Question 1

If GDP (measured in billions of current dollars)is $1,600,consumption is $891,investment is $318,and net exports are $24,then government purchases are:

Accepted Answer

A)  $367. 
B)  $1,233. 
C)  $391. 
D)  $1,258. 
A)  $367. 
B)  $1,233. 
C)  $391. 
D)  $1,258.

Question 2

All of the following are measures of GDP except the total:

Accepted Answer

A)  expenditures of all businesses in the economy. 
B)  income from all production in the economy. 
C)  expenditures on all final goods produced. 
D)  value of all final production. 
A)  expenditures of all businesses in the economy. 
B)  income from all production in the economy. 
C)  expenditures on all final goods produced. 
D)  value of all final production.

Question 3

An example of an imputed value in the GDP is the:

Accepted Answer

A)  value-added of meals cooked at home. 
B)  housing services enjoyed by homeowners. 
C)  services of automobiles to their owners. 
D)  value of illegal drugs sold. 
A)  value-added of meals cooked at home. 
B)  housing services enjoyed by homeowners. 
C)  services of automobiles to their owners. 
D)  value of illegal drugs sold.

Question 4

A chain-weighted measure of real GDP is an improvement over traditional measures because the prices used to compute real GDP are:

Accepted Answer

A)  never very out of date. 
B)  always from the same base year. 
C)  imputed. 
D)  chained to the CPI. 
A)  never very out of date. 
B)  always from the same base year. 
C)  imputed. 
D)  chained to the CPI.

Question 5

Nominal GDP measures the value of goods and services in ______ prices,while real GDP measures the value of goods and services in ______ prices.

Accepted Answer

A)  foreign; domestic 
B)  domestic; foreign 
C)  current; constant 
D)  constant; current 
A)  foreign; domestic 
B)  domestic; foreign 
C)  current; constant 
D)  constant; current

Question 6

The national income accounts identity,for an open economy,is:

Accepted Answer

A)  Y = C + I + G - NX. 
B)  Y = C + I + G + NX. 
C)  Y = C + I + G. 
D)  Y = C + I - G. 
A)  Y = C + I + G - NX. 
B)  Y = C + I + G + NX. 
C)  Y = C + I + G. 
D)  Y = C + I - G.

Question 7

To compute the value of nominal GDP:

Accepted Answer

A)  goods and services are valued at market prices. 
B)  the sale of used goods is included. 
C)  production for inventory is not included. 
D)  goods and services are valued by weight. 
A)  goods and services are valued at market prices. 
B)  the sale of used goods is included. 
C)  production for inventory is not included. 
D)  goods and services are valued by weight.

Question 8

Assume that a tire company sells 4 tires to an automobile company for $400,another company sells a compact disc player for $500,and the automobile company puts all of these items in or on a car that it sells for $20,000.In this case,the amount from these transactions that should be counted in GDP is:

Accepted Answer

A)  $20,000. 
B)  $20,000 less the automobile company's profit on the car. 
C)  $20,900. 
D)  $20,900 less the profits of all three companies on the items that they sold. 
A)  $20,000. 
B)  $20,000 less the automobile company's profit on the car. 
C)  $20,900. 
D)  $20,900 less the profits of all three companies on the items that they sold.

Question 9

If real GDP grew by 6 percent and population grew by 2 percent,then real GDP per person grew by approximately ______ percent.

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  8 
A)  2 
B)  3 
C)  4 
D)  8

Question 10

It is a national income accounting rule that all expenditure on purchases of products is necessarily equal to:

Accepted Answer

A)  profits of firms. 
B)  wages of employees. 
C)  income of the producers of the products. 
D)  income of employees. 
A)  profits of firms. 
B)  wages of employees. 
C)  income of the producers of the products. 
D)  income of employees.

Question 11

The amount of capital in an economy is a(n)______ and the amount of investment is a(n)______.

Accepted Answer

A)  flow; stock 
B)  stock; flow 
C)  final good; intermediate good 
D)  intermediate good; final good 
A)  flow; stock 
B)  stock; flow 
C)  final good; intermediate good 
D)  intermediate good; final good

Question 12

In 2012 in Canada,total government purchases per person (in current dollars)amounted to approximately:

Accepted Answer

A)  $2,000. 
B)  $11,000. 
C)  $15,000. 
D)  $25,000. 
A)  $2,000. 
B)  $11,000. 
C)  $15,000. 
D)  $25,000.

Question 13

Assume that a firm buys all the parts that it puts into an automobile for $10,000,pays its workers $10,000 to fabricate the automobile,and sells the automobile for $22,000.In this case,the value added by the automobile company is:

Accepted Answer

A)  $10,000. 
B)  $12,000. 
C)  $20,000. 
D)  $22,000. 
A)  $10,000. 
B)  $12,000. 
C)  $20,000. 
D)  $22,000.

Question 14

Chain-weighted measures of real GDP make use of prices from:

Accepted Answer

A)  an unchanging base year. 
B)  a continuously changing base year. 
C)  a base year that is changed approximately every 5 years. 
D)  a base year that is changed approximately every 10 years. 
A)  an unchanging base year. 
B)  a continuously changing base year. 
C)  a base year that is changed approximately every 5 years. 
D)  a base year that is changed approximately every 10 years.

Question 15

Since GDP includes only the additions to income,not transfers of assets,______ are not included in the computation of GDP.

Accepted Answer

A)  final goods 
B)  used goods 
C)  consumption goods 
D)  goods produced for inventory 
A)  final goods 
B)  used goods 
C)  consumption goods 
D)  goods produced for inventory

Question 16

In 2012 in Canada,the percentage of GDP that was spent on consumption was approximately:

Accepted Answer

A)  56 percent. 
B)  50 percent. 
C)  33 percent. 
D)  16 percent. 
A)  56 percent. 
B)  50 percent. 
C)  33 percent. 
D)  16 percent.

Question 17

Explain why the value of GDP in 2014 would or would not change as a result of each of the following transactions:
a.In 2014,the Smith family purchases a new house that was built in 2014.b.In 2014,the Jones family purchases a house that was built in 2001.c.In 2014,a construction company purchases windows to put in the Smith family home that was built in 2014.d.In 2014,Mr.Jones paints all of the rooms of the Jones family house purchased in 2014.e.In 2014,Mr.Smith uses an online brokerage service to purchase shares of stock in a construction company.

Accepted Answer

a. GDP in 2014 increases by the purchase

Question 18

Assume that the adult population of Canada is 28 million,total employment is 17 million,and 1 million are unemployed.Then the unemployment rate,as normally computed,is approximately ______ percent.

Accepted Answer

A)  3.5 
B)  5.5 
C)  6.5 
D)  7.5 
A)  3.5 
B)  5.5 
C)  6.5 
D)  7.5

Question 19

Measuring the rate of inflation using a market basket that excludes food and energy prices is preferred by some analysts because this measure,called core inflation:

Accepted Answer

A)  provides a real,rather than a nominal,rate of inflation. 
B)  gives a better measure of ongoing,sustained price changes. 
C)  is more consistent with measures of inflation used in other countries. 
D)  fluctuates more than measures of inflation that include food and energy prices. 
A)  provides a real,rather than a nominal,rate of inflation. 
B)  gives a better measure of ongoing,sustained price changes. 
C)  is more consistent with measures of inflation used in other countries. 
D)  fluctuates more than measures of inflation that include food and energy prices.

Question 20

Assume that a rancher sells a McDonald's quarter-pound of meat for $1 and that McDonald's sells you a hamburger made from that meat for $2.In this case,the value included in GDP should be:

Accepted Answer

A)  $0.50. 
B)  $1. 
C)  $2. 
D)  $3. 
A)  $0.50. 
B)  $1. 
C)  $2. 
D)  $3.

If GDP (measured in billions of current dollars)is $1,600,consumption is $891,investment is $318,and net exports are $24,then government purchases are:

All of the following are measures of GDP except the total:

An example of an imputed value in the GDP is the:

A chain-weighted measure of real GDP is an improvement over traditional measures because the prices used to compute real GDP are:

Nominal GDP measures the value of goods and services in prices,while real GDP measures the value of goods and services in prices.

The national income accounts identity,for an open economy,is:

To compute the value of nominal GDP:

If real GDP grew by 6 percent and population grew by 2 percent,then real GDP per person grew by approximately ______ percent.

It is a national income accounting rule that all expenditure on purchases of products is necessarily equal to:

The amount of capital in an economy is a(n) and the amount of investment is a(n).

In 2012 in Canada,total government purchases per person (in current dollars)amounted to approximately:

Assume that a firm buys all the parts that it puts into an automobile for $10,000,pays its workers $10,000 to fabricate the automobile,and sells the automobile for $22,000.In this case,the value added by the automobile company is:

Chain-weighted measures of real GDP make use of prices from:

Since GDP includes only the additions to income,not transfers of assets,______ are not included in the computation of GDP.

In 2012 in Canada,the percentage of GDP that was spent on consumption was approximately:

Assume that the adult population of Canada is 28 million,total employment is 17 million,and 1 million are unemployed.Then the unemployment rate,as normally computed,is approximately ______ percent.

Measuring the rate of inflation using a market basket that excludes food and energy prices is preferred by some analysts because this measure,called core inflation:

Assume that a rancher sells a McDonald's quarter-pound of meat for $1 and that McDonald's sells you a hamburger made from that meat for $2.In this case,the value included in GDP should be:

The Science of Macroeconomics

The Open Economy

Unemployment

Economic Growth I

Economic Growth II

Introduction to Economic Fluctuations

Aggregate Demand I

Aggregate Supply and the Short-Run

Stabilization Policy

Government Debt and Budget Deficits

Investment

Money Supply and Money Demand

The Financial System

Filters

Exam 2: The Data of Macroeconomics

If GDP (measured in billions of current dollars)is $1,600,consumption is $891,investment is $318,and net exports are $24,then government purchases are:

All of the following are measures of GDP except the total:

An example of an imputed value in the GDP is the:

A chain-weighted measure of real GDP is an improvement over traditional measures because the prices used to compute real GDP are:

Nominal GDP measures the value of goods and services in ______ prices,while real GDP measures the value of goods and services in ______ prices.

The national income accounts identity,for an open economy,is:

To compute the value of nominal GDP:

If real GDP grew by 6 percent and population grew by 2 percent,then real GDP per person grew by approximately ______ percent.

It is a national income accounting rule that all expenditure on purchases of products is necessarily equal to:

The amount of capital in an economy is a(n)______ and the amount of investment is a(n)______.

In 2012 in Canada,total government purchases per person (in current dollars)amounted to approximately:

Assume that a firm buys all the parts that it puts into an automobile for $10,000,pays its workers $10,000 to fabricate the automobile,and sells the automobile for $22,000.In this case,the value added by the automobile company is:

Chain-weighted measures of real GDP make use of prices from:

Since GDP includes only the additions to income,not transfers of assets,______ are not included in the computation of GDP.

In 2012 in Canada,the percentage of GDP that was spent on consumption was approximately:

Assume that the adult population of Canada is 28 million,total employment is 17 million,and 1 million are unemployed.Then the unemployment rate,as normally computed,is approximately ______ percent.

Measuring the rate of inflation using a market basket that excludes food and energy prices is preferred by some analysts because this measure,called core inflation:

Assume that a rancher sells a McDonald's quarter-pound of meat for $1 and that McDonald's sells you a hamburger made from that meat for $2.In this case,the value included in GDP should be:

The Science of Macroeconomics

The Open Economy

Unemployment

Economic Growth I

Economic Growth II

Introduction to Economic Fluctuations

Aggregate Demand I

Aggregate Supply and the Short-Run

Stabilization Policy

Government Debt and Budget Deficits

Investment

Money Supply and Money Demand

The Financial System

Filters

Nominal GDP measures the value of goods and services in prices,while real GDP measures the value of goods and services in prices.

The amount of capital in an economy is a(n) and the amount of investment is a(n).