Question 1

Economic models do all of the following,except

Accepted Answer

A)  simplify some aspect of economic life. 
B)  answer economic questions. 
C)  make economic ideas explicit and concrete for use by decision makers. 
D)  portray reality in all its minute details. 
A)  simplify some aspect of economic life. 
B)  answer economic questions. 
C)  make economic ideas explicit and concrete for use by decision makers. 
D)  portray reality in all its minute details. D

Question 2

Which of the following is a normative economic statement?

Accepted Answer

A)  Income tax revenues decreased during the recession. 
B)  Despite government stimulus spending, the unemployment rate remained above 9% in 2010. 
C)  When the price of gasoline rises, transportation costs rise. 
D)  The government should decrease spending on foreign aid to lower the federal deficit. 
A)  Income tax revenues decreased during the recession. 
B)  Despite government stimulus spending, the unemployment rate remained above 9% in 2010. 
C)  When the price of gasoline rises, transportation costs rise. 
D)  The government should decrease spending on foreign aid to lower the federal deficit. D

Question 3

Labour productivity refers to the quantity of goods and services that can be produced

Accepted Answer

A)  by the entire labour force. 
B)  by one worker or one hour of work. 
C)  in the entire economy in one year. 
D)  by all employed workers. 
A)  by the entire labour force. 
B)  by one worker or one hour of work. 
C)  in the entire economy in one year. 
D)  by all employed workers. B

Question 4

A common measure of the standard of living is

Accepted Answer

A)  labour productivity. 
B)  the average duration of a typical business cycle. 
C)  the labour force participation rate. 
D)  real GDP per capita. 
A)  labour productivity. 
B)  the average duration of a typical business cycle. 
C)  the labour force participation rate. 
D)  real GDP per capita.

Question 5

If you were building a macroeconomic model that explores the effect of the aging population on the needed expenditure for social security and health care,the endogenous variable(s)would be the

Accepted Answer

A)  aging population. 
B)  needed expenditure on social security. 
C)  needed expenditure on health care. 
D)  needed expenditure on both social security and health care. 
A)  aging population. 
B)  needed expenditure on social security. 
C)  needed expenditure on health care. 
D)  needed expenditure on both social security and health care.

Question 6

The labour force is

Accepted Answer

A)  the sum of the employed and unemployed workers in an economy. 
B)  the total number of people in an economy who are over the age of 16. 
C)  the total number of employed people in an economy. 
D)  the percentage of employed people divided by the population. 
A)  the sum of the employed and unemployed workers in an economy. 
B)  the total number of people in an economy who are over the age of 16. 
C)  the total number of employed people in an economy. 
D)  the percentage of employed people divided by the population.

Question 7

In Canada,public spending on health care was approximately ________ of GDP in 2012,and is expected to be approximately ________ of GDP by 2031.

Accepted Answer

A)  12%; 50% 
B)  8%; 13% 
C)  40%; 5% 
D)  25%; 65% 
A)  12%; 50% 
B)  8%; 13% 
C)  40%; 5% 
D)  25%; 65%

Question 8

Which of the following is an example of a monetary policy?

Accepted Answer

A)  The federal government increases income tax rates on people earning more than $250 000. 
B)  The duration of unemployment benefits is extended to 99 weeks. 
C)  The Bank of Canada increases interest rates. 
D)  Congress authorizes a cut in spending on education. 
A)  The federal government increases income tax rates on people earning more than $250 000. 
B)  The duration of unemployment benefits is extended to 99 weeks. 
C)  The Bank of Canada increases interest rates. 
D)  Congress authorizes a cut in spending on education.

Question 9

As a percentage of GDP,Canadian imports have been ________ and U.S.imports have been ________ since 1980.

Accepted Answer

A)  growing; declining 
B)  declining; growing 
C)  growing; growing 
D)  declining; declining 
A)  growing; declining 
B)  declining; growing 
C)  growing; growing 
D)  declining; declining

Question 10

The quantity of goods and services that can be produced by one worker or by one hour of work is known as

Accepted Answer

A)  per-capita GDP. 
B)  labour productivity. 
C)  real domestic output. 
D)  the labour force participation rate. 
A)  per-capita GDP. 
B)  labour productivity. 
C)  real domestic output. 
D)  the labour force participation rate.

Question 11

A hypothesis in an economic model is a statement that ________ about an economic variable.

Accepted Answer

A)  is correct 
B)  is incorrect 
C)  may be either correct or incorrect 
D)  cannot be proven either correct or incorrect 
A)  is correct 
B)  is incorrect 
C)  may be either correct or incorrect 
D)  cannot be proven either correct or incorrect

Question 12

The openness of the Canadian economy has

Accepted Answer

A)  increased over time. 
B)  decreased over time. 
C)  remained fairly consistent over time. 
D)  decreased over the past 30 years, following a 50-year increase. 
A)  increased over time. 
B)  decreased over time. 
C)  remained fairly consistent over time. 
D)  decreased over the past 30 years, following a 50-year increase.

Question 13

From 1950 to 2007,Canada experienced ________ business cycle expansions,followed by ________ recessions.

Accepted Answer

A)  long; long 
B)  long; brief 
C)  brief; long 
D)  brief; brief 
A)  long; long 
B)  long; brief 
C)  brief; long 
D)  brief; brief

Question 14

The underlying fluctuations in real GDP due to the business cycle are reflected by fluctuations in

Accepted Answer

A)  inflation. 
B)  population growth. 
C)  the labour force. 
D)  real GDP per capita. 
A)  inflation. 
B)  population growth. 
C)  the labour force. 
D)  real GDP per capita.

Question 15

Which of the following is a positive economic statement?

Accepted Answer

A)  Income tax rates for the rich should be increased. 
B)  The Bank of Canada should not increase interest rates until the unemployment rate falls below 7%. 
C)  Rising global demand for gasoline has led to an increase in the price of oil. 
D)  The government should increase spending on infrastructure to lower the unemployment rate. 
A)  Income tax rates for the rich should be increased. 
B)  The Bank of Canada should not increase interest rates until the unemployment rate falls below 7%. 
C)  Rising global demand for gasoline has led to an increase in the price of oil. 
D)  The government should increase spending on infrastructure to lower the unemployment rate.

Question 16

Explain what is happening to spending on health care as the Canadian population continues to age.Why might this spending change pose problems for the Canadian economy?

Accepted Answer

Spending on programs such as health care

Question 17

The process by which productivity raises the average standard of living is referred to as

Accepted Answer

A)  long-run economic growth. 
B)  labour productivity. 
C)  population growth analysis. 
D)  the economic prosperity hypothesis. 
A)  long-run economic growth. 
B)  labour productivity. 
C)  population growth analysis. 
D)  the economic prosperity hypothesis.

Question 18

What are the five steps generally used by economists to develop a model?

Accepted Answer

1.Decide on the assumptions to be used i

Question 19

What is monetary policy?

Accepted Answer

Monetary policy refers to the

Question 20

Which of the following is an example of a monetary policy?

Accepted Answer

A)  The federal government decreases income tax rates on people earning less than $40 000. 
B)  The Bank of Canada redesigns the $20 bill. 
C)  The central bank takes action to increase the money supply during an economic recession. 
D)  Congress authorizes an increase in spending on health care. 
A)  The federal government decreases income tax rates on people earning less than $40 000. 
B)  The Bank of Canada redesigns the $20 bill. 
C)  The central bank takes action to increase the money supply during an economic recession. 
D)  Congress authorizes an increase in spending on health care.

Economic models do all of the following,except

Which of the following is a normative economic statement?

Labour productivity refers to the quantity of goods and services that can be produced

A common measure of the standard of living is

If you were building a macroeconomic model that explores the effect of the aging population on the needed expenditure for social security and health care,the endogenous variable(s)would be the

The labour force is

In Canada,public spending on health care was approximately of GDP in 2012,and is expected to be approximately of GDP by 2031.

Which of the following is an example of a monetary policy?

As a percentage of GDP,Canadian imports have been and U.S.imports have been since 1980.

The quantity of goods and services that can be produced by one worker or by one hour of work is known as

A hypothesis in an economic model is a statement that ________ about an economic variable.

The openness of the Canadian economy has

From 1950 to 2007,Canada experienced business cycle expansions,followed by recessions.

The underlying fluctuations in real GDP due to the business cycle are reflected by fluctuations in

Which of the following is a positive economic statement?

Explain what is happening to spending on health care as the Canadian population continues to age.Why might this spending change pose problems for the Canadian economy?

The process by which productivity raises the average standard of living is referred to as

What are the five steps generally used by economists to develop a model?

What is monetary policy?

Which of the following is an example of a monetary policy?

Measuring the Macroeconomy

The Canadian Financial System

Money and Inflation

The Global Financial System and Exchange Rates

The Labour Market

The Standard of Living Over Time and Across Countries

Long-Run Economic Growth

Business Cycles

Explaining Aggregate Demand: the Is-Mp Model

The Is-Mp Model: Adding Inflation and the Open Economy

Monetary Policy in the Short Run

Fiscal Policy in the Short Run

Aggregate Demand, aggregate Supply, and Monetary Policy

Fiscal Policy and the Government Budget in the Long Run

Consumption and Investment

Filters

Exam 1: Introduction to Macroeconomics and the Great Recession

Economic models do all of the following,except

Which of the following is a normative economic statement?

Labour productivity refers to the quantity of goods and services that can be produced

A common measure of the standard of living is

If you were building a macroeconomic model that explores the effect of the aging population on the needed expenditure for social security and health care,the endogenous variable(s)would be the

The labour force is

In Canada,public spending on health care was approximately ________ of GDP in 2012,and is expected to be approximately ________ of GDP by 2031.

Which of the following is an example of a monetary policy?

As a percentage of GDP,Canadian imports have been ________ and U.S.imports have been ________ since 1980.

The quantity of goods and services that can be produced by one worker or by one hour of work is known as

A hypothesis in an economic model is a statement that ________ about an economic variable.

The openness of the Canadian economy has

From 1950 to 2007,Canada experienced ________ business cycle expansions,followed by ________ recessions.

The underlying fluctuations in real GDP due to the business cycle are reflected by fluctuations in

Which of the following is a positive economic statement?

Explain what is happening to spending on health care as the Canadian population continues to age.Why might this spending change pose problems for the Canadian economy?

The process by which productivity raises the average standard of living is referred to as

What are the five steps generally used by economists to develop a model?

What is monetary policy?

Which of the following is an example of a monetary policy?

Measuring the Macroeconomy

The Canadian Financial System

Money and Inflation

The Global Financial System and Exchange Rates

The Labour Market

The Standard of Living Over Time and Across Countries

Long-Run Economic Growth

Business Cycles

Explaining Aggregate Demand: the Is-Mp Model

The Is-Mp Model: Adding Inflation and the Open Economy

Monetary Policy in the Short Run

Fiscal Policy in the Short Run

Aggregate Demand, aggregate Supply, and Monetary Policy

Fiscal Policy and the Government Budget in the Long Run

Consumption and Investment

Filters

In Canada,public spending on health care was approximately of GDP in 2012,and is expected to be approximately of GDP by 2031.

As a percentage of GDP,Canadian imports have been and U.S.imports have been since 1980.

From 1950 to 2007,Canada experienced business cycle expansions,followed by recessions.