GDP And Gnp Quiz
GDP is the total economic happening within the economic territory of the country. It is measured at macro levels. This quiz on GDP and GNP will test your knowledge about these macro indicators used for economic activity measurement. The quiz contains questions ranging from easy to medium to a high level that will provide you with a conceptual understanding of the topic and will also impart valuable information. Take this quiz to know more. All the best!
- 1.
Buying a brand new car from a ford dealership in Kalamazoo.
- A.
GDP
- B.
GNP
- C.
Neither
- D.
Both 1 and 2
Correct Answer
A. GDPExplanation
The purchase of a brand new car from a Ford dealership in Kalamazoo would contribute to the Gross Domestic Product (GDP) of the country. GDP measures the total value of goods and services produced within a country's borders in a specific time period, and buying a car is considered a final good or service. The purchase would not contribute to the Gross National Product (GNP) as GNP includes the value of goods and services produced by a country's residents, regardless of where they are located. Therefore, the correct answer is GDP.Rate this question:
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- 2.
An American Electronics Company selling their goods in a store in England.
- A.
GDP
- B.
GNP
- C.
Neither
- D.
GNI
Correct Answer
B. GNPExplanation
The correct answer is GNP, which stands for Gross National Product. GNP measures the total value of goods and services produced by a country's residents, including those produced abroad. In this scenario, the American Electronics Company is selling their goods in England, which means the revenue generated from these sales would contribute to the GNP of the United States. GDP, on the other hand, only measures the value of goods and services produced within a country's borders, so it would not accurately reflect the economic activity of the American company in England.Rate this question:
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- 3.
Buying supplies to build a computer that you will sell after you finish it.
- A.
GDP
- B.
GNP
- C.
Neither 1 nor 2
- D.
Both 1 and 2
Correct Answer
C. Neither 1 nor 2Explanation
Buying supplies to build a computer that you will sell after you finish it does not contribute to either GDP (Gross Domestic Product) or GNP (Gross National Product). GDP measures the value of all final goods and services produced within a country's borders, while GNP measures the value of all final goods and services produced by a country's residents, regardless of where they are located. In this case, the purchase of supplies does not directly contribute to the production of final goods or services, so it does not affect GDP or GNP.Rate this question:
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- 4.
Buying a used motorcycle from a friend in Otsego.
- A.
GDP
- B.
GNP
- C.
Neither 1 nor 2
- D.
Both 1 and 2
Correct Answer
C. Neither 1 nor 2 -
- 5.
Buying a brand new house that was built in New York.
- A.
GDP
- B.
GNP
- C.
Neither
- D.
Both 1 and 2
Correct Answer
A. GDPExplanation
The purchase of a brand new house that was built in New York would be included in the calculation of GDP (Gross Domestic Product). GDP measures the total value of goods and services produced within a country's borders during a specific time period, and the purchase of a new house is considered a final good or service. GNP (Gross National Product) includes the value of goods and services produced by a country's residents, both domestically and abroad, so it would not be applicable in this scenario. Therefore, the correct answer is GDP.Rate this question:
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- 6.
A college student selling her old textbooks to another student in Mexico.
- A.
GDP
- B.
GNP
- C.
Neither
- D.
Both 1 and 2
Correct Answer
C. NeitherExplanation
The transaction between the college student and the student in Mexico does not contribute to either GDP or GNP. GDP measures the total value of goods and services produced within a country's borders, and GNP measures the total value of goods and services produced by a country's residents, regardless of where they are located. Since the transaction involves the exchange of used textbooks and does not involve the production of new goods or services, it does not contribute to either measure.Rate this question:
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- 7.
Buying a gift certificate to Home Depot in Canada for your grandson who lives in Ohio.
- A.
GDP
- B.
GNP
- C.
Neither
- D.
Both 1 and 2
Correct Answer
B. GNP -
- 8.
Buying a house and turning it into a duplex to rent out.
- A.
GDP
- B.
GNP
- C.
Neither
- D.
Both 1 and 2
Correct Answer
C. NeitherExplanation
Buying a house and turning it into a duplex to rent out does not directly contribute to either GDP (Gross Domestic Product) or GNP (Gross National Product). GDP measures the total value of goods and services produced within a country's borders, while GNP measures the total value of goods and services produced by the residents of a country, regardless of their location. Converting a house into a duplex and renting it out would fall under investment or real estate transactions, which are not included in the calculation of GDP or GNP. Therefore, the correct answer is "Neither".Rate this question:
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- 9.
What is the full form of GDP
- A.
Gross Domestic Product
- B.
Gross Domestic Production
- C.
Gross Domestic Produce
- D.
None of the above
Correct Answer
A. Gross Domestic ProductExplanation
Gross Domestic Product (GDP) is the correct answer. GDP is a measure of the total value of all goods and services produced within a country's borders in a specific time period. It is used to assess the economic health and growth of a nation. The other options, Gross Domestic Production and Gross Domestic Produce, are not the correct full forms of GDP.Rate this question:
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- 10.
GDP minus Depriciation is
- A.
NDP
- B.
PCI
- C.
NNP
- D.
GNP
Correct Answer
A. NDPExplanation
The correct answer is NDP, which stands for Net Domestic Product. NDP is calculated by subtracting depreciation from the Gross Domestic Product (GDP). Depreciation represents the decrease in value of capital assets over time. By subtracting depreciation, NDP provides a more accurate measure of the net value of goods and services produced within a country's borders. It reflects the actual amount of income generated by the economy after accounting for the wear and tear on capital assets.Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Sep 09, 2024Quiz Edited by
ProProfs Editorial Team -
Oct 29, 2012Quiz Created by
Lmckinney
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