Amazing Economics Gdp Test - 72+ MCQs: Economics - Gross Domestic Product (GDP) Quiz: Test Your Knowledge with Insightful GDP Questions and Answers

1. Examine the impact of a decrease in consumer spending on GDP and its implications for the retail sector.

A decrease in consumer spending typically leads to a reduction in GDP, as it represents a decline in the overall demand for goods and services in the economy. The retail sector, heavily dependent on consumer spending, may face challenges such as decreased sales and economic slowdown.

A decrease in consumer spending has no impact on GDP, as it is a minor component in the overall economic equation.

Consumer spending consistently contributes to economic decline, regardless of variations in consumer behavior.

Changes in consumer behavior only affect specific sectors of the economy, with no broader impact on GDP.

2. What is the relationship between GDP and standard of living?

No correlation

Inverse correlation

Positive correlation

Correlation depends on government policies

3. How does inflation impact the accuracy of GDP data in real terms?

Inflation has no impact on the accuracy of GDP data

Inflation makes GDP data more accurate

Inflation distorts the accuracy of GDP data in real terms

Inflation only affects nominal GDP

4. What is the concept of 'GDP per unit of energy use,' and how does it relate to sustainability?

GDP per unit of energy use measures the overall economic efficiency

GDP per unit of energy use is unrelated to sustainability

Higher GDP per unit of energy use indicates better sustainability

Lower GDP per unit of energy use is a sign of sustainability

5. What is the concept of 'Gross National Happiness,' and how does it go beyond traditional GDP measurements?

Gross National Happiness is unrelated to GDP

Gross National Happiness measures GDP growth rate

Gross National Happiness incorporates well-being alongside GDP

Gross National Happiness is a substitute for GDP

6. How does the 'Multiplier Effect' impact GDP in the context of government spending?

Multiplier Effect has no impact on GDP

Multiplier Effect reduces GDP

Multiplier Effect amplifies the impact of government spending on GDP

Multiplier Effect only affects the service sector

7. How is Gross Domestic Product (GDP) calculated using the expenditure approach?

GDP = Consumption + Investment + Government Spending - Exports + Imports

GDP = Consumption + Investment + Government Spending + Exports - Imports

GDP = Consumption + Investment - Government Spending + Exports - Imports

GDP = Consumption - Investment + Government Spending + Exports - Imports

8. What does GDP stand for?

Gross Domestic Product

Global Demand and Production

Government Development Plan

General Distribution Process

9. Which sector of the economy encompasses services such as healthcare, education, and hospitality?

Primary Sector

Secondary Sector

Tertiary Sector

Quaternary Sector

10. How does the 'Okun's Law' relate to GDP and unemployment?

Okun's Law measures GDP volatility

Okun's Law is unrelated to GDP and unemployment

Okun's Law describes the negative relationship between GDP and unemployment

Okun's Law determines the GDP growth rate

Economics - Gross Domestic Product (GDP) MCQ Test 5