This quiz works best with JavaScript enabled. Home > Macroeconomics > Gdp > Gdp – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Gdp Quiz 4 (20 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 increases. B) US GDP decreases. C) No change. D) US Net exports increases. Show Answer Correct Answer: B) 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) The intermediate value may have different stages. B) Intermediate value cannot be calculated. C) Intermediate value is calculated into GNP. D) Intermediate value is included in the value of the final good. Show Answer Correct Answer: D) 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 helped. B) Lenders hurt, borrowers hurt. C) Lenders helped, borrowers hurt. D) Lenders helped, borrowers helped. Show Answer Correct Answer: A) 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: B) Exports-Imports. 10. Which of the following is NOT measured in GDP? A) Illegal narcotics sales. B) Running a plumbing business. C) Selling produce. D) Buying an American-made car. Show Answer Correct Answer: A) Illegal narcotics sales. 11. Which of these items is not a durable good? A) House. B) Car. C) Lawn mower. D) Gasoline. Show Answer Correct Answer: D) 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) Highest. B) Lowest. C) Dumbest. D) Best smelling. Show Answer Correct Answer: A) Highest. 14. In the United States, the largest component of GDP is made up of A) Consumer spending. B) Business investment. C) Government spending. D) Exports. 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 national product. B) Net domestic product. C) Gross national product. D) Disposable income. Show Answer Correct Answer: B) Net domestic product. 17. GDP per capita is equivalent to A) Disposable income. B) GNP. C) Average salary. D) The expenditure approach. Show Answer Correct Answer: C) 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) Full employment. B) Economic growth. C) Price stability. D) Unemployment. Show Answer Correct Answer: B) Economic growth. ← PreviousNext →Related QuizzesMacroeconomics QuizzesGdp Quiz 1Gdp Quiz 2Gdp Quiz 3Gdp Quiz 5Gdp Quiz 6Gdp Quiz 7Gdp Quiz 8Gdp Quiz 9Gdp Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books