Question 1

When a firm sells a product out of inventory,investment expenditures ______ and consumption expenditures ______.

Accepted Answer

A)  increase; decrease 
B)  decrease; increase 
C)  decrease; remain unchanged 
D)  remain unchanged; increase 
A)  increase; decrease 
B)  decrease; increase 
C)  decrease; remain unchanged 
D)  remain unchanged; increase

Question 2

If nominal GDP grew by 5 percent and real GDP grew by 3 percent,then the GDP deflator grew by approximately ______ percent.

Accepted Answer

A)  2 
B)  3 
C)  5 
D)  8 
A)  2 
B)  3 
C)  5 
D)  8

Question 3

An increase in the price of imported goods will show up in:

Accepted Answer

A)  the CPI but not in the GDP deflator. 
B)  the GDP deflator but not in the CPI. 
C)  both the CPI and the GDP deflator. 
D)  neither the CPI nor the GDP deflator. 
A)  the CPI but not in the GDP deflator. 
B)  the GDP deflator but not in the CPI. 
C)  both the CPI and the GDP deflator. 
D)  neither the CPI nor the GDP deflator.

Question 4

Net national product equals GDP:

Accepted Answer

A)  plus net investment. 
B)  minus net investment. 
C)  plus depreciation. 
D)  minus depreciation. 
A)  plus net investment. 
B)  minus net investment. 
C)  plus depreciation. 
D)  minus depreciation.

Question 5

Prices of items included in the CPI are:

Accepted Answer

A)  averaged with the price of every item weighted equally. 
B)  weighted according to amount of the item produced in GDP. 
C)  weighted according to quantity of the item purchased by the typical household. 
D)  chained to the base year by the year-to-year growth rate of the item. 
A)  averaged with the price of every item weighted equally. 
B)  weighted according to amount of the item produced in GDP. 
C)  weighted according to quantity of the item purchased by the typical household. 
D)  chained to the base year by the year-to-year growth rate of the item.

Question 6

In the national income accounts,goods bought for future use are classified as which type of expenditure?

Accepted Answer

A)  services 
B)  investment 
C)  government purchases 
D)  net exports 
A)  services 
B)  investment 
C)  government purchases 
D)  net exports

Question 7

GDP is the market value of all ______ goods and services produced within an economy in a given period.

Accepted Answer

A)  used 
B)  intermediate 
C)  consumer 
D)  final 
A)  used 
B)  intermediate 
C)  consumer 
D)  final

Question 8

Explain which expenditure category of GDP changes and the direction of the change that results for each of the following transactions:
a.A domestic business purchases a domestically produced computer to use in a business office.
b.A domestic business produces a computer that is sold to a foreign company.
c.The federal government purchases a domestically produced computer to use in a court house.
d.A domestic household purchases a domestically produced computer to use in a home.
e.A domestic household purchases a computer produced in a foreign country to use in a home.

Accepted Answer

a.Investment spending increases by the p

Question 9

The underground economy:

Accepted Answer

A)  is included in the latest GDP accounts. 
B)  includes only illegal activities. 
C)  includes domestic workers for whom employment insurance contributions are not collected. 
D)  excludes the illegal drug trade. 
A)  is included in the latest GDP accounts. 
B)  includes only illegal activities. 
C)  includes domestic workers for whom employment insurance contributions are not collected. 
D)  excludes the illegal drug trade.

Question 10

A farmer grows wheat and sells it to a miller for $1; the miller turns the wheat into flour and sells it to a baker for $3; the baker uses the flour to make bread and sells the bread for $6.The value added by the miller is:

Accepted Answer

A)  $1. 
B)  $2. 
C)  $3. 
D)  $6. 
A)  $1. 
B)  $2. 
C)  $3. 
D)  $6.

Question 11

In 2012,the nominal GDP of Canada totaled about:

Accepted Answer

A)  $16 billion. 
B)  $160 trillion. 
C)  $1,600 billion. 
D)  $150 trillion. 
A)  $16 billion. 
B)  $160 trillion. 
C)  $1,600 billion. 
D)  $150 trillion.

Question 12

Imputed values included in GDP are the:

Accepted Answer

A)  market prices of goods and services. 
B)  estimated value of goods and services that are not sold in the marketplace. 
C)  price of goods and services measured in constant prices. 
D)  price of goods and services measured in current prices. 
A)  market prices of goods and services. 
B)  estimated value of goods and services that are not sold in the marketplace. 
C)  price of goods and services measured in constant prices. 
D)  price of goods and services measured in current prices.

Question 13

In 2012,nominal GDP per person in Canada was approximately:

Accepted Answer

A)  $12,000. 
B)  $26,000. 
C)  $35,000. 
D)  $76,000. 
A)  $12,000. 
B)  $26,000. 
C)  $35,000. 
D)  $76,000.

Question 14

In computing GDP,

Accepted Answer

A)  expenditures on used goods are included. 
B)  production added to inventories is excluded. 
C)  the amount of production in the underground economy is imputed. 
D)  the value of intermediate goods is included in the market price of the final goods. 
A)  expenditures on used goods are included. 
B)  production added to inventories is excluded. 
C)  the amount of production in the underground economy is imputed. 
D)  the value of intermediate goods is included in the market price of the final goods.

Question 15

When prices of different goods are increasing by different amounts,the price index that will rise the fastest is:

Accepted Answer

A)  Fisher's ideal index. 
B)  the CPI. 
C)  the GDP deflator. 
D)  a Paasche index. 
A)  Fisher's ideal index. 
B)  the CPI. 
C)  the GDP deflator. 
D)  a Paasche index.

Question 16

According to the Labour Force Survey,the number of jobs in Canada shrank by 7000 during the month of February 2014,yet the unemployment rate remained constant at 7%.It is likely that the unemployment rate was unaffected because:

Accepted Answer

A)  the participation rate rose. 
B)  the participation rate fell. 
C)  older workers were retiring in fewer numbers since their retirement savings were hurt by the financial crisis a few years earlier. 
D)  increased numbers of younger workers were shifting from part-time to full-time employment. 
A)  the participation rate rose. 
B)  the participation rate fell. 
C)  older workers were retiring in fewer numbers since their retirement savings were hurt by the financial crisis a few years earlier. 
D)  increased numbers of younger workers were shifting from part-time to full-time employment.

Question 17

In the circular flow model,the flow of dollars from firms to households is paid _____ and the flow of dollars from households to firms is paid _____.

Accepted Answer

A)  as wages and profits; for goods and services 
B)  for value added; as imputed values 
C)  in current dollars; in constant dollars 
D)  as interest and dividends; for depreciation and taxes 
A)  as wages and profits; for goods and services 
B)  for value added; as imputed values 
C)  in current dollars; in constant dollars 
D)  as interest and dividends; for depreciation and taxes

Question 18

If total consumption (measured in billions of current dollars)equals $365.7,consumption of durable goods is $48,and consumption of nondurable goods is $119.4,then consumption of services is:

Accepted Answer

A)  $167.4. 
B)  $246.3. 
C)  $208.3. 
D)  $198.3. 
A)  $167.4. 
B)  $246.3. 
C)  $208.3. 
D)  $198.3.

Question 19

In a closed economy,the total income of everyone in the economy is exactly equal to the total:

Accepted Answer

A)  expenditure on the economy's output of goods and services. 
B)  consumption expenditures of everyone in the economy. 
C)  expenditures of all businesses in the economy. 
D)  government expenditures. 
A)  expenditure on the economy's output of goods and services. 
B)  consumption expenditures of everyone in the economy. 
C)  expenditures of all businesses in the economy. 
D)  government expenditures.

Question 20

According to the definition used by Statistics Canada,people are considered to be unemployed if they:

Accepted Answer

A)  are out of a job but not looking for work. 
B)  retired from the labour force. 
C)  have found a job but are waiting for it to start. 
D)  are in the military service. 
A)  are out of a job but not looking for work. 
B)  retired from the labour force. 
C)  have found a job but are waiting for it to start. 
D)  are in the military service.

When a firm sells a product out of inventory,investment expenditures and consumption expenditures .

If nominal GDP grew by 5 percent and real GDP grew by 3 percent,then the GDP deflator grew by approximately ______ percent.

An increase in the price of imported goods will show up in:

Net national product equals GDP:

Prices of items included in the CPI are:

In the national income accounts,goods bought for future use are classified as which type of expenditure?

GDP is the market value of all ______ goods and services produced within an economy in a given period.

The underground economy:

A farmer grows wheat and sells it to a miller for $1; the miller turns the wheat into flour and sells it to a baker for $3; the baker uses the flour to make bread and sells the bread for $6.The value added by the miller is:

In 2012,the nominal GDP of Canada totaled about:

Imputed values included in GDP are the:

In 2012,nominal GDP per person in Canada was approximately:

In computing GDP,

When prices of different goods are increasing by different amounts,the price index that will rise the fastest is:

According to the Labour Force Survey,the number of jobs in Canada shrank by 7000 during the month of February 2014,yet the unemployment rate remained constant at 7%.It is likely that the unemployment rate was unaffected because:

In the circular flow model,the flow of dollars from firms to households is paid _ and the flow of dollars from households to firms is paid _.

If total consumption (measured in billions of current dollars)equals $365.7,consumption of durable goods is $48,and consumption of nondurable goods is $119.4,then consumption of services is:

In a closed economy,the total income of everyone in the economy is exactly equal to the total:

According to the definition used by Statistics Canada,people are considered to be unemployed if they:

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

When a firm sells a product out of inventory,investment expenditures ______ and consumption expenditures ______.

If nominal GDP grew by 5 percent and real GDP grew by 3 percent,then the GDP deflator grew by approximately ______ percent.

An increase in the price of imported goods will show up in:

Net national product equals GDP:

Prices of items included in the CPI are:

In the national income accounts,goods bought for future use are classified as which type of expenditure?

GDP is the market value of all ______ goods and services produced within an economy in a given period.

The underground economy:

A farmer grows wheat and sells it to a miller for $1; the miller turns the wheat into flour and sells it to a baker for $3; the baker uses the flour to make bread and sells the bread for $6.The value added by the miller is:

In 2012,the nominal GDP of Canada totaled about:

Imputed values included in GDP are the:

In 2012,nominal GDP per person in Canada was approximately:

In computing GDP,

When prices of different goods are increasing by different amounts,the price index that will rise the fastest is:

According to the Labour Force Survey,the number of jobs in Canada shrank by 7000 during the month of February 2014,yet the unemployment rate remained constant at 7%.It is likely that the unemployment rate was unaffected because:

In the circular flow model,the flow of dollars from firms to households is paid _____ and the flow of dollars from households to firms is paid _____.

If total consumption (measured in billions of current dollars)equals $365.7,consumption of durable goods is $48,and consumption of nondurable goods is $119.4,then consumption of services is:

In a closed economy,the total income of everyone in the economy is exactly equal to the total:

According to the definition used by Statistics Canada,people are considered to be unemployed if they:

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

When a firm sells a product out of inventory,investment expenditures and consumption expenditures .

In the circular flow model,the flow of dollars from firms to households is paid _ and the flow of dollars from households to firms is paid _.