Question 1

The labour force equals the number of people

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  aged of 15 years and older. 
D)  employed and unemployed. 
E)  employed,unemployed or counted as discouraged workers. 
A)  employed. 
B)  unemployed. 
C)  aged of 15 years and older. 
D)  employed and unemployed. 
E)  employed,unemployed or counted as discouraged workers.

Question 2

One shortcoming of using GDP as a central variable for policy objectives is that it fails to measure

Accepted Answer

A)  growth in productivity. 
B)  increases in the quantity of goods. 
C)  non-market production. 
D)  changes in the price level. 
E)  increases in the number of imported goods. 
A)  growth in productivity. 
B)  increases in the quantity of goods. 
C)  non-market production. 
D)  changes in the price level. 
E)  increases in the number of imported goods.

Question 3

Nominal GDP measures the ________ of production.

Accepted Answer

A)  change in the volume 
B)  physical volume 
C)  current-dollar value 
D)  base-year value 
E)  change in the market value 
A)  change in the volume 
B)  physical volume 
C)  current-dollar value 
D)  base-year value 
E)  change in the market value

Question 4

People who would like to work full time,but are able to find only part-time work,are officially counted as

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  out of the labour force. 
D)  discouraged workers. 
E)  chronically unemployed. 
A)  employed. 
B)  unemployed. 
C)  out of the labour force. 
D)  discouraged workers. 
E)  chronically unemployed.

Question 5

The largest single income component of income-based GDP is

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 6

Consumption expenditures include spending by households on

Accepted Answer

A)  exports. 
B)  inventories. 
C)  residential housing. 
D)  services. 
E)  taxes. 
A)  exports. 
B)  inventories. 
C)  residential housing. 
D)  services. 
E)  taxes.

Question 7

A firm's revenue from selling its product minus the cost of inputs purchased from other firms is called

Accepted Answer

A)  profit. 
B)  investment. 
C)  value added. 
D)  production costs. 
E)  intermediate costs. 
A)  profit. 
B)  investment. 
C)  value added. 
D)  production costs. 
E)  intermediate costs.

Question 8

Suppose that the total production an economy consists of 4 billion oranges and 10 billion candy bars,each orange sells for $0.25,and each candy bar sells for $0.50.What is the market value of production in this economy?

Accepted Answer

A)  $0.75 billion. 
B)  $1 billion. 
C)  $4.5 billion. 
D)  $5 billion. 
E)  $6 billion. 
A)  $0.75 billion. 
B)  $1 billion. 
C)  $4.5 billion. 
D)  $5 billion. 
E)  $6 billion.

Question 9

A measure of GDP in which quantities produced are valued at the prices of a fixed base year is called

Accepted Answer

A)  real GDP. 
B)  nominal GDP. 
C)  base GDP. 
D)  current GDP. 
E)  production GDP. 
A)  real GDP. 
B)  nominal GDP. 
C)  base GDP. 
D)  current GDP. 
E)  production GDP.

Question 10

Which of the following is included when using the income method to measure GDP?

Accepted Answer

A)  Government purchases of goods and services. 
B)  Net exports of goods and services. 
C)  Household consumption expenditures. 
D)  Gross private domestic investment. 
E)  Business profits. 
A)  Government purchases of goods and services. 
B)  Net exports of goods and services. 
C)  Household consumption expenditures. 
D)  Gross private domestic investment. 
E)  Business profits.

Question 11

Government purchases include spending by all levels of government 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)  final goods and services. 
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)  final goods and services. 
E)  goods and services sold abroad minus goods and services produced abroad.

Question 12

If a pizza maker pays $1 for tomatoes,$1 for cheese,$2 for sausage,and sells the pizza made with these ingredients for $7,then each pizza sold contributes how much to GDP?

Accepted Answer

A)  $3. 
B)  $4. 
C)  $7. 
D)  $9. 
E)  $11. 
A)  $3. 
B)  $4. 
C)  $7. 
D)  $9. 
E)  $11.

Question 13

Increasing the length of the workweek in Canada would most likely result in ________ in Canadian GDP and ________ in the well-being of the average Canadian worker.

Accepted Answer

A)  an increase;an increase 
B)  an increase;a decrease 
C)  no change;no change 
D)  a decrease;an increase 
E)  a decrease;a decrease 
A)  an increase;an increase 
B)  an increase;a decrease 
C)  no change;no change 
D)  a decrease;an increase 
E)  a decrease;a decrease

Question 14

Although GDP is not the same as economic well-being,high levels of GDP are positively correlated with all of the following EXCEPT

Accepted Answer

A)  longer life expectancies. 
B)  higher rates of literacy. 
C)  higher material standards of living. 
D)  better health. 
E)  higher rates of infant mortality. 
A)  longer life expectancies. 
B)  higher rates of literacy. 
C)  higher material standards of living. 
D)  better health. 
E)  higher rates of infant mortality.

Question 15

A jar of orange marmalade,ultimately sold to a customer at The Corner Store,is produced by the following production process:
  
-What is the sum of the value added of all the firms?

Accepted Answer

A)  $2.00. 
B)  $2.50. 
C)  $2.75. 
D)  $4.50. 
E)  $5.25. 
A)  $2.00. 
B)  $2.50. 
C)  $2.75. 
D)  $4.50. 
E)  $5.25.

Question 16

A circular flow diagram that includes the government and the foreign sector shows that

Accepted Answer

A)  only Canadian firms provide goods and services. 
B)  only the Canadian government provides goods and services. 
C)  only the foreign sector provides goods and services. 
D)  only Canadian firms and the foreign sector provide goods and services. 
E)  Canadian firms,the Canadian government,and the foreign sector provide goods and services. 
A)  only Canadian firms provide goods and services. 
B)  only the Canadian government provides goods and services. 
C)  only the foreign sector provides goods and services. 
D)  only Canadian firms and the foreign sector provide goods and services. 
E)  Canadian firms,the Canadian government,and the foreign sector provide goods and services.

Question 17

Despite some problems,higher real GDP per person does imply higher living standards,because it tends to be positively associated with

Accepted Answer

A)  crime,pollution,and economic inequality. 
B)  better education,health,and life expectancy. 
C)  poverty,depletion of non-renewable resources,and congestion. 
D)  unemployment,availability of goods and services,and better education. 
E)  the total quantity of goods and services availablE. 
A)  crime,pollution,and economic inequality. 
B)  better education,health,and life expectancy. 
C)  poverty,depletion of non-renewable resources,and congestion. 
D)  unemployment,availability of goods and services,and better education. 
E)  the total quantity of goods and services availablE.

Question 18

Peg's Manicure Manor did 4,000 sets of nails in the year 2011 and 4,500 sets of nails in the year 2012.The price of a set of nails was $20 in 2011 and $22 in 2012.If the year 2011 is the base year,Peg's contribution to real GDP in 2011 was _________ and in 2012 was ________.

Accepted Answer

A)  $80,000;$88,000 
B)  $80,000;$90,000 
C)  $80,000;$99,000 
D)  $88,000;$90,000 
E)  $90,000;$99,000 
A)  $80,000;$88,000 
B)  $80,000;$90,000 
C)  $80,000;$99,000 
D)  $88,000;$90,000 
E)  $90,000;$99,000

Question 19

A jar of DeLux popcorn,ultimately sold to a customer at Friendly Groceries,is produced by the following production process:
  
-What is the value added of Friendly Groceries?

Accepted Answer

A)  $0.50. 
B)  $1.50. 
C)  $2.00. 
D)  $2.50. 
E)  $7.00. 
A)  $0.50. 
B)  $1.50. 
C)  $2.00. 
D)  $2.50. 
E)  $7.00.

Question 20

Data for an economy show that the unemployment rate is 10%,the participation rate is 80%,and 200 million people 15 years or older are not in the labour force.How many people are unemployed this economy?

Accepted Answer

A)  20 million. 
B)  80 million. 
C)  200 million. 
D)  800 million. 
E)  1,000 million. 
A)  20 million. 
B)  80 million. 
C)  200 million. 
D)  800 million. 
E)  1,000 million.

The labour force equals the number of people

One shortcoming of using GDP as a central variable for policy objectives is that it fails to measure

Nominal GDP measures the ________ of production.

People who would like to work full time,but are able to find only part-time work,are officially counted as

The largest single income component of income-based GDP is

Consumption expenditures include spending by households on

A firm's revenue from selling its product minus the cost of inputs purchased from other firms is called

Suppose that the total production an economy consists of 4 billion oranges and 10 billion candy bars,each orange sells for $0.25,and each candy bar sells for $0.50.What is the market value of production in this economy?

A measure of GDP in which quantities produced are valued at the prices of a fixed base year is called

Which of the following is included when using the income method to measure GDP?

Government purchases include spending by all levels of government on

If a pizza maker pays $1 for tomatoes,$1 for cheese,$2 for sausage,and sells the pizza made with these ingredients for $7,then each pizza sold contributes how much to GDP?

Increasing the length of the workweek in Canada would most likely result in in Canadian GDP and in the well-being of the average Canadian worker.

Although GDP is not the same as economic well-being,high levels of GDP are positively correlated with all of the following EXCEPT

A jar of orange marmalade,ultimately sold to a customer at The Corner Store,is produced by the following production process: -What is the sum of the value added of all the firms?

A circular flow diagram that includes the government and the foreign sector shows that

Despite some problems,higher real GDP per person does imply higher living standards,because it tends to be positively associated with

Peg's Manicure Manor did 4,000 sets of nails in the year 2011 and 4,500 sets of nails in the year 2012.The price of a set of nails was $20 in 2011 and $22 in 2012.If the year 2011 is the base year,Peg's contribution to real GDP in 2011 was _ and in 2012 was .

A jar of DeLux popcorn,ultimately sold to a customer at Friendly Groceries,is produced by the following production process: -What is the value added of Friendly Groceries?

Data for an economy show that the unemployment rate is 10%,the participation rate is 80%,and 200 million people 15 years or older are not in the labour force.How many people are unemployed this economy?

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

The labour force equals the number of people

One shortcoming of using GDP as a central variable for policy objectives is that it fails to measure

Nominal GDP measures the ________ of production.

People who would like to work full time,but are able to find only part-time work,are officially counted as

The largest single income component of income-based GDP is

Consumption expenditures include spending by households on

A firm's revenue from selling its product minus the cost of inputs purchased from other firms is called

Suppose that the total production an economy consists of 4 billion oranges and 10 billion candy bars,each orange sells for $0.25,and each candy bar sells for $0.50.What is the market value of production in this economy?

A measure of GDP in which quantities produced are valued at the prices of a fixed base year is called

Which of the following is included when using the income method to measure GDP?

Government purchases include spending by all levels of government on

If a pizza maker pays $1 for tomatoes,$1 for cheese,$2 for sausage,and sells the pizza made with these ingredients for $7,then each pizza sold contributes how much to GDP?

Increasing the length of the workweek in Canada would most likely result in ________ in Canadian GDP and ________ in the well-being of the average Canadian worker.

Although GDP is not the same as economic well-being,high levels of GDP are positively correlated with all of the following EXCEPT

A jar of orange marmalade,ultimately sold to a customer at The Corner Store,is produced by the following production process: -What is the sum of the value added of all the firms?

A circular flow diagram that includes the government and the foreign sector shows that

Despite some problems,higher real GDP per person does imply higher living standards,because it tends to be positively associated with

Peg's Manicure Manor did 4,000 sets of nails in the year 2011 and 4,500 sets of nails in the year 2012.The price of a set of nails was $20 in 2011 and $22 in 2012.If the year 2011 is the base year,Peg's contribution to real GDP in 2011 was _________ and in 2012 was ________.

A jar of DeLux popcorn,ultimately sold to a customer at Friendly Groceries,is produced by the following production process: -What is the value added of Friendly Groceries?

Data for an economy show that the unemployment rate is 10%,the participation rate is 80%,and 200 million people 15 years or older are not in the labour force.How many people are unemployed this economy?

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

Increasing the length of the workweek in Canada would most likely result in in Canadian GDP and in the well-being of the average Canadian worker.

Peg's Manicure Manor did 4,000 sets of nails in the year 2011 and 4,500 sets of nails in the year 2012.The price of a set of nails was $20 in 2011 and $22 in 2012.If the year 2011 is the base year,Peg's contribution to real GDP in 2011 was _ and in 2012 was .