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

"Explanation:
The correct answer is "Diminishing cost method" because it's not a recognized method for calculating GDP."

Question 2

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

Accepted Answer

All of the above

Answer

Explanation:
Gross National Product (GNP) includes exports, imports, and the money earned by a country's residents abroad.

Question 3

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

Accepted Answer

Net Domestic Product

Answer

Explanation:
Net Domestic Product (NDP) is the net value of Gross Domestic Product (GDP) after deducting depreciation from it. It reflects the value of goods and services produced within a country's borders after accounting for the depreciation of capital goods.

Question 4

The average income of a country is known as _________.

Accepted Answer

Per Capita Income

Answer

Explanation:
Per Capita Income refers to the average income earned per person in a given area, such as a country or region. It is calculated by dividing the total income of a country by its total population.

Question 5

Transfer payments refer to payments that are made ________.

Accepted Answer

Without any exchange of goods and services

Answer

Explanation:
Transfer payments are payments made by the government to individuals, businesses, or other levels of government without receiving any goods or services in return. They are typically made for social welfare programs, subsidies, or other forms of assistance.

GDP - Gross Domestic Product Practice Test

GDP - Gross Domestic Product Practice Test

Free GDP Concept and Indicators Questions and Answers