GDP And Gnp Quiz

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  • 1/10 Questions

    What is the full form of GDP

    • Gross Domestic Product
    • Gross Domestic Production
    • Gross Domestic Produce
    • None of the above
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About This 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!

GDP And Gnp Quiz - Quiz

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  • 2. 

    An American Electronics Company selling their goods in a store in England.

    • GDP

    • GNP

    • Neither

    • GNI

    Correct Answer
    A. GNP
    Explanation
    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.

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  • 3. 

    Buying a brand new house that was built in New York.

    • GDP

    • GNP

    • Neither

    • Both 1 and 2

    Correct Answer
    A. GDP
    Explanation
    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.

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  • 4. 

    A college student selling her old textbooks to another student in Mexico.

    • GDP

    • GNP

    • Neither

    • Both 1 and 2

    Correct Answer
    A. Neither
    Explanation
    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.

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  • 5. 

    Buying a used motorcycle from a friend in Otsego.

    • GDP

    • GNP

    • Neither 1 nor 2

    • Both 1 and 2

    Correct Answer
    A. Neither 1 nor 2
  • 6. 

    Buying a brand new car from a ford dealership in Kalamazoo.

    • GDP

    • GNP

    • Neither

    • Both 1 and 2

    Correct Answer
    A. GDP
    Explanation
    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.

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  • 7. 

    Buying supplies to build a computer that you will sell after you finish it.

    • GDP

    • GNP

    • Neither 1 nor 2

    • Both 1 and 2

    Correct Answer
    A. Neither 1 nor 2
    Explanation
    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.

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  • 8. 

    Buying a gift certificate to Home Depot in Canada for your grandson who lives in Ohio.

    • GDP

    • GNP

    • Neither

    • Both 1 and 2

    Correct Answer
    A. GNP
  • 9. 

    Buying a house and turning it into a duplex to rent out.

    • GDP

    • GNP

    • Neither

    • Both 1 and 2

    Correct Answer
    A. Neither
    Explanation
    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".

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  • 10. 

    GDP minus Depriciation is

    • NDP

    • PCI

    • NNP

    • GNP

    Correct Answer
    A. NDP
    Explanation
    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.

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  • Current Version
  • Sep 09, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 29, 2012
    Quiz Created by
    Lmckinney
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