Question 1

Why are transfer payments excluded from the government component (Ga)in the calculation of GDP?

Accepted Answer

A) Because they do not represent the purchase of a good or a service. 
B) Because they are not counted as income by any economic agent. 
C) Because they do not generate additional income in the economy. 
D) Because it is difficult to assess the market value of a transfer payment. 
E) Because they are small enough to ignore when computing the national accounts. 
A) Because they do not represent the purchase of a good or a service. 
B) Because they are not counted as income by any economic agent. 
C) Because they do not generate additional income in the economy. 
D) Because it is difficult to assess the market value of a transfer payment. 
E) Because they are small enough to ignore when computing the national accounts.

Question 2

The table below includes data for a one-year period required to calculate GDP for this economy.All figures are in billions of dollars.   TABLE 20-2 Refer to Table 20-2.What is the value of net domestic income at factor cost?

Accepted Answer

A) $3626 
B) $3869 
C) $3936 
D) $3728 
E) $3904 
A) $3626 
B) $3869 
C) $3936 
D) $3728 
E) $3904

Question 3

The table below shows total output for an economy over 2 years.   TABLE 20-5 Refer to Table 20-5.If 2018 is the base year,the GDP deflator in 2018 was

Accepted Answer

A) 100. 
B) 102. 
C) 180. 
D) 193. 
E) 1000. 
A) 100. 
B) 102. 
C) 180. 
D) 193. 
E) 1000.

Question 4

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 2017 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 5

Suppose that in 2018,ABC Corporation produced $6 million worth of natural gas pipes but was able to sell only $5 million worth.Is the remaining $1 million of unsold pipes part of GDP for 2018?

Accepted Answer

A) Yes,since changes in inventories are part of consumption expenditures. 
B) Yes,since they are part of the economy's output in 2018. 
C) No,since changes in inventories are part of actual investment. 
D) No,since they are part of the economy's output only when sold. 
E) No,since they are added to existing inventories. 
A) Yes,since changes in inventories are part of consumption expenditures. 
B) Yes,since they are part of the economy's output in 2018. 
C) No,since changes in inventories are part of actual investment. 
D) No,since they are part of the economy's output only when sold. 
E) No,since they are added to existing inventories.

Question 6

In macroeconomics,what is meant by the term "investment"?

Accepted Answer

A) the total amount of capital goods in the country 
B) the production of goods for immediate consumption 
C) the same thing as profits 
D) the production of goods not for immediate consumption use 
E) money spent in markets for financial capital 
A) the total amount of capital goods in the country 
B) the production of goods for immediate consumption 
C) the same thing as profits 
D) the production of goods not for immediate consumption use 
E) money spent in markets for financial capital

Question 7

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is an injection into the circular flow?

Accepted Answer

A) imports 
B) taxes 
C) saving 
D) consumption 
E) investment 
A) imports 
B) taxes 
C) saving 
D) consumption 
E) investment

Question 8

Jodie's Bakery generates a yearly revenue of $6000.Throughout the year Jodie spends $1500 on flour,$1000 on fruit,$500 on sugar & spices,$1500 on butter,and employs an assistant whom she pays $1000.Calculate the value of the annual output produced by Jodie's Bakery using the value added method.

Accepted Answer

A) $1000 
B) $1500 
C) $4500 
D) $5000 
E) $6000 
A) $1000 
B) $1500 
C) $4500 
D) $5000 
E) $6000

Question 9

GDP from the expenditure side is equal to the sum of

Accepted Answer

A) Ca + Ia + Ga + (IMa - Xa). 
B) Ca + Ia + Ga - net exports. 
C) Ca + Ia + Ga + (Xa - IMa). 
D) Ca + Ia + Ga. 
E) Ca + Ia + net exports. 
A) Ca + Ia + Ga + (IMa - Xa). 
B) Ca + Ia + Ga - net exports. 
C) Ca + Ia + Ga + (Xa - IMa). 
D) Ca + Ia + Ga. 
E) Ca + Ia + net exports.

Question 10

All goods and services produced by one firm but used as inputs into a further stage of production are called

Accepted Answer

A) value added. 
B) intermediate goods. 
C) national income goods. 
D) final goods. 
E) consumption goods. 
A) value added. 
B) intermediate goods. 
C) national income goods. 
D) final goods. 
E) consumption goods.

Question 11

In Canada,the measurement of national income and national product is conducted by

Accepted Answer

A) the Department of Finance. 
B) the Bank of Canada. 
C) the Treasury Board. 
D) statisticians in universities. 
E) Statistics Canada. 
A) the Department of Finance. 
B) the Bank of Canada. 
C) the Treasury Board. 
D) statisticians in universities. 
E) Statistics Canada.

Question 12

Suppose that in 2018,Canada Cars Corporation produced $20 million worth of cars and trucks but was able to sell only $16 million worth.Is the remaining $4 million increase in inventories part of GDP for 2018? 1.Yes,since changes in inventories are part of consumption expenditures.
2.Yes,since they are part of the economy's output in 2018.
3.Yes,since changes in inventories are part of actual investment.

Accepted Answer

A) 1 only 
B) 2 only 
C) 3 only 
D) both 1 and 2 
E) both 2 and 3 
A) 1 only 
B) 2 only 
C) 3 only 
D) both 1 and 2 
E) both 2 and 3

Question 13

The "value added" for an individual firm can be calculated by

Accepted Answer

A) adding the cost of the intermediate goods used by the firm. 
B) subtracting the payments made to the factors of production used by the firm from the firm's revenue. 
C) calculating the revenue generated by the firm. 
D) calculating the profit generated by the firm. 
E) adding up the payments made to the factors of production used by the firm. 
A) adding the cost of the intermediate goods used by the firm. 
B) subtracting the payments made to the factors of production used by the firm from the firm's revenue. 
C) calculating the revenue generated by the firm. 
D) calculating the profit generated by the firm. 
E) adding up the payments made to the factors of production used by the firm.

Question 14

The table below includes data for a one-year period required to calculate GDP for this economy.All figures are in billions of dollars.   TABLE 20-3 Refer to Table 20-3.What is the value of GDP (in billions of dollars),as calculated from the income side?

Accepted Answer

A) $9494 
B) $11 094 
C) $9244 
D) $8819 
E) $10 606 
A) $9494 
B) $11 094 
C) $9244 
D) $8819 
E) $10 606

Question 15

In national-income accounting,a reduction of inventories counts as

Accepted Answer

A) consumption. 
B) depreciation. 
C) negative investment. 
D) positive investment. 
E) saving. 
A) consumption. 
B) depreciation. 
C) negative investment. 
D) positive investment. 
E) saving.

Why are transfer payments excluded from the government component (G_a)in the calculation of GDP?

The table below includes data for a one-year period required to calculate GDP for this economy.All figures are in billions of dollars. TABLE 20-2 Refer to Table 20-2.What is the value of net domestic income at factor cost?

The table below shows total output for an economy over 2 years. TABLE 20-5 Refer to Table 20-5.If 2018 is the base year,the GDP deflator in 2018 was

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 2017 as the base year)is

Suppose that in 2018,ABC Corporation produced $6 million worth of natural gas pipes but was able to sell only $5 million worth.Is the remaining $1 million of unsold pipes part of GDP for 2018?

In macroeconomics,what is meant by the term "investment"?

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is an injection into the circular flow?

Jodie's Bakery generates a yearly revenue of $6000.Throughout the year Jodie spends $1500 on flour,$1000 on fruit,$500 on sugar & spices,$1500 on butter,and employs an assistant whom she pays $1000.Calculate the value of the annual output produced by Jodie's Bakery using the value added method.

GDP from the expenditure side is equal to the sum of

All goods and services produced by one firm but used as inputs into a further stage of production are called

In Canada,the measurement of national income and national product is conducted by

The "value added" for an individual firm can be calculated by

The table below includes data for a one-year period required to calculate GDP for this economy.All figures are in billions of dollars. TABLE 20-3 Refer to Table 20-3.What is the value of GDP (in billions of dollars),as calculated from the income side?

In national-income accounting,a reduction of inventories counts as

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

Why are transfer payments excluded from the government component (Ga)in the calculation of GDP?

The table below includes data for a one-year period required to calculate GDP for this economy.All figures are in billions of dollars. TABLE 20-2 Refer to Table 20-2.What is the value of net domestic income at factor cost?

The table below shows total output for an economy over 2 years. TABLE 20-5 Refer to Table 20-5.If 2018 is the base year,the GDP deflator in 2018 was

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 2017 as the base year)is

Suppose that in 2018,ABC Corporation produced $6 million worth of natural gas pipes but was able to sell only $5 million worth.Is the remaining $1 million of unsold pipes part of GDP for 2018?

In macroeconomics,what is meant by the term "investment"?

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is an injection into the circular flow?

Jodie's Bakery generates a yearly revenue of $6000.Throughout the year Jodie spends $1500 on flour,$1000 on fruit,$500 on sugar & spices,$1500 on butter,and employs an assistant whom she pays $1000.Calculate the value of the annual output produced by Jodie's Bakery using the value added method.

GDP from the expenditure side is equal to the sum of

All goods and services produced by one firm but used as inputs into a further stage of production are called

In Canada,the measurement of national income and national product is conducted by

The "value added" for an individual firm can be calculated by

The table below includes data for a one-year period required to calculate GDP for this economy.All figures are in billions of dollars. TABLE 20-3 Refer to Table 20-3.What is the value of GDP (in billions of dollars),as calculated from the income side?

In national-income accounting,a reduction of inventories counts as

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

Why are transfer payments excluded from the government component (G_a)in the calculation of GDP?