Title: QUIZ: GDP: Measurement and Growth Module
Course: Kelly's Copy and Export Course > Section: GDP: Measurement and Growth Module

Q: A growing economy is important in order to
- compute real GDP.
- reduce taxes.
- ensure that everyone’s standard of living is equal.
- meet citizens’ expectations for more goods and services.
A: meet citizens’ expectations for more goods and services.
If right: That’s correct!
If wrong: That’s incorrect. A growing economy is important in order to meet citizens’ expectations for more goods and services per capita.

Q: If a headline in the news reads "Annual GDP in U.S. Grew 4.9% in the Last Year," that would be ______ the trend growth rate for real GDP.
- above
- below
- equal to
- cannot be determined
A: above
If right: That is correct!
If wrong: That is incorrect. In the United States, the trend growth rate is about 3% annually, so an annual GDP growth of 4.9% is above the trend growth rate.

Q: Real GDP is
- the market value of all goods and services produced by United States firms adjusted for price changes.
- the sum of all environmentally harmful goods and services produced in the United States adjusted for price changes.
- the market value of all final goods and services produced within the borders of a country in a year measured in today’s prices.
- the market value of all final goods and services produced within the borders of a country in a year adjusted for price changes.
A: the market value of all final goods and services produced within the borders of a country in a year adjusted for price changes.
If right: That is correct!
If wrong: That is incorrect. Remember that real GDP is the market value of all final goods and services produced within the borders of a country in a year adjusted for price changes.

Q: Nominal GDP is
- the market value of all goods and services produced by United States firms adjusted for price changes.
- the sum of all environmentally harmful goods and services produced in the United States adjusted for price changes.
- the market value of all final goods and services produced within the borders of a country in a year measured in today’s prices.
- the market value of all final goods and services produced within the borders of a country in a year adjusted for price changes.
A: the market value of all final goods and services produced within the borders of a country in a year measured in today’s prices.
If right: That is correct!
If wrong: That is incorrect. Nominal GDP is the market value of all final goods and services produced within the borders of a country in a year measured in today’s prices.

Q: If the real GDP of Duoland grew by 3% last year, and the population of Duoland grew by 1%, the standard of living in Duoland
- improved.
- worsened.
- remained the same.
- cannot be determined from the information provided.
A: improved.
If right: That is correct!
If wrong: That is incorrect. Standard of living will improve if real GDP grows at a faster rate than the population grows.

Q: The country of Duoland has a real GDP of $400,000 one year and grows to $410,000 the next year. What is the percentage change?  Remember these formulas as you calculate:

- Ending point - starting point = amount of change

- Amount of change ÷ starting point = decimal amount

- Decimal amount x 100 = percentage rate of change
- .025% growth
- 0.25% growth
- 2.5% growth
- 25% growth
A: 2.5% growth
If right: That is correct!
If wrong: That is incorrect. The percentage change is 2.5%. $410,000-$400,000 = $10,000. $10,000/$400,000 = 0.025. 0.025 x 100 = 2.5%.