Engagement Message
Let's quickly recap. GDP only includes final goods and services to avoid double-counting. We also distinguish between Nominal GDP (using current prices) and Real GDP (using constant base-year prices) to see true economic growth. Are you ready to practice these concepts?
Type
Multiple Choice
Practice Question
A bakery buys flour for $50, eggs for $20, and sells bread for $100. What is the total contribution to GDP?
A. $170 B. $120 C. $100 D. $50
Suggested Answers
- A
- B
- C - Correct
- D
Type
Sort Into Boxes
Practice Question
Sort these items into the correct category for GDP calculation.
Labels
- First Box Label: Final Good
- Second Box Label: Intermediate Good
First Box Items
- Replacement tires bought by consumer
- New house
- New laptop
Second Box Items
- Tires for factory
- Lumber for house
- Computer chip
Type
Fill In The Blanks
Markdown With Blanks
An economy produces 10 cars at $20,000 in Year 1. In Year 2, it produces 12 cars at $22,000. Using Year 1 as the base year:
Year 2 Nominal GDP is [[blank:240,000]].
