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Chapter 12: What GDP Does Not Measure

The document discusses what GDP does not measure and contains 10 multiple choice questions about GDP calculations and what is included in GDP figures. Specifically, it asks about nominal vs real GDP, what economic goal countries prioritize, what goods are included in GDP, how GDP per capita relates to standard of living, what international trade is included, and what non-market or illegal activities are excluded from GDP.

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Manal Al-Moataz
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47 views3 pages

Chapter 12: What GDP Does Not Measure

The document discusses what GDP does not measure and contains 10 multiple choice questions about GDP calculations and what is included in GDP figures. Specifically, it asks about nominal vs real GDP, what economic goal countries prioritize, what goods are included in GDP, how GDP per capita relates to standard of living, what international trade is included, and what non-market or illegal activities are excluded from GDP.

Uploaded by

Manal Al-Moataz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 12: What GDP Does Not Measure

Multiple Choice Questions:-

1. What type of GDP is calculated with the current year's prices?

A. Nominal GDP
B. Real GDP
C. GDP per capita

2. What is the 1st economic goal of each country?

A. Limit Inflation
B. Limit Unemployment
C. Promote Economic Growth
D. Measure expenditures

3. Gross Domestic Product (GDP) ONLY refers to the total value of FINAL goods and
services produced in a country in one year

A. True
B. False

4. Which of the following goods is included in GDP?

A. Dresses
B. Flour for making bread
C. Cloth for making dresses

5. High levels of GDP per capita indicate...

A. Higher levels of happiness 


B. Higher standard of living
C. Equal levels of wealth 
D. Self-sufficient communities
6. A shoe produced in South Korea and sold in the U.S.

A. Included in U.S. GDP


B. Included in South Korea GDP
C. Included in Canadian GDP

7. To be certain that a country is producing more from year to year, economists look
to see that ________________ has _________________. 

A. GDP; decreased
B. GDP; increased
C. Real GDP; decreased
D. Real GDP; increased

8. The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year


industry.  Is this included in GDP?

A. Yes - Consumer spending


B. Yes - Government Spending
C. No - Underground Economy 
D. No - Non-market activity 

9. Mark always changes his own oil.  Is this effort counted in GDP?

A. No - Black Market
B. No - Non-market Activity
C. No - Unreported Income
D. No - Purely financial transaction 

10. Which is NOT included in Gross Domestic Product (GDP) as a measure of the
economy? 

A. Final goods and services


B. Work done at home such as house renovations
C. Dollars
D. Government spending

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