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Multiple Choice Quiz
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1
Gross Domestic Product is a measure of:
A)The quantity of output produced in one year
B)The dollar value of the output produced divided by population
C)The dollar value of output produced domestically and by U.S. companies abroad
D)The dollar value of output produced domestically within a given time period
2
Which measurement is used to make global comparisons:
A)GNP
B)GDP
C)GDP per capita
D)Real GDP
3
Which of the following is included in GDP?
A)The sale of Goodyear tires to General Motors
B)The value of parental child rearing services
C)The sale of new homes
D)The dollar value of the underground economy
4
Which of the following is an intermediate good?
A)Goodyear sells tires to consumers
B)Dell produces and sells home desktop computers
C)The sale of flour to consumers at grocery stores
D)A glass company sells glass plate for housing construction
5
Real GDP is a more accurate measure of economic growth than nominal GDP because:
A)Real GDP can increase due to price increases
B)Nominal GDP can rise due to price increases or output increases
C)Nominal GDP is adjusted for inflation
D)Real GDP is divided by the population
6
Real GDP is:
A)The dollar value of nominal GDP
B)Nominal GDP divided by population
C)Identical to nominal GDP
D)Nominal GDP divided by a price index
7
If real GDP increases it means:
A)That prices have increased
B)That the quantity of output has increased
C)That either the quantity of output or prices have increased
D)None of the above
8
Inflation is:
A)An increase in the average price level
B)A decrease in the output of a country
C)An increase in the output of a country
D)An increase in both inflation and unemployment at the same time
9
An example of business investment is:
A)The purchase of a stock or bond
B)A business loan
C)The purchase of new fry cookers by McDonalds
D)None of the above
10
Net exports:
A)Is the value of imports minus exports
B)Are positive if the country is running a trade deficit
C)Equals the dollar value of imports
D)Is the value of exports minus imports
11
The value of GDP:
A)Can be determined by adding up the spending of market participants
B)Can be deduced from consumption spending
C)Is equal to net domestic product
D)Can be determined by the amount of output produced
12
Total spending by the following components: C + I + G + (X - M), equals:
A)Real GDP
B)Nominal GDP
C)Net Domestic Product
D)National Income
13
Which is included in national income?
A)Consumer spending
B)Interest
C)Net exports
D)Government spending
14
GDP can be calculated by:
A)The total spending on the final goods and services
B)The total amount earned from producing the final goods and services
C)Adding up the dollar value of all goods produced in the US in one year
D)All of the above
15
The social index shows:
A)A rising standard of living in the United States
B)A deterioration of the social health in the United States since 1973
C)How income is distributed in the United States
D)None of the above





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