Question 1

In national-income accounting,a fall in Ga (other things being equal)will be recorded if

Accepted Answer

A) labour productivity in the government sector falls. 
B) the true market value of government-produced goods and services decreases. 
C) wages in the government sector rise. 
D) the Canadian armed forces reduces the size of the army. 
E) the number of employed civil servants increases,but total government salaries remains unchanged. 
A) labour productivity in the government sector falls. 
B) the true market value of government-produced goods and services decreases. 
C) wages in the government sector rise. 
D) the Canadian armed forces reduces the size of the army. 
E) the number of employed civil servants increases,but total government salaries remains unchanged. D

Question 2

Suppose a Canadian firm imports $5000 worth of frisbees from China and sells them for $10 000.The effect on GDP would be

Accepted Answer

A) to decrease the value of GDP by $15 000. 
B) to increase the value of GDP by $15 000. 
C) to increase the value of GDP by $10 000. 
D) to increase the value of GDP by $5000. 
E) No effect on GDP since the frisbees were produced outside of Canada. 
A) to decrease the value of GDP by $15 000. 
B) to increase the value of GDP by $15 000. 
C) to increase the value of GDP by $10 000. 
D) to increase the value of GDP by $5000. 
E) No effect on GDP since the frisbees were produced outside of Canada. D

Question 3

To calculate GDP from the income side,one must add together wages,

Accepted Answer

A) consumption and depreciation. 
B) interest,rent,depreciation,profits and indirect taxes net of subsidies. 
C) investment,rent,depreciation,profits and indirect taxes net of subsidies. 
D) government income,interest,and profits. 
E) net exports,depreciation,and profits. 
A) consumption and depreciation. 
B) interest,rent,depreciation,profits and indirect taxes net of subsidies. 
C) investment,rent,depreciation,profits and indirect taxes net of subsidies. 
D) government income,interest,and profits. 
E) net exports,depreciation,and profits. B

Question 4

Consider Canada's national accounts.An example of a transfer payment is

Accepted Answer

A) government payments of salaries to schoolteachers. 
B) government spending on military equipment. 
C) pensions paid from the Canada Pension Plan. 
D) private firms' payments of dividends. 
E) government payments of salaries to Members of Parliament. 
A) government payments of salaries to schoolteachers. 
B) government spending on military equipment. 
C) pensions paid from the Canada Pension Plan. 
D) private firms' payments of dividends. 
E) government payments of salaries to Members of Parliament.

Question 5

The table below shows the total output and prices for an economy that produces only two goods,potatoes and oil.Data is provided for the years 2008 and 2018. Quantities Produced Prices   TABLE 20-6
Refer to Table 20-6.What is the real GDP for 2008 if 2018 is the base year?

Accepted Answer

A) $6750 
B) $7975 
C) $9000 
D) $10 500 
E) $20 100 
A) $6750 
B) $7975 
C) $9000 
D) $10 500 
E) $20 100

Question 6

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is a withdrawal from the circular flow?

Accepted Answer

A) The Alberta provincial government purchases water bomber aircraft for fighting forest fires. 
B) Canadian barley is exported to the European Union. 
C) The Toronto transit authority buys subway cars from Mexico. 
D) A Toyota plant in Canada exports new vehicles to the United States. 
E) You spend your savings to pay for university tuition. 
A) The Alberta provincial government purchases water bomber aircraft for fighting forest fires. 
B) Canadian barley is exported to the European Union. 
C) The Toronto transit authority buys subway cars from Mexico. 
D) A Toyota plant in Canada exports new vehicles to the United States. 
E) You spend your savings to pay for university tuition.

Question 7

Which one of the following government expenditures is an example of "government purchases"?

Accepted Answer

A) $2000 paid to a retiree 
B) $1000 paid to a poor person for income support 
C) $4000 spent for services provided by a private consultant 
D) $100 000 paid as interest on the national debt 
E) $600 paid to an unemployed worker for employment insurance 
A) $2000 paid to a retiree 
B) $1000 paid to a poor person for income support 
C) $4000 spent for services provided by a private consultant 
D) $100 000 paid as interest on the national debt 
E) $600 paid to an unemployed worker for employment insurance

Question 8

When adding up the value of all goods produced in the economy,double counting can be avoided if only the ________ is included.

Accepted Answer

A) value of final good and services 
B) value of intermediate goods and services 
C) cost of intermediate goods and services 
D) revenue of all goods and services 
E) revenue of intermediate goods and services 
A) value of final good and services 
B) value of intermediate goods and services 
C) cost of intermediate goods and services 
D) revenue of all goods and services 
E) revenue of intermediate goods and services

Question 9

In national-income accounting,replacement investment is the investment that

Accepted Answer

A) is used in the calculation of GDP from the expenditure side. 
B) maintains the existing capital stock at a constant level. 
C) is equal to all existing capital stock in the country. 
D) when added to gross investment is equal to total saving. 
E) is done by the government. 
A) is used in the calculation of GDP from the expenditure side. 
B) maintains the existing capital stock at a constant level. 
C) is equal to all existing capital stock in the country. 
D) when added to gross investment is equal to total saving. 
E) is done by the government.

Question 10

In national-income accounting,a rise in Ga will be recorded (other things being equal)if

Accepted Answer

A) labour productivity in the government sector rises. 
B) output of government-produced goods and services increases. 
C) the total salaries paid to civil servants rise. 
D) wages in the government sector fall. 
E) the government's purchases of office furniture falls. 
A) labour productivity in the government sector rises. 
B) output of government-produced goods and services increases. 
C) the total salaries paid to civil servants rise. 
D) wages in the government sector fall. 
E) the government's purchases of office furniture falls.

Question 11

The table below shows total output for an economy over 2 years.   TABLE 20-8 Refer to Table 20-8.The nominal Gross Domestic Product in 2018 was

Accepted Answer

A) $1760. 
B) $1500. 
C) $1300. 
D) $1260. 
E) $410. 
A) $1760. 
B) $1500. 
C) $1300. 
D) $1260. 
E) $410.

Question 12

Gross domestic product is the sum of factor incomes ________ indirect business taxes,________ subsidies,________ depreciation.

Accepted Answer

A) plus; plus; plus 
B) plus; plus; minus 
C) plus; minus; minus 
D) plus; minus; plus 
E) minus; plus; plus 
A) plus; plus; plus 
B) plus; plus; minus 
C) plus; minus; minus 
D) plus; minus; plus 
E) minus; plus; plus

Question 13

In Lumberville,the lumberjack cuts trees and sells them to the local mill for $500.The local mill processes these trees into wood planks and sells them to the carpenter for $800.Finally,the carpenter uses these wood planks to make tables which he sells for $1400 to Lumberville's residents.If we allowed double counting,the total value of Lumberville's output would be calculated as ________.But if we correctly compute the total value added,the value of the total output in Lumberville would be ________.

Accepted Answer

A) $1400; $1400 
B) $2200; $2700 
C) $2200; $4200 
D) $2700; $1400 
E) $4200; $2700 
A) $1400; $1400 
B) $2200; $2700 
C) $2200; $4200 
D) $2700; $1400 
E) $4200; $2700

Question 14

In national-income accounting,government expenditures on the salaries of civil servants are included at

Accepted Answer

A) their imputed market value. 
B) the market value of the goods and services they produce. 
C) their after-tax salaries. 
D) their pre-tax salaries,or factor incomes. 
E) opportunity cost. 
A) their imputed market value. 
B) the market value of the goods and services they produce. 
C) their after-tax salaries. 
D) their pre-tax salaries,or factor incomes. 
E) opportunity cost.

Question 15

In national-income accounting,what does the term Ia represent?

Accepted Answer

A) actual net investment 
B) actual net investment minus depreciation 
C) actual gross investment (including depreciation) 
D) actual inventory investment 
E) actual fixed investment minus depreciation 
A) actual net investment 
B) actual net investment minus depreciation 
C) actual gross investment (including depreciation) 
D) actual inventory investment 
E) actual fixed investment minus depreciation

Question 16

Which of the following is equivalent to real GDP?

Accepted Answer

A) the money value of all goods and services produced in an economy per year plus imports 
B) the market value of all goods and services produced in an economy per year 
C) personal disposable income plus depreciation 
D) the value added of all goods and services produced in an economy per year adjusted for price changes 
E) the nominal value of all goods and services in an economy per year 
A) the money value of all goods and services produced in an economy per year plus imports 
B) the market value of all goods and services produced in an economy per year 
C) personal disposable income plus depreciation 
D) the value added of all goods and services produced in an economy per year adjusted for price changes 
E) the nominal value of all goods and services in an economy per year

Question 17

If nominal GDP in some year is $3800 and the GDP deflator for the same year is 152,then the real GDP for that year is

Accepted Answer

A) $2280. 
B) $2500. 
C) $3500. 
D) $3800. 
E) $5776. 
A) $2280. 
B) $2500. 
C) $3500. 
D) $3800. 
E) $5776.

Question 18

The table below shows total output for an economy over 2 years.   TABLE 20-8 Refer to Table 20-8.The implicit GDP deflator in 2018 (using 2018 as the base year)is

Accepted Answer

A) 71.59. 
B) 100. 
C) 103.4. 
D) 114.6. 
E) 139.7. 
A) 71.59. 
B) 100. 
C) 103.4. 
D) 114.6. 
E) 139.7.

Question 19

When calculating GDP from the expenditure side,Ga comprises

Accepted Answer

A) only expenditures made by the federal government. 
B) government purchases of goods and services,excluding transfer payments. 
C) only purchases of goods and not services. 
D) only expenditures made by provincial and local governments. 
E) government expenditures on goods and services,including transfer payments. 
A) only expenditures made by the federal government. 
B) government purchases of goods and services,excluding transfer payments. 
C) only purchases of goods and not services. 
D) only expenditures made by provincial and local governments. 
E) government expenditures on goods and services,including transfer payments.

Question 20

Consider the circular flow of income and expenditure in the Canadian economy.Which of the following is a withdrawal from the circular flow?

Accepted Answer

A) Your family buys weekly groceries. 
B) Bombardier exports subway cars to Mexico. 
C) You put $500 into your TFSA (tax-free savings account). 
D) The B.C.provincial government builds a new hospital. 
E) Canadian farmers sell wheat to China. 
A) Your family buys weekly groceries. 
B) Bombardier exports subway cars to Mexico. 
C) You put $500 into your TFSA (tax-free savings account). 
D) The B.C.provincial government builds a new hospital. 
E) Canadian farmers sell wheat to China.

In national-income accounting,a fall in G_a (other things being equal)will be recorded if

Suppose a Canadian firm imports $5000 worth of frisbees from China and sells them for $10 000.The effect on GDP would be

To calculate GDP from the income side,one must add together wages,

Consider Canada's national accounts.An example of a transfer payment is

The table below shows the total output and prices for an economy that produces only two goods,potatoes and oil.Data is provided for the years 2008 and 2018. Quantities Produced Prices TABLE 20-6 Refer to Table 20-6.What is the real GDP for 2008 if 2018 is the base year?

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is a withdrawal from the circular flow?

Which one of the following government expenditures is an example of "government purchases"?

When adding up the value of all goods produced in the economy,double counting can be avoided if only the ________ is included.

In national-income accounting,replacement investment is the investment that

In national-income accounting,a rise in G_a will be recorded (other things being equal)if

The table below shows total output for an economy over 2 years. TABLE 20-8 Refer to Table 20-8.The nominal Gross Domestic Product in 2018 was

Gross domestic product is the sum of factor incomes indirect business taxes, subsidies, depreciation.

In national-income accounting,government expenditures on the salaries of civil servants are included at

In national-income accounting,what does the term I_a represent?

Which of the following is equivalent to real GDP?

If nominal GDP in some year is $3800 and the GDP deflator for the same year is 152,then the real GDP for that year is

The table below shows total output for an economy over 2 years. TABLE 20-8 Refer to Table 20-8.The implicit GDP deflator in 2018 (using 2018 as the base year)is

When calculating GDP from the expenditure side,G_a comprises

Consider the circular flow of income and expenditure in the Canadian economy.Which of the following is a withdrawal from the circular flow?

Economic Issues and Concepts

Economic Theories, data, and Graphs

Demand, supply, and Price

What Macroeconomics Is All About

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

Real Gdp and the Price Level in the Short Run

From the Short Run to the Long Run: the Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Trade Policy

Exchange Rates and the Balance of Payments

Filters

Exam 20: The Measurement of National Income

In national-income accounting,a fall in Ga (other things being equal)will be recorded if

Suppose a Canadian firm imports $5000 worth of frisbees from China and sells them for $10 000.The effect on GDP would be

To calculate GDP from the income side,one must add together wages,

Consider Canada's national accounts.An example of a transfer payment is

The table below shows the total output and prices for an economy that produces only two goods,potatoes and oil.Data is provided for the years 2008 and 2018. Quantities Produced Prices TABLE 20-6 Refer to Table 20-6.What is the real GDP for 2008 if 2018 is the base year?

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is a withdrawal from the circular flow?

Which one of the following government expenditures is an example of "government purchases"?

When adding up the value of all goods produced in the economy,double counting can be avoided if only the ________ is included.

In national-income accounting,replacement investment is the investment that

In national-income accounting,a rise in Ga will be recorded (other things being equal)if

The table below shows total output for an economy over 2 years. TABLE 20-8 Refer to Table 20-8.The nominal Gross Domestic Product in 2018 was

Gross domestic product is the sum of factor incomes ________ indirect business taxes,________ subsidies,________ depreciation.

In national-income accounting,government expenditures on the salaries of civil servants are included at

In national-income accounting,what does the term Ia represent?

Which of the following is equivalent to real GDP?

If nominal GDP in some year is $3800 and the GDP deflator for the same year is 152,then the real GDP for that year is

The table below shows total output for an economy over 2 years. TABLE 20-8 Refer to Table 20-8.The implicit GDP deflator in 2018 (using 2018 as the base year)is

When calculating GDP from the expenditure side,Ga comprises

Consider the circular flow of income and expenditure in the Canadian economy.Which of the following is a withdrawal from the circular flow?

Economic Issues and Concepts

Economic Theories, data, and Graphs

Demand, supply, and Price

What Macroeconomics Is All About

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

Real Gdp and the Price Level in the Short Run

From the Short Run to the Long Run: the Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Trade Policy

Exchange Rates and the Balance of Payments

Filters

In national-income accounting,a fall in G_a (other things being equal)will be recorded if

In national-income accounting,a rise in G_a will be recorded (other things being equal)if

Gross domestic product is the sum of factor incomes indirect business taxes, subsidies, depreciation.

In national-income accounting,what does the term I_a represent?

When calculating GDP from the expenditure side,G_a comprises