Practice Test GeeksGDP - Gross Domestic Product Practice Test
← All GDP Flashcard Decks

Calculation Flashcards

7 cards from real GDP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Calculation flashcards as text

  1. Which of the following would INCREASE U.S. GDP?

    Answer: A U.S. factory produces and sells $50M in goods domestically

    Newly produced and sold goods count in GDP; stock purchases, transfer payments, and used-good sales do not.

  2. Country X has wages of $500B, profits of $200B, rent of $80B, and net interest of $50B. Using the income approach, what is GDP (ignoring adjustments)?

    Answer: $830B

    Income approach GDP = Wages + Profits + Rent + Interest = $500B + $200B + $80B + $50B = $830B.

  3. If a country's exports are $300B and imports are $400B, net exports equal:

    Answer: -$100B

    Net exports (NX) = Exports - Imports = $300B - $400B = -$100B, indicating a trade deficit.

  4. Inventory investment is classified under which GDP component?

    Answer: Gross Private Domestic Investment (I)

    Changes in business inventories count as investment because they represent output produced but not yet sold.

  5. If nominal GDP is $15T and real GDP is $13T (base year = 2012), the GDP deflator is approximately:

    Answer: 115.4

    GDP Deflator = (Nominal / Real) × 100 = ($15T / $13T) × 100 ≈ 115.4.

  6. Which statement about government transfer payments and GDP is correct?

    Answer: Transfer payments are excluded because they are not payments for current production

    Transfer payments (e.g., welfare, Social Security) represent redistribution, not new production, so they are excluded from GDP.

  7. If C = $10T, I = $3T, G = $4T, X = $2T, M = $2.5T, what is GDP?

    Answer: $16.5T

    GDP = $10T + $3T + $4T + ($2T - $2.5T) = $10T + $3T + $4T - $0.5T = $16.5T.