus imports. A) Population. B) Exports. C) Productivity. D) Services. Show Answer Correct Answer: B) Exports. 5. Which is often an effect of a high literacy rate? A) Higher illiteracy rate. B) Lower education levels. C) A lower standard of living. D) A higher standard of living. Show Answer Correct Answer: D) A higher standard of living. 6. Inflation initiated by increases in wages or other resource prices is labeled: A) Demand-pull inflation. B) Demand-push inflation. C) Cost-push inflation. D) Cost-pull inflation. Show Answer Correct Answer: C) Cost-push inflation. 7. Unemployment involving a mismatch of the skills of unemployed workers and the skills required for available jobs is called: A) Structural unemployment. B) Cyclical unemployment. C) Frictional unemployment. D) Seasonal unemployment. Show Answer Correct Answer: A) Structural unemployment. 8. When GDP falls for two or more consecutive quarters ..... A) The economy is booming. B) The economy is in recession. C) The economy is expanding. D) None of above. Show Answer Correct Answer: B) The economy is in recession. 9. A rise in general price levels or too many dollars chasing too few goods are definitions of A) Recession. B) Inflation. C) Unemployment. D) Welfare. Show Answer Correct Answer: B) Inflation. 10. Assume the MPC is 2/3. If investment spending increases by $ 2 billion, the level of GDP will increase by: A) $ 6 billion. B) $ 3 billion. C) $ 2/3 billion. D) $ 2 billion. Show Answer Correct Answer: A) $ 6 billion. 11. The unemployment rate does not account for which two types of people? A) Discouraged workers (hidden unemployed) and those employed. B) Full time carers and those in school. C) Retirees and those in prison. D) Discouraged workers (hidden unemployed) and underemployed. Show Answer Correct Answer: D) Discouraged workers (hidden unemployed) and underemployed. 12. The value of output produced by a country's citizens regardless of where the output is. A) Social science. B) Gross national product. C) Inflation. D) Gross domestic product. Show Answer Correct Answer: B) Gross national product. 13. Which of the following would not be counted in GDP? A) A widget produced in Tennessee by a U.S. company. B) A widget produced in Arkansas by a Chinese company. C) A widget produced in Germany by a U.S. company. D) A widget produced in Missouri by a Canadian company. Show Answer Correct Answer: C) A widget produced in Germany by a U.S. company. 14. Illegal goods and services that are produced are ..... A) Included in the consumption category of GDP. B) Not counted in GDP. C) Included as an estimate in GDP. D) Included in GDP when the authorities can prove the amount. Show Answer Correct Answer: B) Not counted in GDP. 15. Consumption expenditures are defined as spending on goods and services by A) Households, businesses and government. B) Businesses and government. C) Households. D) Households and businesses. Show Answer Correct Answer: C) Households. 16. If the Nominal interest rate was 12% and inflation was 3%; what was the real interest rate? A) 12%. B) 15%. C) 9%. D) None of above. Show Answer Correct Answer: C) 9%. 17. The term discouraged worker implies A) That you've been discouraged by the progress that you've made at your current job. B) That you've been discouraged by the chance to get a job so you've given up looking for work. C) Neither of these. D) None of above. Show Answer Correct Answer: B) That you've been discouraged by the chance to get a job so you've given up looking for work. 18. If a company lays off workers when the business cycle is going up (the economy is booming), what kinds of goods to this company most likely produce? A) Normal goods. B) Inferior goods. C) Technological goods. D) Capital goods. Show Answer Correct Answer: B) Inferior goods. 19. If the GDP deflator is equal to 105, it means that ..... A) GDP has decreased 5 percent. B) GDP has increased 105 percent. C) The inflation rate is 5 percent. D) The inflation rate is 105 percent. Show Answer Correct Answer: C) The inflation rate is 5 percent. 20. Something you can see and feel. A) Goods. B) Resources. C) Labor. D) Value. Show Answer Correct Answer: A) Goods. 21. A Japanese automobile assembled in the United States counts towards ..... A) The GNP of the U.S. B) The GDP of the U.S. C) The GDP of Japan. D) None of above. Show Answer Correct Answer: B) The GDP of the U.S. 22. What does real GDP mean? A) GDP is calculated using current prices. B) GDP is calculated only with goods and services costing less than $ 10. C) GDP is calculated taking inflation into account. D) GDP is calculated without government spending. Show Answer Correct Answer: C) GDP is calculated taking inflation into account. 23. It deals with the economic behavior of the whole economy A) GNP. B) Macroeconomics. C) Microeconomics. D) GDP. Show Answer Correct Answer: B) Macroeconomics. 24. Which country is at the top of the 'World Happiness Report' rankings? A) Iceland. B) Denmark. C) Finland. D) Sweden. Show Answer Correct Answer: C) Finland. 25. The production of durable goods varies more than the production of nondurable goods because: A) Durable purchases are non-postponable. B) Producers of durable are highly competitive. C) Durable purchases are postponable. D) The producers of nondurables have monopoly power. Show Answer Correct Answer: C) Durable purchases are postponable. 26. In this phase of the business cycle, GDP grows and unemployment shrinks. A) Trough. B) Peak. C) Expansion. D) Contraction. Show Answer Correct Answer: C) Expansion. 27. Which of the following is not a type of unemployment? A) Structural. B) Clinical. C) Frictional. D) Cyclical. Show Answer Correct Answer: B) Clinical. 28. All of the following flow among households, businesses, and the government in American economy EXCEPT: A) Resources. B) Laws. C) Goods and services. D) Money. Show Answer Correct Answer: B) Laws. 29. What is not a criterion used to measure welfare in HDI? A) Education. B) Opportunity. C) Standard of living. D) Health and life expectancy. Show Answer Correct Answer: B) Opportunity. 30. Cyclical unemployment results from: A) A deficiency of aggregate spending. B) The decreasing relative importance of goods and the increasing relative importance of services in the U.S. economy. C) The everyday dynamics of a free labor market. D) Technological change. Show Answer Correct Answer: A) A deficiency of aggregate spending. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesGdp Quiz 1Gdp Quiz 2Gdp Quiz 3Gdp Quiz 5Gdp Quiz 6Gdp Quiz 7Gdp Quiz 8Gdp Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books