Question 1

A measure of the price level of the goods and services included in GDP is

Accepted Answer

A)  the GDP deflator. 
B)  the CPI. 
C)  nominal GDP. 
D)  the GDP multiplier. 
E)  real GDP. 
A)  the GDP deflator. 
B)  the CPI. 
C)  nominal GDP. 
D)  the GDP multiplier. 
E)  real GDP.

Question 2

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 in the labour force in this economy?

Accepted Answer

A)  80 million. 
B)  120 million. 
C)  200 million. 
D)  300 million. 
E)  500 million. 
A)  80 million. 
B)  120 million. 
C)  200 million. 
D)  300 million. 
E)  500 million.

Question 3

Real GDP measures ________ but not ________.

Accepted Answer

A)  output;well-being 
B)  well-being;output 
C)  output;goods and services produced 
D)  goods and services produced;output 
E)  well-being;goods and services produced 
A)  output;well-being 
B)  well-being;output 
C)  output;goods and services produced 
D)  goods and services produced;output 
E)  well-being;goods and services produced

Question 4

Goods and services that are consumed by the ultimate user are called ________ goods and services.

Accepted Answer

A)  intermediate 
B)  final 
C)  value added 
D)  nominal 
E)  real 
A)  intermediate 
B)  final 
C)  value added 
D)  nominal 
E)  real

Question 5

A measure of GDP in which the quantities produced are valued at current-year prices is called

Accepted Answer

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

Question 6

In a country with 20 million people aged 15 years and older,12 million in the labour force,and 11.4 million employed,what is the unemployment rate?

Accepted Answer

A)  3%. 
B)  4%. 
C)  5%. 
D)  6%. 
E)  7%. 
A)  3%. 
B)  4%. 
C)  5%. 
D)  6%. 
E)  7%.

Question 7

A circular flow diagram that includes the government and the foreign sector shows that the role of the Canadian government is

Accepted Answer

A)  only to provide services to households and firms. 
B)  only to collect net taxes from households and firms. 
C)  only to purchase goods and services. 
D)  both to provide services and to collect net taxes from households and firms. 
E)  to provide services to,and collect net taxes from,households and firms,and to purchase goods and services. 
A)  only to provide services to households and firms. 
B)  only to collect net taxes from households and firms. 
C)  only to purchase goods and services. 
D)  both to provide services and to collect net taxes from households and firms. 
E)  to provide services to,and collect net taxes from,households and firms,and to purchase goods and services.

Question 8

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

Accepted Answer

A)  $0.00. 
B)  $0.50. 
C)  $0.75. 
D)  $1.25. 
E)  $2.00. 
A)  $0.00. 
B)  $0.50. 
C)  $0.75. 
D)  $1.25. 
E)  $2.00.

Question 9

The largest expenditure component of Canada's GDP is

Accepted Answer

A)  consumption. 
B)  private-sector investment. 
C)  government purchases. 
D)  exports. 
E)  imports. 
A)  consumption. 
B)  private-sector investment. 
C)  government purchases. 
D)  exports. 
E)  imports.

Question 10

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

Accepted Answer

A)  $0.00. 
B)  $0.50. 
C)  $0.75. 
D)  $1.25. 
E)  $2.00. 
A)  $0.00. 
B)  $0.50. 
C)  $0.75. 
D)  $1.25. 
E)  $2.00.

Question 11

The unemployment rate equals the number of people

Accepted Answer

A)  unemployed. 
B)  unemployed divided by the number employed. 
C)  unemployed divided by the labour force. 
D)  unemployed plus discouraged workers divided by the labour force. 
E)  unemployed plus discouraged workers divided by the number employed. 
A)  unemployed. 
B)  unemployed divided by the number employed. 
C)  unemployed divided by the labour force. 
D)  unemployed plus discouraged workers divided by the labour force. 
E)  unemployed plus discouraged workers divided by the number employed.

Question 12

When economists use market values to aggregate output,they sum the

Accepted Answer

A)  number of items produced. 
B)  quantity of items produced. 
C)  price multiplied by the quantity of items produced. 
D)  social value of items produced. 
E)  amount of each item produced. 
A)  number of items produced. 
B)  quantity of items produced. 
C)  price multiplied by the quantity of items produced. 
D)  social value of items produced. 
E)  amount of each item produced.

Question 13

The table provides labour force data for the country of Wonderland in June 2012.(Assume that the Labour Force Survey categories in Wonderland are the same as those used by Statistics Canada,and that the data refer to the population 15 years of age and over. )
  
-In June 2012,the number of people in Wonderland who were 15 years of age and older was

Accepted Answer

A)  8,090. 
B)  16,227. 
C)  24,317. 
D)  20,000. 
E)  unable to be calculated from this information. 
A)  8,090. 
B)  16,227. 
C)  24,317. 
D)  20,000. 
E)  unable to be calculated from this information.

Question 14

An economy produces 500,000 tables valued at $100 each.Households purchase 100,000 tables,of which 50,000 are imported.Businesses purchase 200,000 domestically-produced tables.The government purchases 100,000 domestically-produced tables,and 50,000 domestically-produced tables are sold abroad.The unsold tables at the end of the year are held in inventory by the table manufacturers.What is the value of the private-sector investment component of GDP?

Accepted Answer

A)  $10 billion. 
B)  $20 million. 
C)  $25 million. 
D)  $30 million. 
E)  $50 million. 
A)  $10 billion. 
B)  $20 million. 
C)  $25 million. 
D)  $30 million. 
E)  $50 million.

Question 15

According to the circular flow of income and expenditure through the economy,which of the following is FALSE?

Accepted Answer

A)  Sum of incomes = sum of expenditures. 
B)  Sum of incomes = sum of value added. 
C)  Sum of expenditures = sum of value added. 
D)  Sum of incomes = sum of expenditures = sum of value added. 
E)  Sum of value added = sum of savings. 
A)  Sum of incomes = sum of expenditures. 
B)  Sum of incomes = sum of value added. 
C)  Sum of expenditures = sum of value added. 
D)  Sum of incomes = sum of expenditures = sum of value added. 
E)  Sum of value added = sum of savings.

Question 16

Gross domestic product (GDP)equals the ________ of final ________ produced within a country during a given period of time.

Accepted Answer

A)  market value;goods 
B)  market value;services 
C)  market value;goods and services 
D)  quantity;goods 
E)  quantity;goods and services 
A)  market value;goods 
B)  market value;services 
C)  market value;goods and services 
D)  quantity;goods 
E)  quantity;goods and services

Question 17

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 nominal GDP in 2009?

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 18

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.
  
-The GDP deflator for 2003 is

Accepted Answer

A)  100. 
B)  103. 
C)  134. 
D)  178. 
E)  183. 
A)  100. 
B)  103. 
C)  134. 
D)  178. 
E)  183.

Question 19

In the year 2012,Janice Quinn sells a five-year-old car to Used Car Inc.for $3,000.In the same year,Used Car Inc.resells the car to Ima Goner for $3,500.What is the contribution of this transaction to GDP in the year 2012?

Accepted Answer

A)  $0. 
B)  $500. 
C)  $3,000. 
D)  $3,500. 
E)  $6,500. 
A)  $0. 
B)  $500. 
C)  $3,000. 
D)  $3,500. 
E)  $6,500.

Question 20

Total spending on final goods and services in an economy must equal the total value of

Accepted Answer

A)  profits. 
B)  production. 
C)  revenues from all transactions. 
D)  consumption. 
E)  investment. 
A)  profits. 
B)  production. 
C)  revenues from all transactions. 
D)  consumption. 
E)  investment.

A measure of the price level of the goods and services included in GDP is

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 in the labour force in this economy?

Real GDP measures but not .

Goods and services that are consumed by the ultimate user are called ________ goods and services.

A measure of GDP in which the quantities produced are valued at current-year prices is called

In a country with 20 million people aged 15 years and older,12 million in the labour force,and 11.4 million employed,what is the unemployment rate?

A circular flow diagram that includes the government and the foreign sector shows that the role of the Canadian government is

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

The largest expenditure component of Canada's GDP is

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

The unemployment rate equals the number of people

When economists use market values to aggregate output,they sum the

According to the circular flow of income and expenditure through the economy,which of the following is FALSE?

Gross domestic product (GDP)equals the of final produced within a country during a given period of time.

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 nominal GDP in 2009?

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. -The GDP deflator for 2003 is

In the year 2012,Janice Quinn sells a five-year-old car to Used Car Inc.for $3,000.In the same year,Used Car Inc.resells the car to Ima Goner for $3,500.What is the contribution of this transaction to GDP in the year 2012?

Total spending on final goods and services in an economy must equal the total value of

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

A measure of the price level of the goods and services included in GDP is

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 in the labour force in this economy?

Real GDP measures ________ but not ________.

Goods and services that are consumed by the ultimate user are called ________ goods and services.

A measure of GDP in which the quantities produced are valued at current-year prices is called

In a country with 20 million people aged 15 years and older,12 million in the labour force,and 11.4 million employed,what is the unemployment rate?

A circular flow diagram that includes the government and the foreign sector shows that the role of the Canadian government is

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

The largest expenditure component of Canada's GDP is

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

The unemployment rate equals the number of people

When economists use market values to aggregate output,they sum the

According to the circular flow of income and expenditure through the economy,which of the following is FALSE?

Gross domestic product (GDP)equals the ________ of final ________ produced within a country during a given period of time.

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 nominal GDP in 2009?

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. -The GDP deflator for 2003 is

In the year 2012,Janice Quinn sells a five-year-old car to Used Car Inc.for $3,000.In the same year,Used Car Inc.resells the car to Ima Goner for $3,500.What is the contribution of this transaction to GDP in the year 2012?

Total spending on final goods and services in an economy must equal the total value of

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

Real GDP measures but not .

Gross domestic product (GDP)equals the of final produced within a country during a given period of time.