Question 1

Private-sector investment does NOT include which of the following?

Accepted Answer

A)  Purchases of new capital goods by firms. 
B)  Purchases of new houses by families. 
C)  Purchases of new apartment buildings by landlords. 
D)  Inventory investment by firms. 
E)  Purchases of stocks and bonds by households and firms. 
A)  Purchases of new capital goods by firms. 
B)  Purchases of new houses by families. 
C)  Purchases of new apartment buildings by landlords. 
D)  Inventory investment by firms. 
E)  Purchases of stocks and bonds by households and firms.

Question 2

Suppose that the total production of an economy consists of 10 billion oranges and 5 billion candy bars,each orange sells for $0.20,and each candy bar sells for $1.00.What is the market value of production in this economy?

Accepted Answer

A)  $1 billion. 
B)  $2 billion. 
C)  $5 billion. 
D)  $7 billion. 
E)  $11 billion. 
A)  $1 billion. 
B)  $2 billion. 
C)  $5 billion. 
D)  $7 billion. 
E)  $11 billion.

Question 3

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 participation rate?

Accepted Answer

A)  5%. 
B)  57%. 
C)  75%. 
D)  60%. 
E)  95%. 
A)  5%. 
B)  57%. 
C)  75%. 
D)  60%. 
E)  95%.

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 nominal 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

Goods and services that are used up in the production of other goods and services 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 6

-Refer to the table above.What is consumption in this economy?

Accepted Answer

A)  $4.0 million. 
B)  $4.8 million. 
C)  $4.9 million. 
D)  There is not sufficient information to calculate consumption. 
E)  $5.2 million. 
A)  $4.0 million. 
B)  $4.8 million. 
C)  $4.9 million. 
D)  There is not sufficient information to calculate consumption. 
E)  $5.2 million.

Question 7

-Refer to the table above.The sum of private-sector investment and consumption in this economy is

Accepted Answer

A)  $4.0 million. 
B)  $4.8 million. 
C)  $4.9 million. 
D)  indeterminate given the above information. 
E)  $5.2 million. 
A)  $4.0 million. 
B)  $4.8 million. 
C)  $4.9 million. 
D)  indeterminate given the above information. 
E)  $5.2 million.

Question 8

Who of the following would be classified as out of the labour force?

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 week. 
D)  A person with no job who is willing to work and had not looked for a job in two months. 
E)  A person on vacation from a regular job. 
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 week. 
D)  A person with no job who is willing to work and had not looked for a job in two months. 
E)  A person on vacation from a regular job.

Question 9

The four components of aggregate expenditures are

Accepted Answer

A)  consumption,imports,government purchases,and net exports. 
B)  consumption,interest payments,government purchases,and net exports. 
C)  consumer durables,private-sector investment,government purchases,and net exports. 
D)  consumption,imports,government purchases,and exports. 
E)  consumption,private-sector investment,government purchases,and net exports. 
A)  consumption,imports,government purchases,and net exports. 
B)  consumption,interest payments,government purchases,and net exports. 
C)  consumer durables,private-sector investment,government purchases,and net exports. 
D)  consumption,imports,government purchases,and exports. 
E)  consumption,private-sector investment,government purchases,and net exports.

Question 10

The value of goods produced,but unsold,in the current period is

Accepted Answer

A)  excluded from GDP. 
B)  counted in GDP as inventory investment. 
C)  counted in GDP as consumption spending. 
D)  counted in GDP as services. 
E)  allocated to GDP in future periods. 
A)  excluded from GDP. 
B)  counted in GDP as inventory investment. 
C)  counted in GDP as consumption spending. 
D)  counted in GDP as services. 
E)  allocated to GDP in future periods.

Question 11

In a small town of 100 people,there are 10 children under 15,10 retired people,60 people with full-time jobs,3 people with part-time jobs,3 full-time students aged 15 and over,and 4 full-time homemakers.The remaining people do not have jobs,but want them.All but one of these has actively looked for a job in the last four weeks.What is the participation rate in this town?

Accepted Answer

A)  63.0%. 
B)  71.1%. 
C)  72.0%. 
D)  80.0%. 
E)  87.5%. 
A)  63.0%. 
B)  71.1%. 
C)  72.0%. 
D)  80.0%. 
E)  87.5%.

Question 12

Which of the following would increase the private-sector investment component of Canada's GDP?

Accepted Answer

A)  You purchase a new washing machine produced in Canada. 
B)  You purchase a new washing machine produced in France. 
C)  A laundry in Calgary purchases a new washing machine produced in Canada. 
D)  A laundry in Mexico purchases a new washing machine produced in Canada. 
E)  The Canadian government purchases a new washing machine produced in Canada for rangers to use in a Canadian national park. 
A)  You purchase a new washing machine produced in Canada. 
B)  You purchase a new washing machine produced in France. 
C)  A laundry in Calgary purchases a new washing machine produced in Canada. 
D)  A laundry in Mexico purchases a new washing machine produced in Canada. 
E)  The Canadian government purchases a new washing machine produced in Canada for rangers to use in a Canadian national park.

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,Wonderland's unemployment rate was

Accepted Answer

A)  7%. 
B)  10%. 
C)  14%. 
D)  5%. 
E)  unable to be calculated from this information. 
A)  7%. 
B)  10%. 
C)  14%. 
D)  5%. 
E)  unable to be calculated from this information.

Question 14

Increasing the production and sale of Canada's natural resources will ________ GDP and ________ the value of the resources.

Accepted Answer

A)  increase;increase 
B)  increase;decrease 
C)  increase;not change 
D)  not change;increase 
E)  decrease;decrease 
A)  increase;increase 
B)  increase;decrease 
C)  increase;not change 
D)  not change;increase 
E)  decrease;decrease

Question 15

If substantially more foreign investment income comes into Brazil than leaves Brazil,then it is most likely that

Accepted Answer

A)  Brazilian net foreign investment income is negative. 
B)  Brazilian net foreign investment income is zero. 
C)  Brazilian GDP exceeds Brazilian GNP. 
D)  Brazilian GNP exceeds Brazilian GDP. 
E)  Brazilian GNP equals Brazilian GDP. 
A)  Brazilian net foreign investment income is negative. 
B)  Brazilian net foreign investment income is zero. 
C)  Brazilian GDP exceeds Brazilian GNP. 
D)  Brazilian GNP exceeds Brazilian GDP. 
E)  Brazilian GNP equals Brazilian GDP.

Question 16

Real GDP is measured in ______ prices and nominal GDP is measured in _______ prices.

Accepted Answer

A)  current;base-year 
B)  base-year;current 
C)  current;current 
D)  base-year;base-year 
E)  current;market 
A)  current;base-year 
B)  base-year;current 
C)  current;current 
D)  base-year;base-year 
E)  current;market

Question 17

Bradley is a university graduate interested in finding full-time employment in his area of specialty.After looking for several weeks,Bradley is discouraged and begins to work three days a week as a lawn care worker in the neighbourhood.Bradley would be classified as

Accepted Answer

A)  a discouraged worker. 
B)  involuntarily unemployed. 
C)  employed. 
D)  seasonally unemployed. 
E)  not in the labour forcE. 
A)  a discouraged worker. 
B)  involuntarily unemployed. 
C)  employed. 
D)  seasonally unemployed. 
E)  not in the labour forcE.

Question 18

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

Accepted Answer

A)  The wages paid to Canadian actors working in the film industry in California. 
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 Canadian actors working in the film industry in California. 
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 19

Life expectancy is higher in ________ compared to ________.

Accepted Answer

A)  the OECD countries;the least developed countries 
B)  the least developed countries;the OECD countries 
C)  the developing countries;the OECD countries 
D)  the least developed countries;Canada 
E)  the developing countries;Canada 
A)  the OECD countries;the least developed countries 
B)  the least developed countries;the OECD countries 
C)  the developing countries;the OECD countries 
D)  the least developed countries;Canada 
E)  the developing countries;Canada

Question 20

Which of the following would increase the private-sector investment component of Canada's GDP?

Accepted Answer

A)  You purchase a vacation at Disney World in Florida. 
B)  You purchase shares of Disney stock. 
C)  Hertz Canada purchases tires from a firm in Mississauga,Ontario for its fleet of rental cars. 
D)  A French man purchases a vacation at a winter resort in France. 
E)  A French child purchases mouse ears made in California at a Disney theme park in FrancE. 
A)  You purchase a vacation at Disney World in Florida. 
B)  You purchase shares of Disney stock. 
C)  Hertz Canada purchases tires from a firm in Mississauga,Ontario for its fleet of rental cars. 
D)  A French man purchases a vacation at a winter resort in France. 
E)  A French child purchases mouse ears made in California at a Disney theme park in FrancE.

Private-sector investment does NOT include which of the following?

Suppose that the total production of an economy consists of 10 billion oranges and 5 billion candy bars,each orange sells for $0.20,and each candy bar sells for $1.00.What is the market value of production in this economy?

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 participation rate?

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 2003?

Goods and services that are used up in the production of other goods and services are called _________ goods and services.

-Refer to the table above.What is consumption in this economy?

-Refer to the table above.The sum of private-sector investment and consumption in this economy is

Who of the following would be classified as out of the labour force?

The four components of aggregate expenditures are

The value of goods produced,but unsold,in the current period is

Which of the following would increase the private-sector investment component of Canada's GDP?

Increasing the production and sale of Canada's natural resources will GDP and the value of the resources.

If substantially more foreign investment income comes into Brazil than leaves Brazil,then it is most likely that

Real GDP is measured in prices and nominal GDP is measured in _ prices.

Bradley is a university graduate interested in finding full-time employment in his area of specialty.After looking for several weeks,Bradley is discouraged and begins to work three days a week as a lawn care worker in the neighbourhood.Bradley would be classified as

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

Life expectancy is higher in compared to .

Which of the following would increase the private-sector investment component of Canada's GDP?

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

Private-sector investment does NOT include which of the following?

Suppose that the total production of an economy consists of 10 billion oranges and 5 billion candy bars,each orange sells for $0.20,and each candy bar sells for $1.00.What is the market value of production in this economy?

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 participation rate?

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 2003?

Goods and services that are used up in the production of other goods and services are called _________ goods and services.

-Refer to the table above.What is consumption in this economy?

-Refer to the table above.The sum of private-sector investment and consumption in this economy is

Who of the following would be classified as out of the labour force?

The four components of aggregate expenditures are

The value of goods produced,but unsold,in the current period is

Which of the following would increase the private-sector investment component of Canada's GDP?

Increasing the production and sale of Canada's natural resources will ________ GDP and ________ the value of the resources.

If substantially more foreign investment income comes into Brazil than leaves Brazil,then it is most likely that

Real GDP is measured in ______ prices and nominal GDP is measured in _______ prices.

Bradley is a university graduate interested in finding full-time employment in his area of specialty.After looking for several weeks,Bradley is discouraged and begins to work three days a week as a lawn care worker in the neighbourhood.Bradley would be classified as

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

Life expectancy is higher in ________ compared to ________.

Which of the following would increase the private-sector investment component of Canada's GDP?

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 production and sale of Canada's natural resources will GDP and the value of the resources.

Real GDP is measured in prices and nominal GDP is measured in _ prices.

Life expectancy is higher in compared to .