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GDP and Its Components

Description: This quiz will test your understanding of the concept of Gross Domestic Product (GDP) and its components.
Number of Questions: 15
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Tags: gdp components of gdp national income
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What is the full form of GDP?

  1. Gross Domestic Product

  2. Gross Domestic Profit

  3. Gross Domestic Price

  4. Gross Domestic Production

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Correct Option: A
Explanation:

GDP stands for Gross Domestic Product.

Which of the following is NOT a component of GDP?

  1. Consumption

  2. Investment

  3. Government Spending

  4. Exports

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Correct Option: D
Explanation:

Exports are not a component of GDP, as they are already included in Consumption, Investment, and Government Spending.

The formula for calculating GDP is:

  1. GDP = Consumption + Investment + Government Spending + Exports

  2. GDP = Consumption + Investment + Government Spending - Exports

  3. GDP = Consumption + Investment - Government Spending + Exports

  4. GDP = Consumption - Investment + Government Spending + Exports

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Correct Option: A
Explanation:

The formula for calculating GDP is GDP = Consumption + Investment + Government Spending + Exports.

Which of the following is the largest component of GDP in most countries?

  1. Consumption

  2. Investment

  3. Government Spending

  4. Exports

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Correct Option: A
Explanation:

Consumption is the largest component of GDP in most countries.

What is the difference between nominal GDP and real GDP?

  1. Nominal GDP includes the effects of inflation, while real GDP does not.

  2. Real GDP includes the effects of inflation, while nominal GDP does not.

  3. Nominal GDP is calculated using current prices, while real GDP is calculated using constant prices.

  4. Real GDP is calculated using current prices, while nominal GDP is calculated using constant prices.

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Correct Option: C
Explanation:

Nominal GDP is calculated using current prices, while real GDP is calculated using constant prices.

Which of the following is a measure of the overall price level in an economy?

  1. GDP

  2. CPI

  3. PPI

  4. PCE

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Correct Option: B
Explanation:

CPI stands for Consumer Price Index, which is a measure of the overall price level in an economy.

What is the relationship between GDP and economic growth?

  1. GDP and economic growth are the same thing.

  2. GDP is a measure of economic growth.

  3. Economic growth is a measure of GDP.

  4. GDP and economic growth are not related.

Show answer
Correct Option: B
Explanation:

GDP is a measure of economic growth.

Which of the following is a measure of the value of all final goods and services produced in an economy in a given period of time?

  1. GDP

  2. GNP

  3. NNP

  4. NI

Show answer
Correct Option: A
Explanation:

GDP stands for Gross Domestic Product, which is a measure of the value of all final goods and services produced in an economy in a given period of time.

Which of the following is a measure of the value of all final goods and services produced in an economy in a given period of time, regardless of where the factors of production are located?

  1. GDP

  2. GNP

  3. NNP

  4. NI

Show answer
Correct Option: B
Explanation:

GNP stands for Gross National Product, which is a measure of the value of all final goods and services produced in an economy in a given period of time, regardless of where the factors of production are located.

Which of the following is a measure of the value of all final goods and services produced in an economy in a given period of time, after deducting depreciation?

  1. GDP

  2. GNP

  3. NNP

  4. NI

Show answer
Correct Option: C
Explanation:

NNP stands for Net National Product, which is a measure of the value of all final goods and services produced in an economy in a given period of time, after deducting depreciation.

Which of the following is a measure of the value of all final goods and services produced in an economy in a given period of time, after deducting depreciation and indirect business taxes?

  1. GDP

  2. GNP

  3. NNP

  4. NI

Show answer
Correct Option: D
Explanation:

NI stands for National Income, which is a measure of the value of all final goods and services produced in an economy in a given period of time, after deducting depreciation and indirect business taxes.

What is the difference between GDP and GNP?

  1. GDP includes the value of goods and services produced by foreign-owned companies located in the country, while GNP does not.

  2. GNP includes the value of goods and services produced by foreign-owned companies located in the country, while GDP does not.

  3. GDP includes the value of goods and services produced by domestic companies located abroad, while GNP does not.

  4. GNP includes the value of goods and services produced by domestic companies located abroad, while GDP does not.

Show answer
Correct Option: D
Explanation:

GNP includes the value of goods and services produced by domestic companies located abroad, while GDP does not.

What is the difference between NNP and NI?

  1. NNP includes the value of depreciation, while NI does not.

  2. NI includes the value of depreciation, while NNP does not.

  3. NNP includes the value of indirect business taxes, while NI does not.

  4. NI includes the value of indirect business taxes, while NNP does not.

Show answer
Correct Option: D
Explanation:

NI includes the value of indirect business taxes, while NNP does not.

What is the relationship between GDP and disposable income?

  1. GDP is equal to disposable income.

  2. Disposable income is equal to GDP.

  3. GDP is greater than disposable income.

  4. Disposable income is greater than GDP.

Show answer
Correct Option:
Explanation:

Disposable income is less than GDP, as it is calculated by subtracting personal taxes and other government transfers from GDP.

Which of the following is a measure of the total value of all goods and services produced in an economy in a given period of time, including intermediate goods and services?

  1. GDP

  2. GNP

  3. NNP

  4. NI

Show answer
Correct Option: A
Explanation:

GDP stands for Gross Domestic Product, which is a measure of the total value of all goods and services produced in an economy in a given period of time, including intermediate goods and services.

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