Question 1

Who of the following would be counted as unemployed by Statistics Canada?

Accepted Answer

A)  A person with a part-time job. 
B)  A person with a full-time job. 
C)  A person with no job who is willing to work and had looked for a job in the last four weeks. 
D)  A person with no job who is willing to work and had not looked for a job in two months. 
E)  A retired person. 
A)  A person with a part-time job. 
B)  A person with a full-time job. 
C)  A person with no job who is willing to work and had looked for a job in the last four weeks. 
D)  A person with no job who is willing to work and had not looked for a job in two months. 
E)  A retired person. C

Question 2

Who of the following would be classified as unemployed?

Accepted Answer

A)  Brenda Smith,an 18-year-old full-time university student. 
B)  Mario Faubert,a NHL hockey player at home sick with the flu. 
C)  Jack Little,a 21-year-old new college graduate actively looking for his first job. 
D)  Sarah Lopez,a public school teacher on vacation. 
E)  Amanda Pie,a full-time homemaker. 
A)  Brenda Smith,an 18-year-old full-time university student. 
B)  Mario Faubert,a NHL hockey player at home sick with the flu. 
C)  Jack Little,a 21-year-old new college graduate actively looking for his first job. 
D)  Sarah Lopez,a public school teacher on vacation. 
E)  Amanda Pie,a full-time homemaker. C

Question 3

Which of the following transactions would be included in the GDP of Canada?

Accepted Answer

A)  Honda produces cars in Ontario. 
B)  Bank of Nova Scotia operates a branch in the Bahamas. 
C)  Nortel Corporation produces telecommunications equipment in the United States. 
D)  Microsoft Corporation produces Windows Vista in Redmond,Washington. 
E)  Coca-Cola produces soft drinks in England. 
A)  Honda produces cars in Ontario. 
B)  Bank of Nova Scotia operates a branch in the Bahamas. 
C)  Nortel Corporation produces telecommunications equipment in the United States. 
D)  Microsoft Corporation produces Windows Vista in Redmond,Washington. 
E)  Coca-Cola produces soft drinks in England. A

Question 4

The following table shows the production and prices of an economy's only two goods,TVs and computers,in 2003 and 2009.Assume that 2003 is the base year.
  
-What is real GDP in 2003?

Accepted Answer

A)  $15,000. 
B)  $15,460. 
C)  $27,500. 
D)  $36,750. 
E)  $50,110. 
A)  $15,000. 
B)  $15,460. 
C)  $27,500. 
D)  $36,750. 
E)  $50,110.

Question 5

Private-sector investment includes spending on

Accepted Answer

A)  consumer durable goods. 
B)  new capital goods. 
C)  services. 
D)  stocks and bonds. 
E)  exports. 
A)  consumer durable goods. 
B)  new capital goods. 
C)  services. 
D)  stocks and bonds. 
E)  exports.

Question 6

GDP can be measured as each of the following EXCEPT

Accepted Answer

A)  the market value of production. 
B)  total expenditure on final goods and services. 
C)  incomes of capital and labour. 
D)  total business revenues. 
E)  the sum of value added. 
A)  the market value of production. 
B)  total expenditure on final goods and services. 
C)  incomes of capital and labour. 
D)  total business revenues. 
E)  the sum of value added.

Question 7

Capital income includes

Accepted Answer

A)  profits,rent,and interest. 
B)  wages and salaries. 
C)  earnings of the self-employed. 
D)  capital gains from stock sales. 
E)  transfer payments. 
A)  profits,rent,and interest. 
B)  wages and salaries. 
C)  earnings of the self-employed. 
D)  capital gains from stock sales. 
E)  transfer payments.

Question 8

The total incomes of capital and labour must equal total

Accepted Answer

A)  production. 
B)  profits. 
C)  revenue. 
D)  consumption. 
E)  investment. 
A)  production. 
B)  profits. 
C)  revenue. 
D)  consumption. 
E)  investment.

Question 9

If the value of imports is greater than the value of exports,then

Accepted Answer

A)  net exports are negative. 
B)  net exports are positive. 
C)  net exports are zero. 
D)  net exports are not included in the calculation of GDP. 
E)  net exports cannot be determined from the information provided. 
A)  net exports are negative. 
B)  net exports are positive. 
C)  net exports are zero. 
D)  net exports are not included in the calculation of GDP. 
E)  net exports cannot be determined from the information provided.

Question 10

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are employed in this economy?

Accepted Answer

A)  6 million. 
B)  188 million. 
C)  282 million. 
D)  300 million. 
E)  500 million. 
A)  6 million. 
B)  188 million. 
C)  282 million. 
D)  300 million. 
E)  500 million.

Question 11

Wages and salaries are examples of

Accepted Answer

A)  consumption. 
B)  labour income. 
C)  capital income. 
D)  profits. 
E)  royalties. 
A)  consumption. 
B)  labour income. 
C)  capital income. 
D)  profits. 
E)  royalties.

Question 12

Net exports equal

Accepted Answer

A)  the value added of exports. 
B)  exports minus imports. 
C)  the market value of exports. 
D)  exports plus imports. 
E)  exports minus depreciation. 
A)  the value added of exports. 
B)  exports minus imports. 
C)  the market value of exports. 
D)  exports plus imports. 
E)  exports minus depreciation.

Question 13

The percentage of the working-age population that is employed equals the

Accepted Answer

A)  duration rate. 
B)  labour force. 
C)  employment rate. 
D)  unemployment rate. 
E)  participation ratE. 
A)  duration rate. 
B)  labour force. 
C)  employment rate. 
D)  unemployment rate. 
E)  participation ratE.

Question 14

An economy produces only 1,000,000 computers valued at $2,000 each.Of these,200,000 are sold to consumers,300,000 are sold to businesses,300,000 are sold to the government,and 100,000 are sold abroad.No computers are imported.The unsold computers at the end of the year are held in inventory by the computer manufacturers.What is the value of the private-sector investment component of GDP?

Accepted Answer

A)  $0.3 billion. 
B)  $0.4 billion. 
C)  $0.6 billion. 
D)  $0.7 billion. 
E)  $0.8 billion. 
A)  $0.3 billion. 
B)  $0.4 billion. 
C)  $0.6 billion. 
D)  $0.7 billion. 
E)  $0.8 billion.

Question 15

In recent years,Statistics Canada has released two special (supplementary)unemployment rates that include estimates of the number of discouraged and part-time workers.The official unemployment rate,along with the two supplementary rates,is shown in the chart for the period 1997 to 2006.
  
-The evidence in the chart indicates that the

Accepted Answer

A)  problem of discouraged workers is insignificant. 
B)  problem of part-time workers is insignificant. 
C)  number of part-time workers and discouraged workers is insignificant. 
D)  problem of discouraged workers and part-time workers is fairly significant. 
E)  problem of discouraged workers and part-time workers is decreasing significantly. 
A)  problem of discouraged workers is insignificant. 
B)  problem of part-time workers is insignificant. 
C)  number of part-time workers and discouraged workers is insignificant. 
D)  problem of discouraged workers and part-time workers is fairly significant. 
E)  problem of discouraged workers and part-time workers is decreasing significantly.

Question 16

Which of the following would be included in Canadian gross national product,but NOT in Canadian gross domestic product?

Accepted Answer

A)  The wages paid to American actors filming a TV show in British Columbia. 
B)  The wages paid to Canadian welders working at a Japanese-owned automobile factory in Quebec. 
C)  The profits from a Canadian-owned tourism company located in Nova Scotia. 
D)  The profits from a U.S.-owned automobile factory in Ontario. 
E)  The profits from a Canadian-owned food-processing factory in Michigan. 
A)  The wages paid to American actors filming a TV show in British Columbia. 
B)  The wages paid to Canadian welders working at a Japanese-owned automobile factory in Quebec. 
C)  The profits from a Canadian-owned tourism company located in Nova Scotia. 
D)  The profits from a U.S.-owned automobile factory in Ontario. 
E)  The profits from a Canadian-owned food-processing factory in Michigan.

Question 17

Which of the following categories does NOT correspond approximately to capital income in the GDP accounts?

Accepted Answer

A)  Wages,salaries,and supplementary labour income. 
B)  Corporate and like profits before taxes. 
C)  Net farm and small business income. 
D)  Interest and miscellaneous income. 
E)  Capital consumption allowances. 
A)  Wages,salaries,and supplementary labour income. 
B)  Corporate and like profits before taxes. 
C)  Net farm and small business income. 
D)  Interest and miscellaneous income. 
E)  Capital consumption allowances.

Question 18

Net export spending is expenditures on

Accepted Answer

A)  consumer durables,nondurables,and services. 
B)  stocks,bonds,and other financial instruments. 
C)  capital goods,residential housing,and changes in inventories. 
D)  goods and services by federal,provincial,and local governments. 
E)  goods and services sold abroad minus goods and services produced abroad. 
A)  consumer durables,nondurables,and services. 
B)  stocks,bonds,and other financial instruments. 
C)  capital goods,residential housing,and changes in inventories. 
D)  goods and services by federal,provincial,and local governments. 
E)  goods and services sold abroad minus goods and services produced abroad.

Question 19

People who say that they would like to have a job but have not made an effort to find a job in the past four weeks are called _______ workers.

Accepted Answer

A)  unemployed 
B)  involuntary part-time 
C)  discouraged 
D)  chronically unemployed 
E)  short-term unemployed 
A)  unemployed 
B)  involuntary part-time 
C)  discouraged 
D)  chronically unemployed 
E)  short-term unemployed

Question 20

An economy produces 1,000,000 computers valued at $2,000 each.Households purchase 200,000 computers,of which 100,000 are imported.Businesses purchase 300,000 domestically-produced computers.The government purchases 300,000 domestically-produced computers,and 100,000 domestically-produced computers are sold abroad.The unsold computers at the end of the year are held in inventory by the computer manufacturers.What is the value of the private-sector investment component of GDP?

Accepted Answer

A)  $0.5 billion. 
B)  $0.6 billion. 
C)  $0.8 billion. 
D)  $0.9 billion. 
E)  $1.0 billion. 
A)  $0.5 billion. 
B)  $0.6 billion. 
C)  $0.8 billion. 
D)  $0.9 billion. 
E)  $1.0 billion.

Who of the following would be counted as unemployed by Statistics Canada?

Who of the following would be classified as unemployed?

Which of the following transactions would be included in the GDP of Canada?

The following table shows the production and prices of an economy's only two goods,TVs and computers,in 2003 and 2009.Assume that 2003 is the base year. -What is real GDP in 2003?

Private-sector investment includes spending on

GDP can be measured as each of the following EXCEPT

Capital income includes

The total incomes of capital and labour must equal total

If the value of imports is greater than the value of exports,then

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are employed in this economy?

Wages and salaries are examples of

Net exports equal

The percentage of the working-age population that is employed equals the

Which of the following would be included in Canadian gross national product,but NOT in Canadian gross domestic product?

Which of the following categories does NOT correspond approximately to capital income in the GDP accounts?

Net export spending is expenditures on

People who say that they would like to have a job but have not made an effort to find a job in the past four weeks are called _______ workers.

Measuring Macroeconomic Performance: Output and Prices

Measuring Macroeconomic Performance: Saving and Wealth

Measuring Macroeconomic Performance: Wages, Employment and the Labour Market

Short-Term Economic Fluctuations

Fiscal Policy

Money, Prices and the Reserve Bank

The Reserve Bank and the Economy

The Aggregate Demand - Aggregate Supply Model

Macroeconomic Policy

The Economy in the Long Run: an Introduction to Economic Growth

The Production Function Approach to Understanding Growth

Savings, Capital Formation and Comparative Economic Growth

International Trade

Exchange Rates and the Open Economy

The Balance of Payments: Net Exports and International Capital Flows

Filters

Exam 5: Spending and Output in the Short Run

Who of the following would be counted as unemployed by Statistics Canada?

Who of the following would be classified as unemployed?

Which of the following transactions would be included in the GDP of Canada?

The following table shows the production and prices of an economy's only two goods,TVs and computers,in 2003 and 2009.Assume that 2003 is the base year. -What is real GDP in 2003?

Private-sector investment includes spending on

GDP can be measured as each of the following EXCEPT

Capital income includes

The total incomes of capital and labour must equal total

If the value of imports is greater than the value of exports,then

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are employed in this economy?

Wages and salaries are examples of

Net exports equal

The percentage of the working-age population that is employed equals the

Which of the following would be included in Canadian gross national product,but NOT in Canadian gross domestic product?

Which of the following categories does NOT correspond approximately to capital income in the GDP accounts?

Net export spending is expenditures on

People who say that they would like to have a job but have not made an effort to find a job in the past four weeks are called _______ workers.

Measuring Macroeconomic Performance: Output and Prices

Measuring Macroeconomic Performance: Saving and Wealth

Measuring Macroeconomic Performance: Wages, Employment and the Labour Market

Short-Term Economic Fluctuations

Fiscal Policy

Money, Prices and the Reserve Bank

The Reserve Bank and the Economy

The Aggregate Demand - Aggregate Supply Model

Macroeconomic Policy

The Economy in the Long Run: an Introduction to Economic Growth

The Production Function Approach to Understanding Growth

Savings, Capital Formation and Comparative Economic Growth

International Trade

Exchange Rates and the Open Economy

The Balance of Payments: Net Exports and International Capital Flows

Filters