This quiz works best with JavaScript enabled. Home > Macroeconomics > Gdp > Gdp – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Gdp Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The highest recorded inflation rate in U.S. history was: A) 15%. B) 24%. C) 35%. D) 50%. Show Answer Correct Answer: B) 24%. 2. 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. 3. You buy a hamburger from a local fast food store A) Counts in GDP as consumption. B) Counts in GDP as investment. C) Not counted in GDP b/c it's a minor purchase. D) Not counted in GDP since it's considered an intermediate good. Show Answer Correct Answer: A) Counts in GDP as consumption. 4. 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. 5. If you bought a new car made in USA, what part of GDP does it count for?GDP = C+I+G+(X-M) A) Consumption Expenditures. B) Investment Expenditures. C) Government Expenditures. D) Net Imports. Show Answer Correct Answer: A) Consumption Expenditures. 6. When calculating GDP, which of the following is subtracted? A) Government spending. B) Export spending. C) Import spending. D) Investment by business. Show Answer Correct Answer: C) Import spending. 7. A tax on an imported good A) Sin Tax. B) Excise Tax. C) Tariff. D) None of above. Show Answer Correct Answer: C) Tariff. 8. 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. 9. 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. 10. The study of the economy as a whole ..... the "big picture" ..... is called A) Microeconomics. B) Mercantilism. C) Macroeconomics. D) Macronutrition. Show Answer Correct Answer: C) Macroeconomics. 11. What is used to measure standard of living? A) GDP per capita. B) Nominal GDP. C) Consumer Price Index. D) Market Basket Base Year. Show Answer Correct Answer: A) GDP per capita. 12. If US exports = 100$ and US imports = 200$ , then Net Exports = A) 100$. B) 300$. C) -100$. D) -300$. Show Answer Correct Answer: C) -100$. 13. If the MPC is .70 and gross investment increases by $ 3 billion, the equilibrium GDP will: A) Increase by $ 10 billion. B) Decrease by $ 4.29 billion. C) Increase by $ 2.10 billion. D) Increase by $ 4.29 billion. Show Answer Correct Answer: A) Increase by $ 10 billion. 14. 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. 15. Which causes United States GDP to increase? A) Japan buys government securities. B) The United States sells more goods to Japan. C) Japan sells Japanese securities to the U.S. D) The United States buys more Japanese goods. Show Answer Correct Answer: B) The United States sells more goods to Japan. 16. 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. 17. A representative selection of approximately 80, 000 goods and services. A) Producer price index. B) Market basket. C) Base year. D) Index number. Show Answer Correct Answer: B) Market basket. 18. 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. 19. Which of the following is likely the best indicator of economic health? A) Real GDP is $ 18 trillion. B) Real GDP grew by 3 percent this year. C) Nominal 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. 20. Given the annual rate of economic growth, the "rule of 70" allows one to: A) Determine the accompanying rate of inflation. B) Calculate the size of the GDP gap. C) Calculate the number of years required for real GDP to double. D) Determine the growth rate of per capita GDP. Show Answer Correct Answer: C) Calculate the number of years required for real GDP to double. ← PreviousNext →Related QuizzesMacroeconomics QuizzesGdp Quiz 1Gdp Quiz 2Gdp Quiz 4Gdp Quiz 5Gdp Quiz 6Gdp Quiz 7Gdp Quiz 8Gdp Quiz 9Gdp Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books