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Federal Reserve Bank of Boston Economic Quiz

Gross Domestic Product 1. GDP is comprised of four major categories: personal consumption expenditures (or consumer spending), investment, government expenditures, and net exports. Consumer spending accounts for approximately how much of GDP? One-fourth One-third One-half Two-thirds 2. Purchases of new homes are included in residential investment (a subcategory of investment). Where are purchases of used homes financed by VA loans counted? Consumer spending Investment They are not included in GDP Government spending 3. What is the difference between GDP and GNP? There is no difference GDP includes output produced within a nation's boundaries, while GNP includes output produced by a nation's own citizens and firms GNP includes output produced within a nation's boundaries, while GDP includes output produced by a nation's own citizens and firms GDP accounts for only final goods and services, while GNP includes used goods and services 4. What is the difference between Nominal GDP and Real GDP? Real GDP includes used goods and services Real GDP is adjusted for inflation There is no difference Nominal GDP is adjusted for inflation Created with QuizScript

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Economic quiz written by: Delia Sawhney - April 22, 2002 Views expressed in the economic quiz are those of the individual author.