Lesson 23 Gross Domestic Product and Its Growth: An Introduction

Q1. What is real GDP?

GDP at constant prices Secondary sector Tertiary sector Constant prices

Q2. What is nominal GDP?

GDP at current prices Secondary sector Tertiary sector Constant prices

Q3. What is a recession?

A broad decline in economic activity Secondary sector Tertiary sector Constant prices

Q4. Which item is excluded from GDP to avoid double counting?

Intermediate goods Final goods Final services Newly produced machinery for final use

Q5. What does GNP stand for?

Gross National Product Secondary sector Tertiary sector Constant prices

Q6. True or False: GDP counts final goods and services produced within national borders.

True False Neither Cannot say

Q7. How does human capital support growth?

Education and skills improve productivity Secondary sector Tertiary sector Constant prices

Q8. What is inflation?

Sustained rise in the general price level Secondary sector Tertiary sector Constant prices

Q9. Which sector includes agriculture?

Primary sector Secondary sector Tertiary sector Quaternary only

Q10. Which is a limitation of GDP as a welfare measure?

It does not fully show income distribution Secondary sector Tertiary sector Constant prices