Title: QUIZ: GDP: What Is It? Module
Course: Kelly's Copy and Export Course > Section: GDP: What Is It? Module

Q: In measuring gross domestic product, market value refers to
- the number of goods and services sold during a year.
- the prices of goods produced but not services provided.
- the price at which a good or service sells in the marketplace.
- the value of sales at all shopping malls, grocery stores, and retail outlets throughout the country.
A: the price at which a good or service sells in the marketplace.
If right: That is correct!
If wrong: That is incorrect. When measuring GDP, price is the market value.

Q: What is both the GDP of a country divided by that country’s population and a measure of the standard of living of a country?
- Real GDP
- Nominal GDP
- Per capita GDP
- Normal GDP
A: Per capita GDP
If right: That is correct!
If wrong: That is incorrect. Per capita GDP measures the standard of living in a country. It is calculated by taking the GDP of a country and dividing it by that country’s population.

Q: To maintain the current standard of living, an economy must grow
- at its trend rate.
- at least 10% per year.
- at least as fast as its population is growing.
- at a slower rate than its population is growing.
A: at least as fast as its population is growing.
If right: That is correct!
If wrong: That is incorrect. Standard of living is calculated by per capita GDP, not by trend rate.

Q: The country of Duoland has a GDP of $400,000, and the country of Unoland has a GDP of $100,000. The standard of living in Duoland
- is higher than the standard of living in Unoland.
- is lower than the standard of living in Unoland.
- is the same as the standard of living in Unoland.
- cannot be determined from the information provided.
A: cannot be determined from the information provided.
If right: That is correct!
If wrong: That is incorrect. You don’t have enough information to determine standard of living. Standard of living is per capita GDP. To determine standard of living, you need to know both the GDP of a country and that country’s population.

Q: What are the components of GDP?
- Consumption (C), Inflation (I), Government Spending (G), Exports (E)
- Consumption (C), Income (I), Government Spending (G), Exports (E)
- Consumption (C), Income (I), Government Spending (G), Net Exports (X-M)
- Consumption (C), Investment Spending (I), Government Spending (G), Net Exports (X-M)
A: Consumption (C), Investment Spending (I), Government Spending (G), Net Exports (X-M)
If right: That is correct.
If wrong: That is incorrect. The components of GDP are Consumption (C), Investment Spending (I), Government Spending (G), and Net Exports (X-M).

Q: A utility company builds a new nuclear reactor that is counted as part of the current year’s GDP. The nuclear reactor would be counted as part of
- income spending.
- investment spending.
- government spending.
- consumption spending.
A: investment spending.
If right: That is correct!
If wrong: That is incorrect. If a utility company builds a nuclear reactor that is counted as part of this year’s GDP, it would be investment spending.

Q: Which of the following is a final good produced by a bakery?
- Cake
- Flour
- Sugar
- Eggs
A: Cake
If right: That is correct.
If wrong: That is incorrect. Intermediate goods such as flour, sugar, and eggs are used by bakeries to produce final goods such as cakes.