Gross Domestic Product (GDP)

1. What does GDP stand for?

A) Global Development Program
B) Government Debt Percentage
C) General Distribution Process
D) Gross Domestic Product

2. Inflation-adjusted GDP is also known as:

A) Per capita GDP
B) Real GDP
C) Nominal GDP
D) Potential GDP

3. Which sector of the economy includes farming and mining?

A) Primary sector
B) Quaternary sector
C) Tertiary sector
D) Secondary sector

4. GDP can be calculated by summing:

A) Consumption + Investment + Government Spending + Net Exports
B) Consumption + Savings + Exports - Imports
C) Investment + Taxes - Imports + Exports
D) Income + Consumption + Net Exports - Government Spending

5. What is the largest component of GDP in most economies?

A) Government spending
B) Consumption
C) Investments
D) Net exports

6. What is the difference between GDP and GNP?

A) GDP includes government spending, while GNP does not
B) GDP measures economic output within a country, while GNP measures output by country's residents worldwide
C) GDP is adjusted for inflation, while GNP is not
D) GDP measures wealth, while GNP measures income

7. Which component of GDP reflects the value of exports minus imports?

A) Government spending
B) Investments
C) Consumption
D) Net exports

8. When GDP growth rate is negative for two consecutive quarters, it is known as:

A) Expansion
B) Recession
C) Stagnation
D) Depression

9. Which organization releases GDP data for the United States?

A) IMF
B) World Bank
C) Federal Reserve
D) Bureau of Economic Analysis (BEA)

10. How does government spending impact GDP?

A) Decreases GDP by reducing consumer spending
B) Negatively impacts GDP by raising taxes
C) Increases GDP through direct expenditures
D) Has no impact on GDP

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