Free GDP Concept and Indicators Questions and Answers

Question 1

Which of the following is not a method to calculate Gross Domestic Product?

Accepted Answer

Diminishing cost method

Answer

Expenditure method

Answer

Product method

Answer

None of the above

Question 2

Which of the following is a part of the Gross National Product (GNP)?

Accepted Answer

All of the above

Answer

Exports

Answer

Money earned by a resident abroad

Answer

Imports

Question 3

The net value of Gross Domestic Product after deducting depreciation from it is _______.

Accepted Answer

Net Domestic Product

Answer

Net National Product

Answer

Disposable Income

Answer

Gross National Product

Question 4

The average income of a country is known as _________.

Accepted Answer

Per Capita Income

Answer

Real National Income

Answer

Disposable Income

Answer

None of the above

Question 5

Transfer payments refer to payments that are made ________.

Accepted Answer

Without any exchange of goods and services

Answer

As compensation to employees

Answer

To workers on transfer from one job to another

Answer

None of the above

Question 6

Which sector in the economy is the largest contributor to the Gross National Product?

Accepted Answer

Tertiary sector

Answer

Public sector

Answer

Primary sector

Answer

Secondary sector

Question 7

Which of the following is a limitation of the Gross Domestic Product?

Accepted Answer

All of the above

Answer

It fails to indicate the sustainability of a nation’s growth

Answer

It doesn’t consider the impact of economic activities on human health and the environment

Answer

It does not include non-market transactions

Question 8

The total income from economic activities across the country within a year is known as ________.

Accepted Answer

National Income

Answer

Disposable Income

Answer

Net Income

Answer

None of the above

Question 9

Which of the following statements is true about Nominal Gross Domestic Product?

Accepted Answer

It is calculated by considering the current prices

Answer

It shows a more accurate picture of a country’s economy as compared to real GDP

Answer

It is calculated by considering the base prices

Answer

None of the above

Question 10

Which of the following is added in calculating Gross Domestic Product?

Accepted Answer

An artisan constructing a new house

Answer

A teacher teaching their child

Answer

The value of resale of old shares

Answer

None of the above