Exam 5: Measuring a Nations Income

During a federal election campaign, the incumbent argues that he should be re-elected because GDP grew by 12 percent during his four-year term in office. You know that population grew by 4 percent over the period, and that the GDP deflator increased by 6 percent during the past four years. What can you conclude about real GDP per person?

Which of the following is counted in Canadian GDP?

Makena buys a designer dress produced by a Canadian-owned fashion shop in France. As a result, Canadian consumption increases. What happens as a result?

How are intermediate goods treated in GDP computations?

In computing GDP, what is investment?

With respect to GDP, how are welfare payments treated?

What is NOT included in GDP?

An economy produces only eggs and ham. Last year, it produced 100 units of eggs at $3 each and 50 units of ham at $4 each. If in the base year eggs sold for $1.50 per unit and ham sold for $5 per unit, what can we conclude?

In a given year, an economy has consumption of $7000, investment of $3000, government purchases of $2500, exports of $2500, imports of $1000, taxes of $1200, transfer payments of $1400, and depreciation of $1300. What is the GDP?

A German citizen buys an automobile produced in Canada by a Japanese company. What happens as a result?

Which of the following countries had the highest Human Development Index (HDI) value in 2018?

Which statement supports the idea of using GDP as a measure of well-being?

In a given year, an economy has consumption of $6000, investment of $4000, government purchases of $3000, exports of $1500, and imports of $500. What is the GDP?

Which of the following is included in Canadian GDP?

Suppose that over the past 25 years a country's nominal GDP grew to three times its former size. In the meantime, population grew 50 percent and prices rose 100 percent. What happened to real GDP per person?

If a small country has current nominal GDP of $40 billion and the GDP deflator is 125, what is its real GDP?

If nominal GDP is $1 trillion and real GDP is $0.8 trillion, what is the GDP deflator?

Which example will increase Canadian net exports?

Which of the following is included in the investment component of Canadian GDP?

What is the relationship between income and expenditure for an economy?