Question 1

Interest and investment income includes:

Accepted Answer

A) retained earnings. 
B) interest on bonds and loans of money capital and rental income received by households and inputted rent. 
C) taxes which are levied on the corporations' net earnings. 
D) Interest paid to the households for their investment. 
A) retained earnings. 
B) interest on bonds and loans of money capital and rental income received by households and inputted rent. 
C) taxes which are levied on the corporations' net earnings. 
D) Interest paid to the households for their investment.

Question 2

Disposable income differs from personal income by:

Accepted Answer

A) personal taxes. 
B) personal saving. 
C) transfer payments. 
D) personal consumption expenditures. 
A) personal taxes. 
B) personal saving. 
C) transfer payments. 
D) personal consumption expenditures.

Question 3

As defined in national income accounting, investment includes:

Accepted Answer

A) business expenditures on machinery and equipment. 
B) all consumption. 
C) imports, but not exports. 
D) all nonfood items. 
A) business expenditures on machinery and equipment. 
B) all consumption. 
C) imports, but not exports. 
D) all nonfood items.

Question 4

The term "final goods and services" refers to:

Accepted Answer

A) goods and services which are unsold and therefore added to inventories. 
B) goods and services whose value has been adjusted for changes in the price level. 
C) goods and services purchased by ultimate users, as opposed to resale or further processing. 
D) the excess of Canadians exports over Canadians imports. 
A) goods and services which are unsold and therefore added to inventories. 
B) goods and services whose value has been adjusted for changes in the price level. 
C) goods and services purchased by ultimate users, as opposed to resale or further processing. 
D) the excess of Canadians exports over Canadians imports.

Question 5

The table below indicates the price and output data over a five-year period for an economy that produces only one good.   Refer to the above data.If year 2 is the base year, real GDP in year 5 is:

Accepted Answer

A) $120 
B) $90 
C) $60 
D) $30 
A) $120 
B) $90 
C) $60 
D) $30

Question 6

If nominal GDP is 150 and the GDP price index is 200, real GDP is 75.

Accepted Answer

A) True 
 B)False

Question 7

The table below indicates the price and output data over a five-year period for an economy that produces only one good.   Refer to the above data.If year 2 is the base year, the percentage increase in real GDP from year 2 to year 4 is:

Accepted Answer

A) 40 percent. 
B) 60 percent. 
C) 100 percent. 
D) 80 percent. 
A) 40 percent. 
B) 60 percent. 
C) 100 percent. 
D) 80 percent.

Question 8

Profits of private corporations are divided into:

Accepted Answer

A) corporate income taxes, dividends and undistributed corporate profits. 
B) corporate income taxes, investment and distributed corporate profits. 
C) dividends, distributed and undistributed corporate profits. 
D) supplementary labour income, dividends, and distributed corporate profits. 
A) corporate income taxes, dividends and undistributed corporate profits. 
B) corporate income taxes, investment and distributed corporate profits. 
C) dividends, distributed and undistributed corporate profits. 
D) supplementary labour income, dividends, and distributed corporate profits.

Question 9

The table below indicates the price and output data over a five-year period for an economy that produces only one good.   Refer to the above data.If year 3 is chosen as the base year, the price index for year 1:

Accepted Answer

A) is 140. 
B) is 40. 
C) is 167. 
D) is 50. 
A) is 140. 
B) is 40. 
C) is 167. 
D) is 50.

Question 10

Of the countries listed in Image 7.2 Global Perspective the underground economy in 2016 as a percentage of GDP, which country has the highest percentage?

Accepted Answer

A) Sweden 
B) Germany 
C) Canada 
D) United States 
A) Sweden 
B) Germany 
C) Canada 
D) United States

Question 11

Refer to the above diagram.The base year used in determining the price indices for this economy:

Accepted Answer

A) cannot be determined from the information given. 
B) is some year before 1992. 
C) is more recent than 1992. 
D) is 1992. 
A) cannot be determined from the information given. 
B) is some year before 1992. 
C) is more recent than 1992. 
D) is 1992.

Question 12

Refer to the data below.Personal income: All figures are in billions of dollars.

Accepted Answer

A) is $229. 
B) is $253. 
C) is $274. 
D) is $243. 
A) is $229. 
B) is $253. 
C) is $274. 
D) is $243.

Question 13

If depreciation exceeds gross investment:

Accepted Answer

A) the economy's stock of capital may be either growing or shrinking. 
B) the economy's stock of capital is shrinking. 
C) the economy's stock of capital is growing. 
D) net investment is zero. 
A) the economy's stock of capital may be either growing or shrinking. 
B) the economy's stock of capital is shrinking. 
C) the economy's stock of capital is growing. 
D) net investment is zero.

Question 14

GDP excludes most non-market transactions.Therefore, GDP tends to:

Accepted Answer

A) underestimate the rate of inflation in the economy. 
B) overestimate the rate of inflation in the economy. 
C) overestimate the amount of production of the economy. 
D) underestimate the amount of production in the economy. 
A) underestimate the rate of inflation in the economy. 
B) overestimate the rate of inflation in the economy. 
C) overestimate the amount of production of the economy. 
D) underestimate the amount of production in the economy.

Question 15

Using the income approach for calculating GDP, which of the following was the largest contributor to Canada's national income in 2017?

Accepted Answer

A) Employee compensation 
B) Gross operating surplus 
C) Gross mixed income 
D) Taxes 
A) Employee compensation 
B) Gross operating surplus 
C) Gross mixed income 
D) Taxes

Question 16

In national income accounting, G stands for:

Accepted Answer

A) government purchases. 
B) gross investment. 
C) government transfer payments. 
D) gross saving. 
A) government purchases. 
B) gross investment. 
C) government transfer payments. 
D) gross saving.

Question 17

Following is data for a hypothetical economy.The base year is 2002 (Price index = 100).   Refer to the above data.Real GDP in 2006 was approximately:

Accepted Answer

A) $3,433 billion. 
B) $3,743 billion. 
C) $4,023 billion. 
D) $4,031 billion. 
A) $3,433 billion. 
B) $3,743 billion. 
C) $4,023 billion. 
D) $4,031 billion.

Question 18

GDP is the total market value of:

Accepted Answer

A) all expenditures on natural resources, labor, and capital goods in an economy in a given year. 
B) all expenditures on consumption, investment, and net exports in an economy in a given year. 
C) all intermediate goods and services produced in an economy in a given year. 
D) all final goods and services produced in an economy in a given year. 
A) all expenditures on natural resources, labor, and capital goods in an economy in a given year. 
B) all expenditures on consumption, investment, and net exports in an economy in a given year. 
C) all intermediate goods and services produced in an economy in a given year. 
D) all final goods and services produced in an economy in a given year.

Question 19

Answer the question(s) based on the following data, using year 1 as the base year.All dollars are in billions.   Refer to the above data.From year 1 to year 4, prices rose by:

Accepted Answer

A) 4 percent. 
B) 8 percent. 
C) 10 percent. 
D) 12 percent. 
A) 4 percent. 
B) 8 percent. 
C) 10 percent. 
D) 12 percent.

Question 20

The smallest component of aggregate spending in Canada is:

Accepted Answer

A) net exports. 
B) government purchases. 
C) investment. 
D) consumption. 
A) net exports. 
B) government purchases. 
C) investment. 
D) consumption.

Exam 7: Part B: Measuring the Economys Output

Interest and investment income includes:

Disposable income differs from personal income by:

As defined in national income accounting, investment includes:

The term "final goods and services" refers to:

The table below indicates the price and output data over a five-year period for an economy that produces only one good. Refer to the above data.If year 2 is the base year, real GDP in year 5 is:

If nominal GDP is 150 and the GDP price index is 200, real GDP is 75.

The table below indicates the price and output data over a five-year period for an economy that produces only one good. Refer to the above data.If year 2 is the base year, the percentage increase in real GDP from year 2 to year 4 is:

Profits of private corporations are divided into:

The table below indicates the price and output data over a five-year period for an economy that produces only one good. Refer to the above data.If year 3 is chosen as the base year, the price index for year 1:

Of the countries listed in Image 7.2 Global Perspective the underground economy in 2016 as a percentage of GDP, which country has the highest percentage?

Refer to the above diagram.The base year used in determining the price indices for this economy:

Refer to the data below.Personal income: All figures are in billions of dollars.

If depreciation exceeds gross investment:

GDP excludes most non-market transactions.Therefore, GDP tends to:

Using the income approach for calculating GDP, which of the following was the largest contributor to Canada's national income in 2017?

In national income accounting, G stands for:

Following is data for a hypothetical economy.The base year is 2002 (Price index = 100). Refer to the above data.Real GDP in 2006 was approximately:

GDP is the total market value of:

Answer the question(s) based on the following data, using year 1 as the base year.All dollars are in billions. Refer to the above data.From year 1 to year 4, prices rose by:

The smallest component of aggregate spending in Canada is:

Part A: Limits, Alternatives, and Choices

Part B: Limits, Alternatives, and Choices

Part A: The Market System and the Circular Flow

Part B: The Market System and the Circular Flow

Part A: Demand, Supply, and Market Equilibrium

Part B: Demand, Supply, and Market Equilibrium

Part A: Market Failures: Public Goods and Externalities

Part B: Market Failures: Public Goods and Externalities

Part A: Governments Role and Government Failure

Part B: Governments Role and Government Failure

Part A: An Introduction to Macroeconomics

Part B: An Introduction to Macroeconomics

Part A: Measuring the Economys Output

Part A: Economic Growth

Part B: Economic Growth

Part A: Business Cycles, Unemployment, and Inflation

Part B: Business Cycles, Unemployment, and Inflation

Part A: Basic Macroeconomic Relationships

Part B: Basic Macroeconomic Relationships

Part A: The Aggregate Expenditures Model

Part B: The Aggregate Expenditures Model

Part A: Aggregate Demand and Aggregate Supply

Part B: Aggregate Demand and Aggregate Supply

Part A: Fiscal Policy, Deficits, Surpluses, and Debt

Part B: Fiscal Policy, Deficits, Surpluses, and Debt

Part A: Money, Banking, and Money Creation

Part B: Money, Banking, and Money Creation

Part A: Interest Rates and Monetary Policy

Part B: Interest Rates and Monetary Policy

Part A: Long-Run Macroeconomic Adjustments

Part B: Long-Run Macroeconomic Adjustments

Part A: International Trade

Part B: International Trade

Part C: Financial Economics

Part A: The Balance of Payments and Exchange Rates

Part B: The Balance of Payments and Exchange Rates

The Economics of Developing Countries

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