Gross Domestic Product (GDP)

1. What does GDP stand for?

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

2. Inflation-adjusted GDP is also known as:

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

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

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

4. GDP can be calculated by summing:

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

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

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

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

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

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

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

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

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

10. How does government spending impact GDP?

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

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