Question 1

Additions to the nation's capital stock are brought about through

Accepted Answer

A)  the current account surplus. 
B)  investment. 
C)  investment and the current account surplus. 
D)  investment and the government budget surplus. 
E)  government deficit. 
A)  the current account surplus. 
B)  investment. 
C)  investment and the current account surplus. 
D)  investment and the government budget surplus. 
E)  government deficit.

Question 2

Acme Steel Co. produces 1,000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's contribution to GDP is

Accepted Answer

A)  $15,000. 
B)  $20,000. 
C)  $30,000. 
D)  $45,000. 
E)  $60,000. 
A)  $15,000. 
B)  $20,000. 
C)  $30,000. 
D)  $45,000. 
E)  $60,000.

Question 3

The employment/population ratio equals

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 4

The components of consumption expenditures include

Accepted Answer

A)  nondurable goods consumption. 
B)  purchases of used cars and books. 
C)  government consumption. 
D)  investment in stocks and bonds. 
E)  donations. 
A)  nondurable goods consumption. 
B)  purchases of used cars and books. 
C)  government consumption. 
D)  investment in stocks and bonds. 
E)  donations.

Question 5

Investment spending is

Accepted Answer

A)  a smaller share of GDP than consumption. 
B)  a larger share of GDP than consumption. 
C)  less volatile than consumption. 
D)  less volatile than GDP. 
E)  the share of stock prices to GDP. 
A)  a smaller share of GDP than consumption. 
B)  a larger share of GDP than consumption. 
C)  less volatile than consumption. 
D)  less volatile than GDP. 
E)  the share of stock prices to GDP.

Question 6

Suppose that in a given country in a given year, GNP equals $2,000, investment expenditures equal $200, government expenditures equal $150, and the current account surplus equals $50. Consumption expenditures therefore equals

Accepted Answer

A)  $1,000. 
B)  $120. 
C)  $140. 
D)  $160. 
E)  $230. 
A)  $1,000. 
B)  $120. 
C)  $140. 
D)  $160. 
E)  $230.

Question 7

The expenditure approach to calculating GDP includes

Accepted Answer

A)  consumption. 
B)  intermediate goods. 
C)  wage income. 
D)  net factor payments. 
E)  taxes. 
A)  consumption. 
B)  intermediate goods. 
C)  wage income. 
D)  net factor payments. 
E)  taxes.

Question 8

Private disposable income is equal to

Accepted Answer

A)  Y + TR + INT - T. 
B)  Y + NFP +TR + INT - T. 
C)  Y - TR - INT + T. 
D)  Y + CA - G. 
E)  Y - NFP - R - INT + T. 
A)  Y + TR + INT - T. 
B)  Y + NFP +TR + INT - T. 
C)  Y - TR - INT + T. 
D)  Y + CA - G. 
E)  Y - NFP - R - INT + T.

Question 9

Additions to inventory is

Accepted Answer

A)  not counted as an expenditure in GDP accounting. 
B)  counted as an intermediate input. 
C)  counted as a component of investment spending. 
D)  subtracted from sales revenue in calculating profit income. 
E)  considered national savings. 
A)  not counted as an expenditure in GDP accounting. 
B)  counted as an intermediate input. 
C)  counted as a component of investment spending. 
D)  subtracted from sales revenue in calculating profit income. 
E)  considered national savings.

Question 10

The expenditure approach to calculating GDP includes

Accepted Answer

A)  wage income. 
B)  investment. 
C)  all forms of taxation. 
D)  the sum of government spending on goods and services, transfer payments, and interest on the national debt. 
E)  corporate profits. 
A)  wage income. 
B)  investment. 
C)  all forms of taxation. 
D)  the sum of government spending on goods and services, transfer payments, and interest on the national debt. 
E)  corporate profits.

Question 11

GDP is published by Statistics Canada as part of the

Accepted Answer

A)  GDP Statistical Review. 
B)  Labour Force Statistics. 
C)  National Income and Expenditure Accounts (NIE
A) . 
D)  Survey of Current Business. 
E)  Current Population Survey. 
A)  GDP Statistical Review. 
B)  Labour Force Statistics. 
C)  National Income and Expenditure Accounts (NIE
A) . 
D)  Survey of Current Business. 
E)  Current Population Survey.

Question 12

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below.
  
-Changes in the relative prices of goods causes problems measuring real GDP because

Accepted Answer

A)  consumers change their buying habits. 
B)  consumers buy less of the cheaper good. 
C)  firms produce more of the cheaper good. 
D)  price deflators only measure the price level. 
E)  they tend to be inaccurate. 
A)  consumers change their buying habits. 
B)  consumers buy less of the cheaper good. 
C)  firms produce more of the cheaper good. 
D)  price deflators only measure the price level. 
E)  they tend to be inaccurate.

Question 13

The unemployment rate equals

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Additions to the nation's capital stock are brought about through

Acme Steel Co. produces 1,000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's contribution to GDP is

The employment/population ratio equals

The components of consumption expenditures include

Investment spending is

Suppose that in a given country in a given year, GNP equals $2,000, investment expenditures equal $200, government expenditures equal $150, and the current account surplus equals $50. Consumption expenditures therefore equals

The expenditure approach to calculating GDP includes

Private disposable income is equal to

Additions to inventory is

The expenditure approach to calculating GDP includes

GDP is published by Statistics Canada as part of the

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below. -Changes in the relative prices of goods causes problems measuring real GDP because

The unemployment rate equals

Introduction

Business Cycle Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 2: Measurement

Additions to the nation's capital stock are brought about through

Acme Steel Co. produces 1,000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's contribution to GDP is

The employment/population ratio equals

The components of consumption expenditures include

Investment spending is

Suppose that in a given country in a given year, GNP equals $2,000, investment expenditures equal $200, government expenditures equal $150, and the current account surplus equals $50. Consumption expenditures therefore equals

The expenditure approach to calculating GDP includes

Private disposable income is equal to

Additions to inventory is

The expenditure approach to calculating GDP includes

GDP is published by Statistics Canada as part of the

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below. -Changes in the relative prices of goods causes problems measuring real GDP because

The unemployment rate equals

Introduction

Business Cycle Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters