Question 1

Given the following data for an economy,compute the private-sector investment component of GDP.

Accepted Answer

A)  30. 
B)  40. 
C)  60. 
D)  70. 
E)  110. 
A)  30. 
B)  40. 
C)  60. 
D)  70. 
E)  110.

Question 2

Capital consumption allowances correspond to each of the following EXCEPT

Accepted Answer

A)  depreciation. 
B)  fixed capital used up in the production process. 
C)  the difference between gross domestic product and net domestic product. 
D)  the difference between gross domestic product and gross national product. 
E)  capital equipment that has worn out or become obsolete over timE. 
A)  depreciation. 
B)  fixed capital used up in the production process. 
C)  the difference between gross domestic product and net domestic product. 
D)  the difference between gross domestic product and gross national product. 
E)  capital equipment that has worn out or become obsolete over timE.

Question 3

The value of unpaid childcare services provided by a stay-at-home dad ________ included in GDP and the value of daycare services purchased from a licenced childcare provider _______ 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 4

The labour force divided by the working age population equals the

Accepted Answer

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

Question 5

Which of the following is an intermediate good and,therefore,excluded from the calculation of GDP?

Accepted Answer

A)  A set of tires sold to a car owner. 
B)  A loaf of bread purchased by a grocery store. 
C)  100 shares of stock in Microsoft. 
D)  A new home. 
E)  A pre-owned automobilE. 
A)  A set of tires sold to a car owner. 
B)  A loaf of bread purchased by a grocery store. 
C)  100 shares of stock in Microsoft. 
D)  A new home. 
E)  A pre-owned automobilE.

Question 6

Real GDP per capita is positively associated with all of the following EXCEPT

Accepted Answer

A)  more and better goods and services. 
B)  better health and life expectancies. 
C)  better education. 
D)  higher net exports. 
E)  a higher standard of living. 
A)  more and better goods and services. 
B)  better health and life expectancies. 
C)  better education. 
D)  higher net exports. 
E)  a higher standard of living.

Question 7

If the Citrus Growers Association grows $1 million worth of oranges,sells $500,000 worth of oranges to consumers,and uses the rest to make orange juice that is sold to consumers for $3 million,the Citrus Growers' contribution to GDP is

Accepted Answer

A)  $500,000. 
B)  $1,000,000. 
C)  $3,500,000. 
D)  $4,000,000. 
E)  $4,500,000. 
A)  $500,000. 
B)  $1,000,000. 
C)  $3,500,000. 
D)  $4,000,000. 
E)  $4,500,000.

Question 8

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.
  
-Two groups of workers not counted as unemployed in the official unemployment statistics are _______ workers.

Accepted Answer

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

Question 9

Life expectancy is ________ and the probability at birth of surviving to age 65 is ________ in countries with ________ GDP per capita.

Accepted Answer

A)  low;low;high 
B)  high;high;low 
C)  high;high;high 
D)  low;high;low 
E)  high;low;high 
A)  low;low;high 
B)  high;high;low 
C)  high;high;high 
D)  low;high;low 
E)  high;low;high

Question 10

Despite some limitations,________ remains the best available indicator of living standards because it tends to be positively associated with _______________.

Accepted Answer

A)  real GDP;better education,health and life expectancy 
B)  real GDP per person;crime,pollution and income inequality 
C)  real GDP per person;better education,health and life expectancy 
D)  nominal GDP;better education,health and life expectancy 
E)  nominal GDP per person;better education,health and life expectancy 
A)  real GDP;better education,health and life expectancy 
B)  real GDP per person;crime,pollution and income inequality 
C)  real GDP per person;better education,health and life expectancy 
D)  nominal GDP;better education,health and life expectancy 
E)  nominal GDP per person;better education,health and life expectancy

Question 11

An economy produces only 500,000 tables valued at $100 each.Of these,100,000 are sold to consumers,200,000 are sold to businesses,100,000 are sold to the government,and 50,000 are sold abroad.No tables are imported.The unsold tables at the end of the year are held in inventory by the table manufacturers.What is the value of GDP?

Accepted Answer

A)  $5 million. 
B)  $40 million. 
C)  $45 million. 
D)  $50 million. 
E)  $95 million. 
A)  $5 million. 
B)  $40 million. 
C)  $45 million. 
D)  $50 million. 
E)  $95 million.

Question 12

Leaving the labour force or finding a job are two ways that

Accepted Answer

A)  a person can become a discouraged worker. 
B)  a person can become an involuntary part-time worker. 
C)  a period of unemployment can begin. 
D)  a period of unemployment can end. 
E)  unemployment duration can be extended. 
A)  a person can become a discouraged worker. 
B)  a person can become an involuntary part-time worker. 
C)  a period of unemployment can begin. 
D)  a period of unemployment can end. 
E)  unemployment duration can be extended.

Question 13

If Bountiful Orchard grows $100,000 worth of peaches,sells $50,000 worth of peaches to consumers,and uses the rest to make jam that is sold to consumers for $100,000,Bountiful Orchard's contribution to GDP is

Accepted Answer

A)  $50,000. 
B)  $100,000. 
C)  $150,000. 
D)  $200,000. 
E)  $250,000. 
A)  $50,000. 
B)  $100,000. 
C)  $150,000. 
D)  $200,000. 
E)  $250,000.

Question 14

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 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 15

National defence services provided by the military are

Accepted Answer

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

Question 16

Which of the following is NOT a way to express GDP?

Accepted Answer

A)  Total value added. 
B)  The market value of final goods and services. 
C)  Total expenditures on consumption,private-sector investment,government purchases,and net exports. 
D)  Labour income and capital income. 
E)  Total wages paid to workers. 
A)  Total value added. 
B)  The market value of final goods and services. 
C)  Total expenditures on consumption,private-sector investment,government purchases,and net exports. 
D)  Labour income and capital income. 
E)  Total wages paid to workers.

Question 17

To calculate nominal GDP,the quantities of goods and services are valued at prices in the ________ year,but to calculate real GDP,they are valued at prices in the ________ year.

Accepted Answer

A)  current;base 
B)  base;current 
C)  current;current 
D)  base;base 
E)  current;last 
A)  current;base 
B)  base;current 
C)  current;current 
D)  base;base 
E)  current;last

Question 18

In the monthly survey conducted by Statistics Canada,a person who was not working during the previous week and was not actively seeking work during the last four weeks is classified as

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  underemployed. 
D)  part-time employed. 
E)  not a member of the labour forcE. 
A)  employed. 
B)  unemployed. 
C)  underemployed. 
D)  part-time employed. 
E)  not a member of the labour forcE.

Question 19

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 labour force participation rate was

Accepted Answer

A)  70%. 
B)  67%. 
C)  80%. 
D)  57%. 
E)  unable to be calculated from this information. 
A)  70%. 
B)  67%. 
C)  80%. 
D)  57%. 
E)  unable to be calculated from this information.

Question 20

A proposal to increase the age at which people become eligible for government pensions would

Accepted Answer

A)  increase GDP,leaving everything else the same. 
B)  decrease GDP,leaving everything else the same. 
C)  leave GDP unchanged. 
D)  increase GDP at the expense of non-working time. 
E)  increase GDP and non-working timE. 
A)  increase GDP,leaving everything else the same. 
B)  decrease GDP,leaving everything else the same. 
C)  leave GDP unchanged. 
D)  increase GDP at the expense of non-working time. 
E)  increase GDP and non-working timE.

Given the following data for an economy,compute the private-sector investment component of GDP.

Capital consumption allowances correspond to each of the following EXCEPT

The value of unpaid childcare services provided by a stay-at-home dad __ included in GDP and the value of daycare services purchased from a licenced childcare provider _ included in GDP.

The labour force divided by the working age population equals the

Which of the following is an intermediate good and,therefore,excluded from the calculation of GDP?

Real GDP per capita is positively associated with all of the following EXCEPT

If the Citrus Growers Association grows $1 million worth of oranges,sells $500,000 worth of oranges to consumers,and uses the rest to make orange juice that is sold to consumers for $3 million,the Citrus Growers' contribution to GDP is

Life expectancy is and the probability at birth of surviving to age 65 is in countries with GDP per capita.

Despite some limitations, remains the best available indicator of living standards because it tends to be positively associated with _______.

Leaving the labour force or finding a job are two ways that

If Bountiful Orchard grows $100,000 worth of peaches,sells $50,000 worth of peaches to consumers,and uses the rest to make jam that is sold to consumers for $100,000,Bountiful Orchard's contribution to GDP is

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 2009?

National defence services provided by the military are

Which of the following is NOT a way to express GDP?

To calculate nominal GDP,the quantities of goods and services are valued at prices in the year,but to calculate real GDP,they are valued at prices in the year.

In the monthly survey conducted by Statistics Canada,a person who was not working during the previous week and was not actively seeking work during the last four weeks is classified as

A proposal to increase the age at which people become eligible for government pensions would

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

Given the following data for an economy,compute the private-sector investment component of GDP.

Capital consumption allowances correspond to each of the following EXCEPT

The value of unpaid childcare services provided by a stay-at-home dad ________ included in GDP and the value of daycare services purchased from a licenced childcare provider _______ included in GDP.

The labour force divided by the working age population equals the

Which of the following is an intermediate good and,therefore,excluded from the calculation of GDP?

Real GDP per capita is positively associated with all of the following EXCEPT

If the Citrus Growers Association grows $1 million worth of oranges,sells $500,000 worth of oranges to consumers,and uses the rest to make orange juice that is sold to consumers for $3 million,the Citrus Growers' contribution to GDP is

Life expectancy is ________ and the probability at birth of surviving to age 65 is ________ in countries with ________ GDP per capita.

Despite some limitations,________ remains the best available indicator of living standards because it tends to be positively associated with _______________.

Leaving the labour force or finding a job are two ways that

If Bountiful Orchard grows $100,000 worth of peaches,sells $50,000 worth of peaches to consumers,and uses the rest to make jam that is sold to consumers for $100,000,Bountiful Orchard's contribution to GDP is

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 2009?

National defence services provided by the military are

Which of the following is NOT a way to express GDP?

To calculate nominal GDP,the quantities of goods and services are valued at prices in the ________ year,but to calculate real GDP,they are valued at prices in the ________ year.

In the monthly survey conducted by Statistics Canada,a person who was not working during the previous week and was not actively seeking work during the last four weeks is classified as

A proposal to increase the age at which people become eligible for government pensions would

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 childcare services provided by a stay-at-home dad __ included in GDP and the value of daycare services purchased from a licenced childcare provider _ included in GDP.

Life expectancy is and the probability at birth of surviving to age 65 is in countries with GDP per capita.

Despite some limitations, remains the best available indicator of living standards because it tends to be positively associated with _______.

To calculate nominal GDP,the quantities of goods and services are valued at prices in the year,but to calculate real GDP,they are valued at prices in the year.