Question 1

Intermediate goods and services are ________ production and ________ counted in GDP.

Accepted Answer

A)  the end product of;are 
B)  the end product of;are not 
C)  used up in the process of;are 
D)  used up in the process of;are not 
E)  the ultimate purpose of;are 
A)  the end product of;are 
B)  the end product of;are not 
C)  used up in the process of;are 
D)  used up in the process of;are not 
E)  the ultimate purpose of;are

Question 2

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

Accepted Answer

A)  only to produce and sell goods and services. 
B)  only to hire labour. 
C)  only to pay with net taxes for services from the government. 
D)  both to produce and sell goods and services,and to hire labour. 
E)  to produce and sell goods and services,to hire labour,and to pay with net taxes for services from the government. 
A)  only to produce and sell goods and services. 
B)  only to hire labour. 
C)  only to pay with net taxes for services from the government. 
D)  both to produce and sell goods and services,and to hire labour. 
E)  to produce and sell goods and services,to hire labour,and to pay with net taxes for services from the government.

Question 3

The number of people unemployed divided by the labour force equals the

Accepted Answer

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

Question 4

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

Accepted Answer

A)  Corporate profits. 
B)  Gross private-sector investment. 
C)  Capital income. 
D)  Net interest on the government debt. 
E)  Labour incomE. 
A)  Corporate profits. 
B)  Gross private-sector investment. 
C)  Capital income. 
D)  Net interest on the government debt. 
E)  Labour incomE.

Question 5

A fundamental difficulty with many proposals to increase GDP is that these proposals

Accepted Answer

A)  attempt to increase GDP at the expense of other things people value. 
B)  attempt to increase GDP and other things people care about. 
C)  are made by vested interest groups. 
D)  are made by non-economists. 
E)  do not recognize the problem of scarcity. 
A)  attempt to increase GDP at the expense of other things people value. 
B)  attempt to increase GDP and other things people care about. 
C)  are made by vested interest groups. 
D)  are made by non-economists. 
E)  do not recognize the problem of scarcity.

Question 6

Given the following data for an economy,compute the value of GDP.

Accepted Answer

A)  130. 
B)  140. 
C)  150. 
D)  160. 
E)  320. 
A)  130. 
B)  140. 
C)  150. 
D)  160. 
E)  320.

Question 7

The government purchases component of GDP includes

Accepted Answer

A)  purchases of final goods and services. 
B)  interest payments on government debt. 
C)  transfer payments. 
D)  pensions paid to government workers. 
E)  payments made to social security recipients. 
A)  purchases of final goods and services. 
B)  interest payments on government debt. 
C)  transfer payments. 
D)  pensions paid to government workers. 
E)  payments made to social security recipients.

Question 8

Consumption spending 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 9

Which of the following would increase the net export component of Canada's GDP?

Accepted Answer

A)  A car produced in Japan is purchased in British Columbia. 
B)  A bottle of British Columbia wine is purchased in California. 
C)  A bottle of French wine is purchased in Quebec. 
D)  A car produced in Cambridge,Ontario is purchased in Winnipeg,Manitoba. 
E)  A bottle of French wine is purchased in London,England. 
A)  A car produced in Japan is purchased in British Columbia. 
B)  A bottle of British Columbia wine is purchased in California. 
C)  A bottle of French wine is purchased in Quebec. 
D)  A car produced in Cambridge,Ontario is purchased in Winnipeg,Manitoba. 
E)  A bottle of French wine is purchased in London,England.

Question 10

Factories and machines are examples of

Accepted Answer

A)  consumption goods. 
B)  non-market goods. 
C)  value-added goods. 
D)  publicly provided goods. 
E)  capital goods. 
A)  consumption goods. 
B)  non-market goods. 
C)  value-added goods. 
D)  publicly provided goods. 
E)  capital goods.

Question 11

Consumption expenditure is subdivided into four categories,including

Accepted Answer

A)  durables,nondurables,services and new homes. 
B)  durables,nondurables,semi-durables,and new homes. 
C)  durables,nondurables,semi-durables,and services. 
D)  durables,nondurables,exports and imports. 
E)  durables,nondurables,net exports and services. 
A)  durables,nondurables,services and new homes. 
B)  durables,nondurables,semi-durables,and new homes. 
C)  durables,nondurables,semi-durables,and services. 
D)  durables,nondurables,exports and imports. 
E)  durables,nondurables,net exports and services.

Question 12

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

Accepted Answer

A)  Brenda Smith,an 18-year-old university student employed part-time at a fast food restaurant. 
B)  Mario Faubert,a NHL hockey player at home sick with the flu. 
C)  Jack Little,a 21-year-old new college graduate actively looking for his first job. 
D)  Sarah Lopez,a public school teacher on vacation. 
E)  Amanda Pie,a full-time homemaker. 
A)  Brenda Smith,an 18-year-old university student employed part-time at a fast food restaurant. 
B)  Mario Faubert,a NHL hockey player at home sick with the flu. 
C)  Jack Little,a 21-year-old new college graduate actively looking for his first job. 
D)  Sarah Lopez,a public school teacher on vacation. 
E)  Amanda Pie,a full-time homemaker.

Question 13

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

Accepted Answer

A)  $0.50. 
B)  $1.50. 
C)  $2.00. 
D)  $4.00. 
E)  $7.00. 
A)  $0.50. 
B)  $1.50. 
C)  $2.00. 
D)  $4.00. 
E)  $7.00.

Question 14

Involuntary part-time workers are

Accepted Answer

A)  chronically unemployed. 
B)  considered out of the labour force. 
C)  short-term unemployed workers. 
D)  not counted as unemployed. 
E)  long-term unemployed workers. 
A)  chronically unemployed. 
B)  considered out of the labour force. 
C)  short-term unemployed workers. 
D)  not counted as unemployed. 
E)  long-term unemployed workers.

Question 15

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

Accepted Answer

A)  only to sell labour. 
B)  only to purchase goods and services from firms. 
C)  only to pay with net taxes for services from the government. 
D)  both to sell labour and to purchase goods and services from firms. 
E)  to sell labour,to purchase goods and services from firms,and to pay with net taxes for services from the government. 
A)  only to sell labour. 
B)  only to purchase goods and services from firms. 
C)  only to pay with net taxes for services from the government. 
D)  both to sell labour and to purchase goods and services from firms. 
E)  to sell labour,to purchase goods and services from firms,and to pay with net taxes for services from the government.

Question 16

If business inventories equal $20 billion at the beginning of the year but equal $30 billion at the end of the year,then GDP has

Accepted Answer

A)  decreased by $10 billion. 
B)  increased by $10 billion. 
C)  increased by $20 billion. 
D)  increased by $30 billion. 
E)  not changed. 
A)  decreased by $10 billion. 
B)  increased by $10 billion. 
C)  increased by $20 billion. 
D)  increased by $30 billion. 
E)  not changed.

Question 17

The largest component of GDP in terms of income is

Accepted Answer

A)  interest and miscellaneous investment income. 
B)  net farm and small business income. 
C)  corporate and like profits before taxes. 
D)  wages,salaries,and supplemental income. 
E)  net trade incomE. 
A)  interest and miscellaneous investment income. 
B)  net farm and small business income. 
C)  corporate and like profits before taxes. 
D)  wages,salaries,and supplemental income. 
E)  net trade incomE.

Question 18

When net investment is positive

Accepted Answer

A)  replacement investment exceeds gross investment. 
B)  the government is running a surplus. 
C)  exports exceed imports. 
D)  the capital stock grows from one year to the next. 
E)  consumption must exceed government purchases. 
A)  replacement investment exceeds gross investment. 
B)  the government is running a surplus. 
C)  exports exceed imports. 
D)  the capital stock grows from one year to the next. 
E)  consumption must exceed government purchases.

Question 19

Involuntary part-time workers are

Accepted Answer

A)  counted as employed. 
B)  counted as unemployed. 
C)  discouraged workers. 
D)  not counted as part of the labour force. 
E)  counted as short-term unemployed workers. 
A)  counted as employed. 
B)  counted as unemployed. 
C)  discouraged workers. 
D)  not counted as part of the labour force. 
E)  counted as short-term unemployed workers.

Question 20

Long-lived goods used for producing other goods and services are called

Accepted Answer

A)  consumption goods. 
B)  non-market goods. 
C)  value-added goods. 
D)  publicly provided goods. 
E)  capital goods. 
A)  consumption goods. 
B)  non-market goods. 
C)  value-added goods. 
D)  publicly provided goods. 
E)  capital goods.

Intermediate goods and services are production and counted in GDP.

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

The number of people unemployed divided by the labour force equals the

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

A fundamental difficulty with many proposals to increase GDP is that these proposals

Given the following data for an economy,compute the value of GDP.

The government purchases component of GDP includes

Consumption spending includes spending on

Which of the following would increase the net export component of Canada's GDP?

Factories and machines are examples of

Consumption expenditure is subdivided into four categories,including

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

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

Involuntary part-time workers are

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

If business inventories equal $20 billion at the beginning of the year but equal $30 billion at the end of the year,then GDP has

The largest component of GDP in terms of income is

When net investment is positive

Involuntary part-time workers are

Long-lived goods used for producing other goods and services are called

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

Intermediate goods and services are ________ production and ________ counted in GDP.

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

The number of people unemployed divided by the labour force equals the

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

A fundamental difficulty with many proposals to increase GDP is that these proposals

Given the following data for an economy,compute the value of GDP.

The government purchases component of GDP includes

Consumption spending includes spending on

Which of the following would increase the net export component of Canada's GDP?

Factories and machines are examples of

Consumption expenditure is subdivided into four categories,including

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

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

Involuntary part-time workers are

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

If business inventories equal $20 billion at the beginning of the year but equal $30 billion at the end of the year,then GDP has

The largest component of GDP in terms of income is

When net investment is positive

Involuntary part-time workers are

Long-lived goods used for producing other goods and services are called

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

Intermediate goods and services are production and counted in GDP.