A news-and-exam search whenever growth numbers drop. This page has 100 important questions and answers. Original explainer for daily search — not a government login or live tracker.
GDP (gross domestic product) is the market value of final goods and services produced in a country in a period. News headlines say “the economy grew 2%” — they usually mean real GDP, after inflation. GDP per person (per capita) is a rough living-standards clue, not a happiness score.
GDP misses unpaid care, much of the informal economy, and whether growth wrecked the air. Still, it is the number ministers and markets quote.
100 important questions. Quick 10 is a random set; Full set plays every question.
Your score
100 questions and answers
Each item is a 4-option MCQ. Open a question, tap A–D. Green is correct, red is wrong. Original explainers — not copied match reports.
1. A second-hand car sale usually
Tap A, B, C or D.
Answer: A) does not add the full price to GDP again
The dealer margin or service can count.
2. Value added at each stage
Tap A, B, C or D.
Answer: A) sums to the final output value
That is the production approach idea.
3. Potential GDP is
Tap A, B, C or D.
Answer: B) a smooth estimate of what the economy can supply without overheating
The output gap is actual minus potential.
4. The GDP deflator is
Tap A, B, C or D.
Answer: C) a broad price index for domestic output
It helps turn nominal into real.
5. Government spending G in the textbook identity includes
Tap A, B, C or D.
Answer: C) public purchases of goods and services, not every transfer
Details sit in the statistical guide.
6. Inventory investment is
Tap A, B, C or D.
Answer: C) unsold output that still counts as I in that period
Next period, running stocks down can subtract.
7. A base year is used so that
Tap A, B, C or D.
Answer: A) real GDP can be compared in constant prices
Rebasing changes the look of history a bit.
8. GDP per capita is a rough living-standards clue, not
Tap A, B, C or D.
Answer: B) each person income or a happiness score
Distribution can be very uneven.
9. A large GDP can coexist with
Tap A, B, C or D.
Answer: B) high poverty if income is concentrated
Medians and poverty rates add the picture.
10. Exports add to GDP in the expenditure sum; imports are
Tap A, B, C or D.
Answer: C) subtracted so that foreign goods are not treated as home output
X − M is net exports.
11. Quarterly GDP first prints are
Tap A, B, C or D.
Answer: C) estimates that can be revised
Markets still move on the first print.
12. A common news rule of thumb for recession is
Tap A, B, C or D.
Answer: B) two falling quarters of real GDP — official definitions differ
The US NBER uses a broader committee call.
13. Unpaid household care is
Tap A, B, C or D.
Answer: A) mostly outside GDP even though it is work
That is a known wellbeing gap.
14. Green or sustainable GDP ideas try to
Tap A, B, C or D.
Answer: B) adjust for resource damage; they are not the headline number
Ministers still quote standard GDP.
15. If real GDP rises 2% and population rises 3%, GDP per person
Tap A, B, C or D.
Answer: B) falls about 1%
Per capita is the living-standards cut.
16. Investment I in GDP is
Tap A, B, C or D.
Answer: D) capital formation (machines, buildings, inventories), not buying shares
A share sale is a transfer of ownership.
17. A tourist meal in Paris by a visitor counts toward
Tap A, B, C or D.
Answer: C) French GDP (it was produced in France)
Location of production is the GDP test.
18. A domestic firm factory abroad counts in
Tap A, B, C or D.
Answer: A) the host country GDP, and may show in home GNI via profits
That is the GDP vs GNI split.
19. Seasonal adjustment tries to
Tap A, B, C or D.
Answer: B) remove the usual holiday or harvest pattern
Compare quarter to quarter with care anyway.
20. A GDP drop can be a recession signal; a price-index rise is
Tap A, B, C or D.
Answer: A) inflation, a different idea
Stagflation is both looking ugly at once.
21. Underground illegal output is
Tap A, B, C or D.
Answer: A) estimated poorly and often incomplete in GDP
That is one reason cross-country levels are messy.
22. Double deflation or chain-linking are
Tap A, B, C or D.
Answer: B) statistical methods for real output; students meet them as real vs nominal first
The idea is still inflation-adjusted volume.
23. Net exports can be negative when
Tap A, B, C or D.
Answer: A) imports exceed exports
A trade deficit is not the same as a budget deficit.
24. Household consumption C is usually
Tap A, B, C or D.
Answer: C) the largest share of GDP in many rich countries
Services sit inside C.
25. GDP is a flow for a period (a year or quarter), not
Tap A, B, C or D.
Answer: A) a stock of all buildings ever built
Wealth and capital are stocks.
26. Quality improvements (better phones, same price)
Tap A, B, C or D.
Answer: B) are hard to capture and can bias real GDP
Hedonic adjustments try to help.
27. A natural disaster can cut GDP even if
Tap A, B, C or D.
Answer: D) rebuild later raises measured output
GDP is a poor welfare score after a flood.
28. Comparing GDP across years without real terms
Tap A, B, C or D.
Answer: B) mixes volume change with price change
Always ask nominal or real.
29. The income approach to GDP adds
Tap A, B, C or D.
Answer: A) wages, profits, and other incomes (plus adjustments)
It should match production in theory.
30. A rise in GDP does not by itself say
Tap A, B, C or D.
Answer: B) who gained or whether air quality fell
Use extra indicators.
31. Small open economies can have GDP swung by
Tap A, B, C or D.
Answer: C) a few big plants or commodity prices
One factory closure is national news.
32. Per capita GDP at PPP is used to
Tap A, B, C or D.
Answer: C) compare living standards more fairly than raw FX dollars
It is still an average.
33. Inventories rising while sales fall can
Tap A, B, C or D.
Answer: C) keep GDP up for a quarter, then reverse
Watch sales, not only the headline.
34. Ministers quote GDP because
Tap A, B, C or D.
Answer: D) it is the standard output score markets already watch
Know what it misses when you read the speech.
35. The government budget balance is not
Tap A, B, C or D.
Answer: A) the same number as GDP
Deficit and GDP are different accounts.
36. The official source for “what is gdp” (learn desk, item 1) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
37. The official source for “what is gdp” (learn desk, item 2) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
38. The official source for “what is gdp” (learn desk, item 3) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
39. The official source for “what is gdp” (learn desk, item 4) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
40. The official source for “what is gdp” (learn desk, item 5) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
41. The official source for “what is gdp” (learn desk, item 6) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
42. The official source for “what is gdp” (learn desk, item 7) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
43. The official source for “what is gdp” (learn desk, item 8) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
44. The official source for “what is gdp” (learn desk, item 9) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
45. The official source for “what is gdp” (learn desk, item 10) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
46. The official source for “what is gdp” (learn desk, item 11) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
47. The official source for “what is gdp” (learn desk, item 12) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
48. The official source for “what is gdp” (learn desk, item 13) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
49. The official source for “what is gdp” (learn desk, item 14) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
50. The official source for “what is gdp” (learn desk, item 15) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
51. The official source for “what is gdp” (learn desk, item 16) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
52. The official source for “what is gdp” (learn desk, item 17) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
53. The official source for “what is gdp” (learn desk, item 18) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
54. The official source for “what is gdp” (learn desk, item 19) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
55. The official source for “what is gdp” (learn desk, item 20) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
56. The official source for “what is gdp” (learn desk, item 21) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
57. The official source for “what is gdp” (learn desk, item 22) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
58. The official source for “what is gdp” (learn desk, item 23) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
59. The official source for “what is gdp” (learn desk, item 24) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
60. The official source for “what is gdp” (learn desk, item 25) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
61. The official source for “what is gdp” (learn desk, item 26) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
62. The official source for “what is gdp” (learn desk, item 27) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
63. The official source for “what is gdp” (learn desk, item 28) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
64. The official source for “what is gdp” (learn desk, item 29) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
65. The official source for “what is gdp” (learn desk, item 30) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
66. The official source for “what is gdp” (learn desk, item 31) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
67. The official source for “what is gdp” (learn desk, item 32) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
68. The official source for “what is gdp” (learn desk, item 33) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
69. The official source for “what is gdp” (learn desk, item 34) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
70. The official source for “what is gdp” (learn desk, item 35) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
71. The official source for “what is gdp” (learn desk, item 36) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
72. The official source for “what is gdp” (learn desk, item 37) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
73. The official source for “what is gdp” (learn desk, item 38) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
74. The official source for “what is gdp” (learn desk, item 39) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
75. The official source for “what is gdp” (learn desk, item 40) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
76. The official source for “what is gdp” (learn desk, item 41) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
77. The official source for “what is gdp” (learn desk, item 42) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
78. The official source for “what is gdp” (learn desk, item 43) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
79. The official source for “what is gdp” (learn desk, item 44) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
80. The official source for “what is gdp” (learn desk, item 45) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
81. The official source for “what is gdp” (learn desk, item 46) is
Tap A, B, C or D.
Answer: D) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
82. The official source for “what is gdp” (learn desk, item 47) is
Tap A, B, C or D.
Answer: C) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
83. The official source for “what is gdp” (learn desk, item 48) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
84. The official source for “what is gdp” (learn desk, item 49) is
Tap A, B, C or D.
Answer: A) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
85. The official source for “what is gdp” (learn desk, item 50) is
Tap A, B, C or D.
Answer: B) the authority or standard named on this page’s explainer
GKSchools English practice is original — not an official script.
86. GDP measures
Tap A, B, C or D.
Answer: A) the value of final output in a country in a period
Final avoids counting the same tyre twice.
87. Real GDP adjusts for
Tap A, B, C or D.
Answer: D) inflation
Nominal GDP is in current prices.
88. GDP per capita is
Tap A, B, C or D.
Answer: C) GDP divided by population
It is an average, not your paycheck.
89. A recession is often described as
Tap A, B, C or D.
Answer: C) a significant decline in activity (many newsrooms use two falling GDP quarters as a rule of thumb)
Official definitions differ by country.
90. Exports add to GDP; imports
Tap A, B, C or D.
Answer: C) are subtracted in the expenditure approach
GDP = C + I + G + (X − M) in textbooks.
91. GDP is not
Tap A, B, C or D.
Answer: D) a complete measure of wellbeing
Bhutan popularised GNH as a contrast.
92. Quarterly GDP is
Tap A, B, C or D.
Answer: D) a three-month estimate that can be revised
First prints move markets.
93. A large GDP country can still have
Tap A, B, C or D.
Answer: D) high poverty if income is uneven
Distribution matters.
94. GNP (or GNI) differs from GDP because it
Tap A, B, C or D.
Answer: A) follows nationality of owners more than location of production
GDP is about what is made at home.
95. The expenditure approach writes GDP as
Tap A, B, C or D.
Answer: C) C + I + G + (X − M)
C is consumption; I is investment; G is government; X−M is net exports.
96. Intermediate goods are left out of GDP so that
Tap A, B, C or D.
Answer: A) the same tyre is not counted twice
Final goods (or value added) avoid double counting.
97. Nominal GDP is measured in
Tap A, B, C or D.
Answer: B) current prices
Real GDP strips out inflation.
98. Purchasing-power parity (PPP) compares
Tap A, B, C or D.
Answer: B) what money buys across countries, not only market FX
