Gdp Quiz 5 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. ..... are common products that consumers buy in a month. (used for CPI)

Correct Answer: A) Market basket.

2. This is the most democratic form of Economic system.

Correct Answer: C) Market economy.

3. 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

Correct Answer: B) Structural unemployment.

4. All of the following account for the growing income gap EXCEPT

Correct Answer: C) Lessening wage advantages for the well educated.

5. What is GDP divided by the size of the population?

Correct Answer: B) GDP per capita.

6. Which is included in GDP?

Correct Answer: C) Final goods.

7. Total market value of all final goods and services produced annually in a country is called

Correct Answer: D) Gross domestic product.

8. A teacher buys a present for a friend

Correct Answer: A) Consumer spending.

9. The value of output produced by factors of production located within a country

Correct Answer: D) Gross domestic product.

10. What is one of the four factors of production?

Correct Answer: D) All of these choices.

11. Which national income measurement approach calculates GDP by aggregating value added at each stage of production?

Correct Answer: B) Output approach.

12. Which of the following equations represents equilibrium?

Correct Answer: C) S+T+M = G+X+I.

13. Nation with the 2nd largest GDP in the world

Correct Answer: B) China.

14. Net exports is equal to ..... minus imports.

Correct Answer: A) Exports.

15. Which is often an effect of a high literacy rate?

Correct Answer: D) A higher standard of living.

16. Inflation initiated by increases in wages or other resource prices is labeled:

Correct Answer: C) Cost-push inflation.

17. Unemployment involving a mismatch of the skills of unemployed workers and the skills required for available jobs is called:

Correct Answer: B) Structural unemployment.

18. When GDP falls for two or more consecutive quarters .....

Correct Answer: B) The economy is in recession.

19. A rise in general price levels or too many dollars chasing too few goods are definitions of

Correct Answer: C) Inflation.

20. Assume the MPC is 2/3. If investment spending increases by $ 2 billion, the level of GDP will increase by:

Correct Answer: C) $ 6 billion.