Chapter 6 Reading Quiz

Question 1

Which of the following would be counted in GDP? 

  imported cheese 
  used furniture 
  vegetables sold in a farmers market 
  vegetables grown in a backyard 
 
Question 2

If a country has a trade surplus, then the country

  does not trade with other countries 
  imports as much as it exports 
  exports more than it imports 
  imports more than it exports 
 

Question 3

The nominal GDP of Coruscant is $73 billion USD and the real GDP is $76 billion USD. What is the GDP deflator?

  1.04 
  104 
  0.96 
  96 
 

Question 4

Why do we not make comparisons of nominal GDP over several years?
 

  Nominal GDP does not include intermediate goods 
  Nominal GDP does not take into account the effects of inflation 
  Nominal GDP does not include imported goods 
  Nominal GDP does not include childcare 
 

Question 5

The nominal GDP of Jakku is $52 billion USD and the GDP deflator is 104. What is the real GDP?

  0.5 
  54 
  50 
  2 
 

Question 6

New housing is included under which category?

  consumption 
  investment 
  net exports 
  durable goods 
 
Question 7

The real GDP of Tatooine in 2020 was $23 billion USD. In 2021, the real GDP of Tatooine changed to $21 billion USD. What is the real GDP growth rate?

  0.095% 
  – 8.7% 
  – 0.087% 
  9.5% 
 

Question 8

Why is GDP an imperfect measure for “standard of living”?

  it does not take into account actual levels of healthcare available 
  it measures the income of a country 
  it does not include imported goods 
  it does not include goods sold from home 
 
Question 9

The table below contains economic data for Dagobah. Nominal and Real GDP is measured in USD.

What is the inflation rate from 2021 to 2022?

  6.7% 
  0.08% 
  0% 
  8.8% 
 
Question 10

The nominal interest rate on an interest-bearing account is 0.5%. If the inflation rate is 3%, what is the real interest rate?

  2.5% 
  3.5% 
  -2.5% 
  0.5%