Question 1

Use the following to answer questions:  
-(Table: Per Capita GDP)Use Table: Per Capita GDP.Per capita real GDP in 2014 was:

Accepted Answer

A)  $600. 
B)  $800. 
C)  $300. 
D)  $400. 
A)  $600. 
B)  $800. 
C)  $300. 
D)  $400.

Question 2

The price index in the current year is the cost of the market basket in the current year divided by the cost of the market basket in the base year.

Accepted Answer

A) True 
 B)False

Question 3

Use the following to answer questions:  
-(Table: Per Capita GDP)Per capita nominal GDP in 2011 was:

Accepted Answer

A)  $600. 
B)  $400. 
C)  $300. 
D)  $30. 
A)  $600. 
B)  $400. 
C)  $300. 
D)  $30.

Question 4

Use the following to answer questions:  
-(Figure 7-2: Expanded Circular-Flow Model)Use Figure 7-2: Expanded Circular-Flow Model.The flow of funds into and out of financial markets is:

Accepted Answer

A)  $70. 
B)  $110. 
C)  $170. 
D)  $300. 
A)  $70. 
B)  $110. 
C)  $170. 
D)  $300.

Question 5

In Canada,government spending accounts for approximately_____% of GDP.

Accepted Answer

A)  5 
B)  10 
C)  20 
D)  30 
A)  5 
B)  10 
C)  20 
D)  30

Question 6

Suppose that,in year 1,an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each.The next year,the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each.Using year 1 as the base year,real GDP in year 2 is:

Accepted Answer

A)  $900. 
B)  $970. 
C)  $1 000. 
D)  $1 077.50. 
A)  $900. 
B)  $970. 
C)  $1 000. 
D)  $1 077.50.

Question 7

Flows of money,goods and services,and factors of production through the economy are all shown in the circular-flow diagram.

Accepted Answer

A) True 
 B)False

Question 8

Assume that,in the base year (2011),a country's nominal GDP is $10 000 billion.The country has had 5% inflation each year since 2006.Real GDP of 2011 is equal to:

Accepted Answer

A)  $10 500 billion. 
B)  $11 025 billion. 
C)  $10 000 billion. 
D)  $9 500 billion. 
A)  $10 500 billion. 
B)  $11 025 billion. 
C)  $10 000 billion. 
D)  $9 500 billion.

Question 9

Households supply goods and services in the product markets.

Accepted Answer

A) True 
 B)False

Question 10

GDP is the total dollar value of all:

Accepted Answer

A)  intermediate goods and services produced in the economy in a given period. 
B)  wages paid to producing workers in a given period. 
C)  final goods and services produced in the economy in a given period. 
D)  government production in a given period. 
A)  intermediate goods and services produced in the economy in a given period. 
B)  wages paid to producing workers in a given period. 
C)  final goods and services produced in the economy in a given period. 
D)  government production in a given period.

Question 11

The industrial producer price index is also known as the manufacturing price index.

Accepted Answer

A) True 
 B)False

Question 12

The consumer price index is intended to show how the cost of all purchases by a typical urban family has changed over time.

Accepted Answer

A) True 
 B)False

Question 13

The price index in the base year is normalized so that it equals 100 in the base year.

Accepted Answer

A) True 
 B)False

Question 14

If the consumer price index changes from 120 to 125 between December 2009 and December 2010,the:

Accepted Answer

A)  inflation rate for 2010 is 4.2%. 
B)  inflation rate for 2010 is 5%. 
C)  deflation rate for 2010 is 5%. 
D)  deflation rate for 2010 is 4.2%. 
A)  inflation rate for 2010 is 4.2%. 
B)  inflation rate for 2010 is 5%. 
C)  deflation rate for 2010 is 5%. 
D)  deflation rate for 2010 is 4.2%.

Question 15

Steel manufactured to make a car is not counted in aggregate output,but the car that results is counted.

Accepted Answer

A) True 
 B)False

Question 16

An example of investment spending is the:

Accepted Answer

A)  amount of funds raised by the government in the financial markets. 
B)  purchase of government bonds by a private household. 
C)  purchase of a freezer by an ice-cream parlor. 
D)  purchase of stock shares by a mutual fund. 
A)  amount of funds raised by the government in the financial markets. 
B)  purchase of government bonds by a private household. 
C)  purchase of a freezer by an ice-cream parlor. 
D)  purchase of stock shares by a mutual fund.

Question 17

The national accounts do NOT keep track of:

Accepted Answer

A)  the spending of consumers and the government. 
B)  the sales of producers. 
C)  business investment. 
D)  exchange rates. 
A)  the spending of consumers and the government. 
B)  the sales of producers. 
C)  business investment. 
D)  exchange rates.

Question 18

Use the following to answer questions:  
-(Table: Pizza Economy III)Use Table: Pizza Economy III.Considering 2010 as the base year,given that total population was 1 140 in 2010 and 1 380 in 2011,real GDP per capita between 2010 and 2011 grew at a rate of _____%.

Accepted Answer

A)  -50 
B)  -25 
C)  50 
D)  75 
A)  -50 
B)  -25 
C)  50 
D)  75

Question 19

Nominal GDP was $5 803 billion in 1994 and $11 734 billion in 2008,we can conclude that aggregate output roughly doubled over the 14-year period.

Accepted Answer

A) True 
 B)False

Question 20

Use the following to answer questions:  
-(Figure 7-2: Expanded Circular-Flow Model)Use Figure 7-2: Expanded Circular-Flow Model.How much is total government spending?

Accepted Answer

A)  $20 
B)  $220 
C)  $370 
D)  $200 
A)  $20 
B)  $220 
C)  $370 
D)  $200

Use the following to answer questions: -(Table: Per Capita GDP)Use Table: Per Capita GDP.Per capita real GDP in 2014 was:

The price index in the current year is the cost of the market basket in the current year divided by the cost of the market basket in the base year.

Use the following to answer questions: -(Table: Per Capita GDP)Per capita nominal GDP in 2011 was:

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model)Use Figure 7-2: Expanded Circular-Flow Model.The flow of funds into and out of financial markets is:

In Canada,government spending accounts for approximately_____% of GDP.

Suppose that,in year 1,an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each.The next year,the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each.Using year 1 as the base year,real GDP in year 2 is:

Flows of money,goods and services,and factors of production through the economy are all shown in the circular-flow diagram.

Assume that,in the base year (2011),a country's nominal GDP is $10 000 billion.The country has had 5% inflation each year since 2006.Real GDP of 2011 is equal to:

Households supply goods and services in the product markets.

GDP is the total dollar value of all:

The industrial producer price index is also known as the manufacturing price index.

The consumer price index is intended to show how the cost of all purchases by a typical urban family has changed over time.

The price index in the base year is normalized so that it equals 100 in the base year.

If the consumer price index changes from 120 to 125 between December 2009 and December 2010,the:

Steel manufactured to make a car is not counted in aggregate output,but the car that results is counted.

An example of investment spending is the:

The national accounts do NOT keep track of:

Use the following to answer questions: -(Table: Pizza Economy III)Use Table: Pizza Economy III.Considering 2010 as the base year,given that total population was 1 140 in 2010 and 1 380 in 2011,real GDP per capita between 2010 and 2011 grew at a rate of _____%.

Nominal GDP was $5 803 billion in 1994 and $11 734 billion in 2008,we can conclude that aggregate output roughly doubled over the 14-year period.

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model)Use Figure 7-2: Expanded Circular-Flow Model.How much is total government spending?

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Graphs in Economics

Filters

Exam 7: Gdp and the Cpi: Tracking the Macroeconomy

Use the following to answer questions: -(Table: Per Capita GDP)Use Table: Per Capita GDP.Per capita real GDP in 2014 was:

The price index in the current year is the cost of the market basket in the current year divided by the cost of the market basket in the base year.

Use the following to answer questions: -(Table: Per Capita GDP)Per capita nominal GDP in 2011 was:

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model)Use Figure 7-2: Expanded Circular-Flow Model.The flow of funds into and out of financial markets is:

In Canada,government spending accounts for approximately_____% of GDP.

Suppose that,in year 1,an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each.The next year,the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each.Using year 1 as the base year,real GDP in year 2 is:

Flows of money,goods and services,and factors of production through the economy are all shown in the circular-flow diagram.

Assume that,in the base year (2011),a country's nominal GDP is $10 000 billion.The country has had 5% inflation each year since 2006.Real GDP of 2011 is equal to:

Households supply goods and services in the product markets.

GDP is the total dollar value of all:

The industrial producer price index is also known as the manufacturing price index.

The consumer price index is intended to show how the cost of all purchases by a typical urban family has changed over time.

The price index in the base year is normalized so that it equals 100 in the base year.

If the consumer price index changes from 120 to 125 between December 2009 and December 2010,the:

Steel manufactured to make a car is not counted in aggregate output,but the car that results is counted.

An example of investment spending is the:

The national accounts do NOT keep track of:

Use the following to answer questions: -(Table: Pizza Economy III)Use Table: Pizza Economy III.Considering 2010 as the base year,given that total population was 1 140 in 2010 and 1 380 in 2011,real GDP per capita between 2010 and 2011 grew at a rate of _____%.

Nominal GDP was $5 803 billion in 1994 and $11 734 billion in 2008,we can conclude that aggregate output roughly doubled over the 14-year period.

Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model)Use Figure 7-2: Expanded Circular-Flow Model.How much is total government spending?

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Graphs in Economics

Filters