Question

1- Which of the following is included in a measure of GDP?

spending on public infrastructure

spending on non-market transactions like painting your house

spending on used goods

2 - Which of the following describes inflation?

It increases the real value of anything expressed in dollars.

It is an increase in the cost of a given basket of goods.

It can occur only when many goods are falling in price.

It means that the price of every good and service is rising

3- Throughout human history economic growth

has brought about substantial gains in incomes and standards of living in many countries.

has achieved substantial gains in per capita GDP since the 19th century for all countries.

follows a steady, long-term upward path.

Answer 1

1. Spending on public infrastructure

Explanation: Spending on public infrastructure comes under government expenditure, which is a component of GDP.

2. It is an increase in the cost of a given basket of goods.

Explanation: In the case of inflation, there is an increase in the cost of a basket if goods.

3. Has achieved substantial gains in per capita GDP since the 19th century for all countries.

Explanation: Per capita GDP has shown a steady growth since the 19th century.