Question 1

Economists from the Bank of Canada estimated that the CPI _____ inflation by approximately _____ percentage point(s) per year.

Accepted Answer

A) overestimates; one-half of one percentage point to one 
B) overestimates; one to two 
C) underestimates; one-half of one percentage point to one 
D) underestimates; one to two 
A) overestimates; one-half of one percentage point to one 
B) overestimates; one to two 
C) underestimates; one-half of one percentage point to one 
D) underestimates; one to two

Question 2

If an increasing proportion of the adult population is retired, then the labour-force participation rate:

Accepted Answer

A) will increase. 
B) will decrease. 
C) will remain constant. 
D) may increase, decrease, or remain constant. 
A) will increase. 
B) will decrease. 
C) will remain constant. 
D) may increase, decrease, or remain constant.

Question 3

Nominal GDP means the value of goods and services is measured in _____ prices.

Accepted Answer

A) current 
B) real 
C) constant 
D) average 
A) current 
B) real 
C) constant 
D) average

Question 4

According to the usual seasonal pattern of the Canadian economy, GDP is highest in the quarter of the year that includes:

Accepted Answer

A) January, February, and March. 
B) April, May, and June. 
C) July, August, and September. 
D) October, November, and December. 
A) January, February, and March. 
B) April, May, and June. 
C) July, August, and September. 
D) October, November, and December.

Question 5

If GDP measured in billions of current dollars is $5,465 and the sum of consumption, investment, and government purchases is $5,496, while exports equal $673, imports are:

Accepted Answer

A) $673. 
B) -$673. 
C) $704. 
D) -$704. 
A) $673. 
B) -$673. 
C) $704. 
D) -$704.

Question 6

A woman marries her butler. Before they were married, she paid him $60,000 per year. He continues to wait on her as before (but as a husband rather than as a wage earner). She earns $1 million per year both before and after her marriage. The marriage:

Accepted Answer

A) does not change GDP. 
B) decreases GDP by $60,000. 
C) increases GDP by $60,000. 
D) increases GDP by more than $60,000. 
A) does not change GDP. 
B) decreases GDP by $60,000. 
C) increases GDP by $60,000. 
D) increases GDP by more than $60,000.

Question 7

In the national income accounts, net exports equal:

Accepted Answer

A) exported goods minus imported goods. 
B) exported goods and services minus imported goods and services. 
C) exported goods minus imported services. 
D) exported goods and services plus imported goods and services. 
A) exported goods minus imported goods. 
B) exported goods and services minus imported goods and services. 
C) exported goods minus imported services. 
D) exported goods and services plus imported goods and services.

Question 8

All of the following transactions that took place in 2009 would be included in GDP for 2009 except the purchase of a:

Accepted Answer

A) book titled The Year 3000 that was printed in 2009. 
B) 2001 Jeep Cherokee. 
C) year 2010 calendar printed in 2009. 
D) ticket to see the movie 2001. 
A) book titled The Year 3000 that was printed in 2009. 
B) 2001 Jeep Cherokee. 
C) year 2010 calendar printed in 2009. 
D) ticket to see the movie 2001.

Question 9

If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is $741, and net exports are -$1,910, then government purchases are:

Accepted Answer

A) $2,977. 
B) $1,910. 
C) -$843. 
D) $1,067. 
A) $2,977. 
B) $1,910. 
C) -$843. 
D) $1,067.

Question 10

The largest component of national income is:

Accepted Answer

A) corporate profits. 
B) compensation of employees. 
C) nonincorporated business. 
D) net interest. 
A) corporate profits. 
B) compensation of employees. 
C) nonincorporated business. 
D) net interest.

Question 11

The labour-force participation rate is the percentage of the:

Accepted Answer

A) adult population that is employed. 
B) adult population that is in the labour force. 
C) labour force that is employed. 
D) labour force that is unemployed. 
A) adult population that is employed. 
B) adult population that is in the labour force. 
C) labour force that is employed. 
D) labour force that is unemployed.

Question 12

In the national income accounts, government purchases are goods and services purchased by:

Accepted Answer

A) the federal government. 
B) the federal and provincial governments. 
C) the provincial and municipal governments. 
D) the federal, provincial, and municipal governments. 
A) the federal government. 
B) the federal and provincial governments. 
C) the provincial and municipal governments. 
D) the federal, provincial, and municipal governments.

Question 13

If the unemployment rate is 10 percent and the number of employed is 20 million, then the labour force equals _____ million.

Accepted Answer

A) 20.2 
B) 30.4 
C) 18.8 
D) 22.2 
A) 20.2 
B) 30.4 
C) 18.8 
D) 22.2

Question 14

The total income of everyone in the economy is exactly equal to the total:

Accepted Answer

A) expenditure on the economy's output of goods and services. 
B) consumption expenditures of everyone in the economy. 
C) expenditures of all businesses in the economy. 
D) government expenditures. 
A) expenditure on the economy's output of goods and services. 
B) consumption expenditures of everyone in the economy. 
C) expenditures of all businesses in the economy. 
D) government expenditures.

Question 15

If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is $741, and government purchases are $1,098, then net exports are:

Accepted Answer

A) $131. 
B) -$131. 
C) $31. 
D) -$31. 
A) $131. 
B) -$131. 
C) $31. 
D) -$31.

Question 16

Assume that a rancher sells McDonald's a quarter-pound of meat for $1 and that McDonald's sells you a hamburger made from that meat for $2. In this case, GDP increases by:

Accepted Answer

A) $0.50. 
B) $1. 
C) $2. 
D) $3. 
A) $0.50. 
B) $1. 
C) $2. 
D) $3.

Question 17

Assume that total output consists of 4 apples and 6 oranges and that apples cost $1 each and oranges cost $0.50 each. In this case, the value of GDP is:

Accepted Answer

A) 10 pieces of fruit. 
B) $7. 
C) $8. 
D) $10. 
A) 10 pieces of fruit. 
B) $7. 
C) $8. 
D) $10.

Question 18

Net national product equals GNP:

Accepted Answer

A) plus net investment. 
B) minus net investment. 
C) plus depreciation. 
D) minus depreciation. 
A) plus net investment. 
B) minus net investment. 
C) plus depreciation. 
D) minus depreciation.

Question 19

A worker with two jobs is counted:

Accepted Answer

A) once in both the Labour Force survey and the Survey of Employment, Payroll, and Hours. 
B) once in the Labour Force survey, but twice in the Survey of Employment, Payroll, and Hours. 
C) once in the Survey of Employment, Payroll, and Hours, but twice in the Labour Force survey. 
D) twice in both the Labour Force survey and the Survey of Employment, Payroll, and Hours. 
A) once in both the Labour Force survey and the Survey of Employment, Payroll, and Hours. 
B) once in the Labour Force survey, but twice in the Survey of Employment, Payroll, and Hours. 
C) once in the Survey of Employment, Payroll, and Hours, but twice in the Labour Force survey. 
D) twice in both the Labour Force survey and the Survey of Employment, Payroll, and Hours.

Question 20

In the national income accounts, goods bought for future use are classified as which type of expenditure?

Accepted Answer

A) services 
B) investment 
C) government purchases 
D) net exports 
A) services 
B) investment 
C) government purchases 
D) net exports

Economists from the Bank of Canada estimated that the CPI _ inflation by approximately _ percentage point(s) per year.

If an increasing proportion of the adult population is retired, then the labour-force participation rate:

Nominal GDP means the value of goods and services is measured in _____ prices.

According to the usual seasonal pattern of the Canadian economy, GDP is highest in the quarter of the year that includes:

If GDP measured in billions of current dollars is $5,465 and the sum of consumption, investment, and government purchases is $5,496, while exports equal $673, imports are:

A woman marries her butler. Before they were married, she paid him $60,000 per year. He continues to wait on her as before (but as a husband rather than as a wage earner). She earns $1 million per year both before and after her marriage. The marriage:

In the national income accounts, net exports equal:

All of the following transactions that took place in 2009 would be included in GDP for 2009 except the purchase of a:

If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is $741, and net exports are -$1,910, then government purchases are:

The largest component of national income is:

The labour-force participation rate is the percentage of the:

In the national income accounts, government purchases are goods and services purchased by:

If the unemployment rate is 10 percent and the number of employed is 20 million, then the labour force equals _____ million.

The total income of everyone in the economy is exactly equal to the total:

If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is $741, and government purchases are $1,098, then net exports are:

Assume that a rancher sells McDonald's a quarter-pound of meat for $1 and that McDonald's sells you a hamburger made from that meat for $2. In this case, GDP increases by:

Assume that total output consists of 4 apples and 6 oranges and that apples cost $1 each and oranges cost $0.50 each. In this case, the value of GDP is:

Net national product equals GNP:

A worker with two jobs is counted:

In the national income accounts, goods bought for future use are classified as which type of expenditure?

The Science of Macroeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labour Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Islm Model

Aggregate Demand Ii: Applying the Islm Model

The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

The Microfoundations of Consumption and Investment

Filters

Exam 2: The Data of Microeconomics

Economists from the Bank of Canada estimated that the CPI _____ inflation by approximately _____ percentage point(s) per year.

If an increasing proportion of the adult population is retired, then the labour-force participation rate:

Nominal GDP means the value of goods and services is measured in _____ prices.

According to the usual seasonal pattern of the Canadian economy, GDP is highest in the quarter of the year that includes:

If GDP measured in billions of current dollars is $5,465 and the sum of consumption, investment, and government purchases is $5,496, while exports equal $673, imports are:

A woman marries her butler. Before they were married, she paid him $60,000 per year. He continues to wait on her as before (but as a husband rather than as a wage earner). She earns $1 million per year both before and after her marriage. The marriage:

In the national income accounts, net exports equal:

All of the following transactions that took place in 2009 would be included in GDP for 2009 except the purchase of a:

If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is $741, and net exports are -$1,910, then government purchases are:

The largest component of national income is:

The labour-force participation rate is the percentage of the:

In the national income accounts, government purchases are goods and services purchased by:

If the unemployment rate is 10 percent and the number of employed is 20 million, then the labour force equals _____ million.

The total income of everyone in the economy is exactly equal to the total:

If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is $741, and government purchases are $1,098, then net exports are:

Assume that a rancher sells McDonald's a quarter-pound of meat for $1 and that McDonald's sells you a hamburger made from that meat for $2. In this case, GDP increases by:

Assume that total output consists of 4 apples and 6 oranges and that apples cost $1 each and oranges cost $0.50 each. In this case, the value of GDP is:

Net national product equals GNP:

A worker with two jobs is counted:

In the national income accounts, goods bought for future use are classified as which type of expenditure?

The Science of Macroeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labour Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Islm Model

Aggregate Demand Ii: Applying the Islm Model

The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

The Microfoundations of Consumption and Investment

Filters

Economists from the Bank of Canada estimated that the CPI _ inflation by approximately _ percentage point(s) per year.