Exam 5: Measuring a Nations Income

Suppose an economy produces only wheat and rice.Last year,20 bushels of wheat are sold at $4 per bushel,and 10 bushels of rice are sold at $2 per bushel.If the price of wheat was $2 per bushel and the price of rice was $1 per bushel in the base year,what can we conclude?

Table 5-1 -Refer to the Table 5-1.What is the NNP for this economy?

A Canadian tourist buys a $200 leather jacket in Italy.What happens to Canadian imports / exports and GDP?

How are grapes treated in GDP terms?

Which topics are studied in macroeconomics?

In a simple circular-flow diagram,why is total income equal to total expenditure?

What is the relationship between income and expenditure for an economy?

Which of the following defines recessions?

What do international GDP and socioeconomic data show?

If a province made an illegal activity such as gambling or prostitution legal,then,other things the same,what would happen to GDP?

Table 5-6 -Refer to Table 5-6.On the basis of the information in the table,which list below contains the correct ordering of GDP per person (from highest to lowest)?

Table 5-2 -Refer to the Table 5-2.What is the personal income for this economy?

Over the past few decades,Canadians have chosen to cook less at home and eat more at restaurants.How has this practice affected GDP?

What is the goal of macroeconomics?

A farmer produces the same output in 2015 as in 2014.His input prices increase by 3 percent and so does his product price.Which inflation rate makes the farmer as well off in 2015 as in 2014?

Suppose that over the past 25 years a country's nominal GDP grew to three times its former size.In the meantime,population grew 50 percent and prices rose 100 percent.What happened to real GDP per person?

Which question is more likely to be studied by a macroeconomist than a microeconomist?

With respect to GDP,how is unemployment compensation treated?

Margret reports the following income for the last year: $80,000 from employment,$2000 interest from bank accounts,and $25,000 profits and dividends.Of this income,she has spent $50,000 on food and other consumption goods,$20,000 on vacations abroad,saved $10,000 in her retirement account,spent $20,000 on purchasing extra shares and $10,000 on new computers for her business. ​ a)What was the increase in GDP generated by Margret's activity? b)What are her certain contributions to consumption,investment,and net exports? c)What is the value of production that was newly created by Margret's productive activity?

A German citizen buys an automobile produced in Canada by a Japanese company.What happens as a result?