GDP and International Trade

Description: This quiz will test your knowledge on GDP and International Trade.
Number of Questions: 15
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Tags: gdp international trade economics
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What is the full form of GDP?

  1. Gross Domestic Product

  2. Gross Domestic Price

  3. Gross Domestic Profit

  4. Gross Domestic Purchase


Correct Option: A
Explanation:

GDP stands for Gross Domestic Product.

What does GDP measure?

  1. Total value of goods and services produced in a country

  2. Total value of goods and services consumed in a country

  3. Total value of goods and services exported from a country

  4. Total value of goods and services imported into a country


Correct Option: A
Explanation:

GDP measures the total value of goods and services produced in a country.

What are the three main components of GDP?

  1. Consumption, Investment, and Government spending

  2. Consumption, Investment, and Exports

  3. Consumption, Investment, and Imports

  4. Consumption, Government spending, and Exports


Correct Option: A
Explanation:

The three main components of GDP are Consumption, Investment, and Government spending.

What is the relationship between GDP and economic growth?

  1. GDP is a measure of economic growth

  2. Economic growth is a measure of GDP

  3. GDP and economic growth are the same thing

  4. GDP and economic growth are not related


Correct Option: A
Explanation:

GDP is a measure of economic growth.

What are the factors that affect GDP?

  1. Natural resources, Labor, Capital, and Technology

  2. Natural resources, Labor, Capital, and Government policies

  3. Natural resources, Labor, Capital, and Exchange rates

  4. Natural resources, Labor, Capital, and Interest rates


Correct Option: A
Explanation:

The factors that affect GDP are Natural resources, Labor, Capital, and Technology.

What is the difference between GDP and GNP?

  1. GDP includes only domestic production, while GNP includes both domestic and foreign production

  2. GDP includes both domestic and foreign production, while GNP includes only domestic production

  3. GDP and GNP are the same thing

  4. GDP and GNP are not related


Correct Option: A
Explanation:

GDP includes only domestic production, while GNP includes both domestic and foreign production.

What is the relationship between GDP and international trade?

  1. GDP is positively correlated with international trade

  2. GDP is negatively correlated with international trade

  3. GDP is not related to international trade

  4. GDP is sometimes positively correlated and sometimes negatively correlated with international trade


Correct Option: A
Explanation:

GDP is positively correlated with international trade.

What are the benefits of international trade?

  1. Increased economic growth, Lower prices, More variety of goods and services, All of the above


Correct Option:
Explanation:

The benefits of international trade include increased economic growth, lower prices, and more variety of goods and services.

What are the costs of international trade?

  1. Job losses, Environmental damage, Cultural homogenization, All of the above


Correct Option:
Explanation:

The costs of international trade include job losses, environmental damage, and cultural homogenization.

What are the different types of international trade?

  1. Exports, Imports, Balance of trade, All of the above


Correct Option:
Explanation:

The different types of international trade include exports, imports, and balance of trade.

What is the role of government in international trade?

  1. Set tariffs and quotas, Negotiate trade agreements, Promote exports, All of the above


Correct Option:
Explanation:

The role of government in international trade includes setting tariffs and quotas, negotiating trade agreements, and promoting exports.

What are the challenges facing international trade today?

  1. Rising protectionism, Global economic slowdown, Climate change, All of the above


Correct Option:
Explanation:

The challenges facing international trade today include rising protectionism, global economic slowdown, and climate change.

What is the future of international trade?

  1. More globalization, Less globalization, Regionalization, All of the above


Correct Option:
Explanation:

The future of international trade is uncertain, but it is likely to include a combination of more globalization, less globalization, and regionalization.

What are some of the most important international trade agreements?

  1. World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), European Union (EU), All of the above


Correct Option:
Explanation:

Some of the most important international trade agreements include the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and European Union (EU).

How does international trade affect the environment?

  1. It can lead to environmental degradation

  2. It can lead to environmental protection

  3. It can have both positive and negative effects on the environment

  4. It has no effect on the environment


Correct Option: C
Explanation:

International trade can have both positive and negative effects on the environment.

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