Question 1

Table 5-1
  
-Refer to Table 5-1. What is the disposable personal income for this economy?

Accepted Answer

A) $119 
B) $154 
C) $164 
D) $170 
A) $119 
B) $154 
C) $164 
D) $170

Question 2

For which of the following purposes do economists use the tools of supply and demand?

Accepted Answer

A) for analyzing individual markets, but not the overall economy 
B) for analyzing a small firm's decision making 
C) for analyzing a consumer's decision making 
D) for analyzing individual markets as well as the economy as a whole 
A) for analyzing individual markets, but not the overall economy 
B) for analyzing a small firm's decision making 
C) for analyzing a consumer's decision making 
D) for analyzing individual markets as well as the economy as a whole

Question 3

Table 5-3.
Prices and Quantities
  
-Refer to Table 5-3. Using 2009 as the base year, what can we conclude for 2008?

Accepted Answer

A) Real GDP is $760 and the GDP deflator is 100. 
B) Real GDP is $760 and the GDP deflator is 125. 
C) Real GDP is $880 and the GDP deflator is 80. 
D) Real GDP is $950 and the GDP deflator is 80. 
A) Real GDP is $760 and the GDP deflator is 100. 
B) Real GDP is $760 and the GDP deflator is 125. 
C) Real GDP is $880 and the GDP deflator is 80. 
D) Real GDP is $950 and the GDP deflator is 80.

Question 4

What is the income that households and non-corporate businesses receive called?

Accepted Answer

A) disposable personal income 
B) proprietors' income 
C) national income 
D) personal income 
A) disposable personal income 
B) proprietors' income 
C) national income 
D) personal income

Question 5

How is GDP computed?

Accepted Answer

A) Add up the quantities of all final goods and services. 
B) Add up the cost of producing final goods and services. 
C) Use weights determined by a survey regarding how much people value different sorts of goods and services to compute GDP as a weighted average. 
D) Add up the market values of all final goods and services produced within a country in a given period of time. 
A) Add up the quantities of all final goods and services. 
B) Add up the cost of producing final goods and services. 
C) Use weights determined by a survey regarding how much people value different sorts of goods and services to compute GDP as a weighted average. 
D) Add up the market values of all final goods and services produced within a country in a given period of time.

Question 6

The information below was reported by the World Bank. On the basis of this information, which
list below contains the correct ordering of GDP per person from highest to lowest?
  
-The information below was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of GDP per person from highest to lowest?

Accepted Answer

A) Japan, Switzerland, United States 
B) Japan, United States, Switzerland 
C) United States, Switzerland, Japan 
D) United States, Japan, Switzerland 
A) Japan, Switzerland, United States 
B) Japan, United States, Switzerland 
C) United States, Switzerland, Japan 
D) United States, Japan, Switzerland

Question 7

Which of these will increase Canadian net exports?

Accepted Answer

A) A Canadian resident buys a skateboard manufactured in Canada by a German firm. 
B) A US resident buys a Blackberry manufactured in Canada. 
C) A Canadian resident buys a souvenir in Paris. 
D) A Canadian resident buys Microsoft stock. 
A) A Canadian resident buys a skateboard manufactured in Canada by a German firm. 
B) A US resident buys a Blackberry manufactured in Canada. 
C) A Canadian resident buys a souvenir in Paris. 
D) A Canadian resident buys Microsoft stock.

Question 8

How does the value of total sales of all firms in the country for a year compare with GDP?

Accepted Answer

A) It equals GDP for the year. 
B) It is larger than GDP for the year. 
C) It is smaller than GDP for the year. 
D) It could be larger or smaller than GDP for the year. 
A) It equals GDP for the year. 
B) It is larger than GDP for the year. 
C) It is smaller than GDP for the year. 
D) It could be larger or smaller than GDP for the year.

Question 9

If a Canadian household buys a $75 handbag in Italy, Canadian consumption increases by $75. What happens to Canadian imports/exports and GDP?

Accepted Answer

A) Canadian imports increase by $75, and Canadian GDP increases by $75. 
B) Canadian imports increase by $75, but Canadian GDP is unaffected. 
C) Canadian imports are unaffected, and Canadian GDP is unaffected. 
D) Canadian exports increase by $75, and Canadian GDP increases by $75. 
A) Canadian imports increase by $75, and Canadian GDP increases by $75. 
B) Canadian imports increase by $75, but Canadian GDP is unaffected. 
C) Canadian imports are unaffected, and Canadian GDP is unaffected. 
D) Canadian exports increase by $75, and Canadian GDP increases by $75.

Question 10

Macroeconomic statistics include the inflation rate, the unemployment rate, GDP, and retail sales.

Accepted Answer

A) True 
 B)False

Question 11

National income differs from net national product in that it includes business subsidies. Which of the following does national income exclude, as opposed to net national product?

Accepted Answer

A) profits of corporations 
B) indirect business taxes 
C) retained earnings of corporations 
D) depreciation 
A) profits of corporations 
B) indirect business taxes 
C) retained earnings of corporations 
D) depreciation

Question 12

Which of the following best describes the evolution of Canadian economy over the past decades?

Accepted Answer

A) Real GDP grew on average about 3 percent per year from 1970 to 2006. 
B) Real GDP was approximately constant over the past decades. 
C) The growth of real GDP has been steady over time. 
D) There were no recessions over the period 1970 to 2005. 
A) Real GDP grew on average about 3 percent per year from 1970 to 2006. 
B) Real GDP was approximately constant over the past decades. 
C) The growth of real GDP has been steady over time. 
D) There were no recessions over the period 1970 to 2005.

Question 13

Which of the following is included in the consumption component of GDP?

Accepted Answer

A) CPP/QPP payments 
B) purchases of foreign goods and services 
C) purchases of newly constructed homes 
D) goods produced, but not sold during the reference period 
A) CPP/QPP payments 
B) purchases of foreign goods and services 
C) purchases of newly constructed homes 
D) goods produced, but not sold during the reference period

Question 14

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

Accepted Answer

A) purchases of previously owned homes 
B) purchases of government bonds 
C) purchases of new cars 
D) changes in inventory 
A) purchases of previously owned homes 
B) purchases of government bonds 
C) purchases of new cars 
D) changes in inventory

Question 15

A firm produces consumer goods and adds some to inventory in the third quarter. In the fourth quarter the firm sells the goods at a retail outlet, leaving the firm's inventory diminished. As a result of these actions, what component(s) of GDP change in the fourth quarter?

Accepted Answer

A) only investment and it decreases 
B) only consumption and it increases 
C) investment decreases and consumption increases 
D) neither investment nor consumption changes 
A) only investment and it decreases 
B) only consumption and it increases 
C) investment decreases and consumption increases 
D) neither investment nor consumption changes

Question 16

What do macroeconomists study?

Accepted Answer

A) decisions of households and firms 
B) economy-wide phenomena 
C) the interaction of households and firms in markets 
D) regulations of firms and unions 
A) decisions of households and firms 
B) economy-wide phenomena 
C) the interaction of households and firms in markets 
D) regulations of firms and unions

Question 17

How is flour treated in GDP terms?

Accepted Answer

A) It is counted as an intermediate good. 
B) It is counted as an intermediate good if it is used by a company to make bread. 
C) It is counted as a final good if it is used by a consumer who bakes bread for his own consumption. 
D) It is counted as a final good. 
A) It is counted as an intermediate good. 
B) It is counted as an intermediate good if it is used by a company to make bread. 
C) It is counted as a final good if it is used by a consumer who bakes bread for his own consumption. 
D) It is counted as a final good.

Question 18

What is the goal of macroeconomics?

Accepted Answer

A) to explain how economic changes affect prices of particular goods 
B) to devise policies to deal with market failures, such as externalities and monopoly 
C) to explain changes that affect households and firms in general 
D) to explain how income taxes influence labour supply 
A) to explain how economic changes affect prices of particular goods 
B) to devise policies to deal with market failures, such as externalities and monopoly 
C) to explain changes that affect households and firms in general 
D) to explain how income taxes influence labour supply

Question 19

Table 5-3.
Prices and Quantities
  
-Refer to Table 5-3. Using the GDP deflator to measure the average level of prices and using 2006 as the base year, what is the economy's inflation rate?

Accepted Answer

A) 20 percent for 2009 and 12.5 percent for 2010 
B) 20 percent for 2009 and 30 percent for 2010 
C) 25 percent for 2009 and 28 percent for 2010 
D) 44.7 percent for 2009 and 45.5 for 2010 
A) 20 percent for 2009 and 12.5 percent for 2010 
B) 20 percent for 2009 and 30 percent for 2010 
C) 25 percent for 2009 and 28 percent for 2010 
D) 44.7 percent for 2009 and 45.5 for 2010

Question 20

Which of the following best describes the evolution of Canadian economy over the past decades?

Accepted Answer

A) Real GDP in 2006 was less than three times its level in 1970. 
B) The output of goods and services grew on average about 1 percent per year from 1970 to 2006. 
C) Real GDP was approximately constant over the past decades, only prices have increased. 
D) Continued growth in real GDP has allowed an improvement in Canadians' standard of living. 
A) Real GDP in 2006 was less than three times its level in 1970. 
B) The output of goods and services grew on average about 1 percent per year from 1970 to 2006. 
C) Real GDP was approximately constant over the past decades, only prices have increased. 
D) Continued growth in real GDP has allowed an improvement in Canadians' standard of living.

Table 5-1 -Refer to Table 5-1. What is the disposable personal income for this economy?

For which of the following purposes do economists use the tools of supply and demand?

Table 5-3. Prices and Quantities -Refer to Table 5-3. Using 2009 as the base year, what can we conclude for 2008?

What is the income that households and non-corporate businesses receive called?

How is GDP computed?

Which of these will increase Canadian net exports?

How does the value of total sales of all firms in the country for a year compare with GDP?

If a Canadian household buys a $75 handbag in Italy, Canadian consumption increases by $75. What happens to Canadian imports/exports and GDP?

Macroeconomic statistics include the inflation rate, the unemployment rate, GDP, and retail sales.

National income differs from net national product in that it includes business subsidies. Which of the following does national income exclude, as opposed to net national product?

Which of the following best describes the evolution of Canadian economy over the past decades?

Which of the following is included in the consumption component of GDP?

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

A firm produces consumer goods and adds some to inventory in the third quarter. In the fourth quarter the firm sells the goods at a retail outlet, leaving the firm's inventory diminished. As a result of these actions, what component(s) of GDP change in the fourth quarter?

What do macroeconomists study?

How is flour treated in GDP terms?

What is the goal of macroeconomics?

Table 5-3. Prices and Quantities -Refer to Table 5-3. Using the GDP deflator to measure the average level of prices and using 2006 as the base year, what is the economy's inflation rate?

Which of the following best describes the evolution of Canadian economy over the past decades?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 5: Measuring a Nations Income

Table 5-1 -Refer to Table 5-1. What is the disposable personal income for this economy?

For which of the following purposes do economists use the tools of supply and demand?

Table 5-3. Prices and Quantities -Refer to Table 5-3. Using 2009 as the base year, what can we conclude for 2008?

What is the income that households and non-corporate businesses receive called?

How is GDP computed?

Which of these will increase Canadian net exports?

How does the value of total sales of all firms in the country for a year compare with GDP?

If a Canadian household buys a $75 handbag in Italy, Canadian consumption increases by $75. What happens to Canadian imports/exports and GDP?

Macroeconomic statistics include the inflation rate, the unemployment rate, GDP, and retail sales.

National income differs from net national product in that it includes business subsidies. Which of the following does national income exclude, as opposed to net national product?

Which of the following best describes the evolution of Canadian economy over the past decades?

Which of the following is included in the consumption component of GDP?

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

A firm produces consumer goods and adds some to inventory in the third quarter. In the fourth quarter the firm sells the goods at a retail outlet, leaving the firm's inventory diminished. As a result of these actions, what component(s) of GDP change in the fourth quarter?

What do macroeconomists study?

How is flour treated in GDP terms?

What is the goal of macroeconomics?

Table 5-3. Prices and Quantities -Refer to Table 5-3. Using the GDP deflator to measure the average level of prices and using 2006 as the base year, what is the economy's inflation rate?

Which of the following best describes the evolution of Canadian economy over the past decades?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters