Question 1

Discouraged workers are

Accepted Answer

A)  chronically unemployed. 
B)  involuntary part-time workers. 
C)  short-term unemployed workers. 
D)  not counted as unemployed. 
E)  long-term unemployed workers. 
A)  chronically unemployed. 
B)  involuntary part-time workers. 
C)  short-term unemployed workers. 
D)  not counted as unemployed. 
E)  long-term unemployed workers.

Question 2

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 employed in this economy?

Accepted Answer

A)  18 million. 
B)  180 million. 
C)  720 million. 
D)  792 million. 
E)  800 million. 
A)  18 million. 
B)  180 million. 
C)  720 million. 
D)  792 million. 
E)  800 million.

Question 3

Government purchases include all of the following EXCEPT

Accepted Answer

A)  pension benefits paid by the federal government. 
B)  the construction of a new courthouse built by a local government. 
C)  the salary paid to an elementary school teacher employed by a local public school board. 
D)  the purchase of new military hardware by the Canadian Forces. 
E)  the construction of new highways by provincial governments. 
A)  pension benefits paid by the federal government. 
B)  the construction of a new courthouse built by a local government. 
C)  the salary paid to an elementary school teacher employed by a local public school board. 
D)  the purchase of new military hardware by the Canadian Forces. 
E)  the construction of new highways by provincial governments.

Question 4

The market value of final goods and services produced within a country during a period of time is called

Accepted Answer

A)  guaranteed direct prices. 
B)  general domestic productivity. 
C)  government documented production. 
D)  gross domestic product. 
E)  growth determined profit. 
A)  guaranteed direct prices. 
B)  general domestic productivity. 
C)  government documented production. 
D)  gross domestic product. 
E)  growth determined profit.

Question 5

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 in the labour force in this economy?

Accepted Answer

A)  80 million. 
B)  200 million. 
C)  800 million. 
D)  1,000 million. 
E)  1,600 million. 
A)  80 million. 
B)  200 million. 
C)  800 million. 
D)  1,000 million. 
E)  1,600 million.

Question 6

Private-sector investment includes spending on

Accepted Answer

A)  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)  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 7

The index of economic well-being includes all of the following EXCEPT

Accepted Answer

A)  per-capita consumption. 
B)  societal accumulation of stocks of productive resources. 
C)  income distribution. 
D)  economic security. 
E)  exports to developing countries. 
A)  per-capita consumption. 
B)  societal accumulation of stocks of productive resources. 
C)  income distribution. 
D)  economic security. 
E)  exports to developing countries.

Question 8

Given the following data for an economy,compute the value of GDP.
Consumption expenditures
1000
Imports
600
Government purchases of goods and services
700
Construction of new homes and apartments
500
Sales of existing homes and apartments
600
Exports
500
Government payments to retirees
200
Household purchases of durable goods
300
Beginning-of-year business inventory
500
End-of-year business inventory
600
Business fixed investment
300

Accepted Answer

A)  2,400. 
B)  2,500. 
C)  2,600. 
D)  2,700. 
E)  5,600. 
A)  2,400. 
B)  2,500. 
C)  2,600. 
D)  2,700. 
E)  5,600.

Question 9

The value of unpaid work by a homemaker _________ included in GDP and value of housekeeping services sold in the market _________ included in GDP.

Accepted Answer

A)  is;is not 
B)  is;is 
C)  is not;is not 
D)  is not;is 
E)  is sometimes;is 
A)  is;is not 
B)  is;is 
C)  is not;is not 
D)  is not;is 
E)  is sometimes;is

Question 10

A cost of unemployment typically borne by society at large rather than the unemployed themselves is

Accepted Answer

A)  lost income. 
B)  lost tax revenue. 
C)  lost self esteem. 
D)  lost job skills. 
E)  feelings of loss of control over one's lifE. 
A)  lost income. 
B)  lost tax revenue. 
C)  lost self esteem. 
D)  lost job skills. 
E)  feelings of loss of control over one's lifE.

Question 11

Suppose that 300 of the current "Not in the Labour Force" category are actually "discouraged" workers.Critics have argued that,since discouraged workers want to work but have given up looking,they should rightly be counted as unemployed.If discouraged workers are counted as unemployed,Wonderland's labour force would be __________,and the adjusted unemployment rate would be __________ percentage points higher than the official unemployment rate.

Accepted Answer

A)  16,527;1.7 
B)  17,221;2.5 
C)  15,356;0.5 
D)  20,022;3.5 
E)  18,000;2.7 
A)  16,527;1.7 
B)  17,221;2.5 
C)  15,356;0.5 
D)  20,022;3.5 
E)  18,000;2.7

Question 12

The participation rate is the number of people

Accepted Answer

A)  employed and unemployed. 
B)  employed divided by the labour force. 
C)  employed divided by the population aged 15 years and older. 
D)  employed and unemployed divided by the labour force. 
E)  employed and unemployed divided by the population aged 15 years and older. 
A)  employed and unemployed. 
B)  employed divided by the labour force. 
C)  employed divided by the population aged 15 years and older. 
D)  employed and unemployed divided by the labour force. 
E)  employed and unemployed divided by the population aged 15 years and older.

Question 13

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 2012 was _________ and to nominal GDP in 2012 was ________.

Accepted Answer

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

Question 14

Which of the following would be included in Canada's GDP?

Accepted Answer

A)  Bombardier builds a plane in Montreal that is sold to American Airlines. 
B)  Daimler-Chrysler produces a car in Germany that is sold in Toronto. 
C)  Nestlé produces a candy bar in Switzerland that is sold in Calgary. 
D)  Royal Bank of Canada operates a branch in Nassau,Bahamas. 
E)  Canada's Wonderland provides entertainment services in an amusement park in Japan. 
A)  Bombardier builds a plane in Montreal that is sold to American Airlines. 
B)  Daimler-Chrysler produces a car in Germany that is sold in Toronto. 
C)  Nestlé produces a candy bar in Switzerland that is sold in Calgary. 
D)  Royal Bank of Canada operates a branch in Nassau,Bahamas. 
E)  Canada's Wonderland provides entertainment services in an amusement park in Japan.

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 accuracy of Canada's official unemployment rate is criticized because

Accepted Answer

A)  unemployed homemakers and students who are not actively seeking employment are not included in the number of unemployed people. 
B)  people who would like to work but have given up trying to find work are not included in the number of unemployed people. 
C)  it fails to indicate how many people work at more than one job. 
D)  people under 15 years of age and over 65 years of age are excluded from the data. 
E)  the Statistics Canada survey does not include all the households in Canada. 
A)  unemployed homemakers and students who are not actively seeking employment are not included in the number of unemployed people. 
B)  people who would like to work but have given up trying to find work are not included in the number of unemployed people. 
C)  it fails to indicate how many people work at more than one job. 
D)  people under 15 years of age and over 65 years of age are excluded from the data. 
E)  the Statistics Canada survey does not include all the households in Canada.

Question 16

Educational services provided by public schools are

Accepted Answer

A)  included in GDP at market prices. 
B)  excluded from GDP because they are not sold in markets. 
C)  excluded from GDP because they are intermediate goods. 
D)  excluded from GDP because they are publicly provided. 
E)  included in GDP at cost. 
A)  included in GDP at market prices. 
B)  excluded from GDP because they are not sold in markets. 
C)  excluded from GDP because they are intermediate goods. 
D)  excluded from GDP because they are publicly provided. 
E)  included in GDP at cost.

Question 17

The official unemployment rate is calculated as

Accepted Answer

A)  the number of working-age people 15 years or older who are employed divided by the number of people in the labour force. 
B)  all people 18 years of age or older who are employed,plus all those unemployed who are actively seeking work. 
C)  the percentage of the working-age population 15 years or older who are not working but are actively seeking work. 
D)  the number of people 15 years or older that are not employed and are actively seeking work divided by the number of people in the labour force. 
E)  all people 15 years of age or older who are employed,plus all those unemployed who are actively seeking work divided by the number of people in the labour forcE. 
A)  the number of working-age people 15 years or older who are employed divided by the number of people in the labour force. 
B)  all people 18 years of age or older who are employed,plus all those unemployed who are actively seeking work. 
C)  the percentage of the working-age population 15 years or older who are not working but are actively seeking work. 
D)  the number of people 15 years or older that are not employed and are actively seeking work divided by the number of people in the labour force. 
E)  all people 15 years of age or older who are employed,plus all those unemployed who are actively seeking work divided by the number of people in the labour forcE.

Question 18

Which of the expenditure components of GDP can be negative?

Accepted Answer

A)  Consumption spending on durables. 
B)  Consumption spending on services. 
C)  Business fixed investment. 
D)  Government purchases of goods and services. 
E)  Net exports. 
A)  Consumption spending on durables. 
B)  Consumption spending on services. 
C)  Business fixed investment. 
D)  Government purchases of goods and services. 
E)  Net exports.

Question 19

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 GDP?

Accepted Answer

A)  $0.9 billion. 
B)  $1.0 billion. 
C)  $1.8 billion. 
D)  $2.0 billion. 
E)  $3.8 billion. 
A)  $0.9 billion. 
B)  $1.0 billion. 
C)  $1.8 billion. 
D)  $2.0 billion. 
E)  $3.8 billion.

Question 20

A proposal to relax environmental regulations must

Accepted Answer

A)  be assessed by comparing costs and benefits. 
B)  be assessed by determining the amount by which GDP would therefore increase. 
C)  be assessed by determining the amount by which GDP would therefore decrease. 
D)  never be considered. 
E)  always be approved. 
A)  be assessed by comparing costs and benefits. 
B)  be assessed by determining the amount by which GDP would therefore increase. 
C)  be assessed by determining the amount by which GDP would therefore decrease. 
D)  never be considered. 
E)  always be approved.

Discouraged workers are

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 employed in this economy?

Government purchases include all of the following EXCEPT

The market value of final goods and services produced within a country during a period of time is called

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 in the labour force in this economy?

Private-sector investment includes spending on

The index of economic well-being includes all of the following EXCEPT

The value of unpaid work by a homemaker _ included in GDP and value of housekeeping services sold in the market _ included in GDP.

A cost of unemployment typically borne by society at large rather than the unemployed themselves is

The participation rate is the number of people

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 2012 was _ and to nominal GDP in 2012 was .

Which of the following would be included in Canada's GDP?

Educational services provided by public schools are

The official unemployment rate is calculated as

Which of the expenditure components of GDP can be negative?

A proposal to relax environmental regulations must

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

Discouraged workers are

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 employed in this economy?

Government purchases include all of the following EXCEPT

The market value of final goods and services produced within a country during a period of time is called

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 in the labour force in this economy?

Private-sector investment includes spending on

The index of economic well-being includes all of the following EXCEPT

The value of unpaid work by a homemaker _________ included in GDP and value of housekeeping services sold in the market _________ included in GDP.

A cost of unemployment typically borne by society at large rather than the unemployed themselves is

The participation rate is the number of people

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 2012 was _________ and to nominal GDP in 2012 was ________.

Which of the following would be included in Canada's GDP?

Educational services provided by public schools are

The official unemployment rate is calculated as

Which of the expenditure components of GDP can be negative?

A proposal to relax environmental regulations must

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

The value of unpaid work by a homemaker _ included in GDP and value of housekeeping services sold in the market _ included in GDP.

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 2012 was _ and to nominal GDP in 2012 was .