This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Gdp > Gdp – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Gdp Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... GDP is the total value of all production in one year measured at current prices. ..... GDP is the total value of all production in one year adjusted for inflation. A) Real, per capita. B) Real, nominal. C) Nominal, real. D) Nominal, per capita. Show Answer Correct Answer: C) Nominal, real. 2. Old Mr. Davidson collects a Social Security check every month. Is this included in government spending? A) Yes-Government spending. B) Yes-Consumer Spending. C) No-Intermediate Goods. D) No-Purely financial Transaction. Show Answer Correct Answer: D) No-Purely financial Transaction. 3. A balanced budget is best described as which of the following A) Revenue is less than expenses. B) Expenses is greater than revenue. C) Revenue is greater than expenses. D) Revenue is equal to expenses. Show Answer Correct Answer: D) Revenue is equal to expenses. 4. Equilibrium in the loanable funds market determines the: A) Expected interest rate. B) Nominal interest rate. C) Real interest rate. D) Current interest rate. Show Answer Correct Answer: C) Real interest rate. 5. Which of the following goods is included in GDP? A) Dresses. B) Screws used in a cruise missile. C) Flour for making bread. D) Cloth for making dresses. Show Answer Correct Answer: A) Dresses. 6. Inflation means that: A) All prices are rising, but at different rates. B) All prices are rising and at the same rate. C) Prices in the aggregate are rising, although some particular prices may be falling. D) Real incomes are rising. Show Answer Correct Answer: C) Prices in the aggregate are rising, although some particular prices may be falling. 7. The calculation of GDP would include A) The income of a high school English teacher. B) The price of the steel used to build a new hotel. C) The monetary value of someone babysitting in exchange for a room. D) Profits on the sale of a 25-year-old house. Show Answer Correct Answer: A) The income of a high school English teacher. 8. If the government hires a private company to fix a road, then ..... A) GDP decreases. B) GOP doesn't change b/c taxpayers are paying the bill. C) GDP increases. D) GDP doesn't change b/c the government isn't building new roads. Show Answer Correct Answer: C) GDP increases. 9. If nominal GDP increases, this means: A) We must be producing more goods and services. B) We must be experiencing inflation. C) Either there has been inflation or we are producing more. D) The value of the currency has fallen. Show Answer Correct Answer: C) Either there has been inflation or we are producing more. 10. Suppose that in a particular country, nominal gross domestic product (GDP) grew 8 percent, and the GDP deflator increased by 10 percent. The country's growth rate of Real GDP would be approximately equal to A) 0.8%. B) -2%. C) -8%. D) 2%. Show Answer Correct Answer: B) -2%. 11. Which type of unemployment is this:Stephen has been desparately trying to find a job, but because of the stock market crash no one is hiring. A) Not unemployed. B) Structural. C) Cyclical. D) Frictional. Show Answer Correct Answer: C) Cyclical. 12. A British family purchased a one year subscription to Netflix, a U.S. based company. A) GDP increases. B) GDP decreases. C) No change. D) None of above. Show Answer Correct Answer: A) GDP increases. 13. Each individual on food stamps in Delaware can receive up to $ 194 a month. Is this included in GDP? A) Yes-Government spending. B) No-Intermediate Goods. C) Yes-Consumer Spending. D) No-Government payment to individuals (not included). Show Answer Correct Answer: D) No-Government payment to individuals (not included). 14. Which of the following is an investment in human capital? A) Buying new computers. B) Paving roads. C) Purchasing new textbooks. D) Education and healthcare. Show Answer Correct Answer: D) Education and healthcare. 15. "Too much money chasing too few goods" best describes: A) The GDP gap. B) Demand-pull inflation. C) The inflation premium. D) Cost-push inflation. Show Answer Correct Answer: B) Demand-pull inflation. 16. If GDP grew 3% in 2010, 2.2% in 2011 and 2.5% in 2012, then what is the average annual growth rate over this period? A) 5%. B) -2.2%. C) 4%. D) 2.6%. Show Answer Correct Answer: D) 2.6%. 17. In a small economy, consumption spending in 2012 is $ 6000, government spending is $ 1200, gross investment is $ 1500, exports are $ 2000, net investment is $ 300, and imports are $ 1000. What is gross domestic product in 2012? A) $ 7700. B) $ 10 000. C) $ 10 700. D) $ 9 700. Show Answer Correct Answer: D) $ 9 700. 18. The total dollar value of all final goods and services produced within the country's border in a given year after inflation is taken out of the data. A) Nominal GDP. B) Real GDP. C) Gross GDP. D) GDP/capita. Show Answer Correct Answer: B) Real GDP. 19. Which of the following is the best measurement of a country's living standard? A) Nominal GDP. B) Real GDP per capita. C) GDP per capita. D) Real GDP. Show Answer Correct Answer: B) Real GDP per capita. 20. Calculate GDP economic growth over the following time period.January 2017:10, 000January 2018:15, 000 A) 20%. B) 15%. C) .5%. D) 50%. Show Answer Correct Answer: D) 50%. 21. If real GDP increases, we know for sure that: A) Prices have remained constant. B) Prices have risen. C) Output has risen. D) Prices have risen but output has remained constant. Show Answer Correct Answer: C) Output has risen. 22. The total dollar value of all final goods and services produced within the country's border in a given year. This measure includes inflation. A) Gross Income Measure. B) Gross Outcome Measure. C) Gross National Product. D) Nominal GDP. Show Answer Correct Answer: D) Nominal GDP. 23. What is an example of human capital? A) A country's standard of living. B) The cash a business has to spend. C) The workers of a business or country. D) The buildings, equipment, and property of a business. Show Answer Correct Answer: C) The workers of a business or country. 24. The cost of a pair of earrings is $ 36.99. The cost in 1983 was $ 21.95. What is the CPI? A) 168.5. B) 168.8. C) 168.4. D) 168.7. Show Answer Correct Answer: A) 168.5. 25. The total amount of goods and services that all of the people in the economy are willing to buy A) Aggregate supply. B) Aggregate demand. C) Demand. D) Supply. Show Answer Correct Answer: B) Aggregate demand. 26. If a product is produced by not purchased, it A) Is not counted in GDP. B) Is counted in GDP. C) Lowers GDP. D) Is added to GDP, then subtracted at the end of the year. Show Answer Correct Answer: B) Is counted in GDP. 27. The Income 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 ammount of people involved in production. Show Answer Correct Answer: B) All Income made from selling all final goods. 28. Macroeconomics deals with A) Focuses on the individual and businesses. B) Looks at the big picture and looks at teh study of measurement of how healthy the economy is. C) Focuses on fundamental principles of economics. D) Does not involve the government. Show Answer Correct Answer: B) Looks at the big picture and looks at teh study of measurement of how healthy the economy is. 29. What is the total value of all final goods and services produced in the economy calculated using the prices of a selected base year? A) Real GDP. B) Nominal GDP. C) GDP per capita. D) Real GDP per capita. Show Answer Correct Answer: A) Real GDP. 30. An index that measures the prices of a market basket of goods that typical consumers purchase. A) Deflation. B) Federal Reserve. C) Consumer Price Index. D) Bank. Show Answer Correct Answer: C) Consumer Price Index. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesGdp Quiz 1Gdp Quiz 2Gdp Quiz 3Gdp Quiz 4Gdp Quiz 5Gdp Quiz 6Gdp Quiz 7Gdp Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books