Question 1

Real GDP is:

Accepted Answer

A)  the value of the production of all final goods and services measured in current prices. 
B)  the value of the production of all final goods and services adjusted for price changes. 
C)  the projected future value of GDP. 
D)  calculated by adding up only the real number of all items sold in Canada,regardless of their prices. 
A)  the value of the production of all final goods and services measured in current prices. 
B)  the value of the production of all final goods and services adjusted for price changes. 
C)  the projected future value of GDP. 
D)  calculated by adding up only the real number of all items sold in Canada,regardless of their prices.

Question 2

Use the following to answer questions:  
-Consider an economy that produces only DVDs and DVD players.If 10 DVDs are sold at $20 each and 5 DVD players are sold at $100 each,then nominal GDP is:

Accepted Answer

A)  $100. 
B)  $700. 
C)  $1 100. 
D)  $900. 
A)  $100. 
B)  $700. 
C)  $1 100. 
D)  $900.

Question 3

The price index in a given year is the cost of the market basket in that year _____ the cost of the market basket in the base year times 100.

Accepted Answer

A)  divided by 
B)  times 
C)  minus 
D)  plus 
A)  divided by 
B)  times 
C)  minus 
D)  plus

Question 4

Included in GDP is the dollar value of:

Accepted Answer

A)  a used car sold during the period. 
B)  a new car imported during the period. 
C)  a new car exported during the period. 
D)  100 shares of General Motors stock bought by a retiree. 
A)  a used car sold during the period. 
B)  a new car imported during the period. 
C)  a new car exported during the period. 
D)  100 shares of General Motors stock bought by a retiree.

Question 5

Which factor causes an outflow of funds from a domestic economy?

Accepted Answer

A)  household savings 
B)  government tax collections 
C)  government transfer payments 
D)  imports 
A)  household savings 
B)  government tax collections 
C)  government transfer payments 
D)  imports

Question 6

The industrial producer price index measures changes in the cost of a market basket of raw commodities,such as steel,electricity,and coal.

Accepted Answer

A) True 
 B)False

Question 7

Suppose that Mr.Green Jeans sells $5 000 of wheat to Big Ben Bakery.Big Ben uses the wheat to make flour and then hamburger buns,which it sells to Hamburger Heaven for $11 000.Hamburger Heaven also buys $20 000 of beef from a rancher.Hamburger Heaven uses the beef and buns to make 10 000 hamburgers,which are sold for $5 each.How much do these transactions add to GDP?

Accepted Answer

A)  $86 000 
B)  $36 000 
C)  $31 000 
D)  $50 000 
A)  $86 000 
B)  $36 000 
C)  $31 000 
D)  $50 000

Question 8

Gross domestic product is defined as:

Accepted Answer

A)  consumer spending + government purchases of goods and services + financial spending + exports - imports. 
B)  consumer spending + government transfers + investment spending + exports - imports. 
C)  disposable income + taxes + investment spending + exports + imports. 
D)  consumer spending + government purchases of goods and services + investment spending + exports - imports. 
A)  consumer spending + government purchases of goods and services + financial spending + exports - imports. 
B)  consumer spending + government transfers + investment spending + exports - imports. 
C)  disposable income + taxes + investment spending + exports + imports. 
D)  consumer spending + government purchases of goods and services + investment spending + exports - imports.

Question 9

In Canada,consumer spending accounts for approximately _____% of GDP.

Accepted Answer

A)  50 
B)  60 
C)  70 
D)  80 
A)  50 
B)  60 
C)  70 
D)  80

Question 10

Investment spending is spending on:

Accepted Answer

A)  productive physical capital. 
B)  stocks. 
C)  mutual funds. 
D)  corporate bonds. 
A)  productive physical capital. 
B)  stocks. 
C)  mutual funds. 
D)  corporate bonds.

Question 11

Use the following to answer question 246:  
-(Table: CPI II)Use Table: CPI II.Prices _____ between 2010 and 2011.

Accepted Answer

A)  fell by 5% 
B)  fell by 4% 
C)  increased by 4% 
D)  increased by 5% 
A)  fell by 5% 
B)  fell by 4% 
C)  increased by 4% 
D)  increased by 5%

Question 12

If,during 2011,the Republic of Sildavia recorded a value added of $78 billion,wages of $40 billion,profits of $8 billion,and total sales of all goods and services of $90 billion,the value of intermediate goods purchased during 2011 in Sildavia was:

Accepted Answer

A)  $42 billion. 
B)  $30 billion. 
C)  $12 billion. 
D)  $4 billion. 
A)  $42 billion. 
B)  $30 billion. 
C)  $12 billion. 
D)  $4 billion.

Question 13

Use the following to answer questions:  
-(Table: Pizza Economy III)Use Table: Pizza Economy III.Using 2010 as the base year,real GDP in 2010 was:

Accepted Answer

A)  $47 000. 
B)  $69 000. 
C)  $72 000. 
D)  $114 000. 
A)  $47 000. 
B)  $69 000. 
C)  $72 000. 
D)  $114 000.

Question 14

Consider an economy that produces only DVDs and DVD players.Last year,10 DVDs were sold at $20 each and 5 DVD players were sold at $100 each,whereas this year 15 DVDs were sold at $10 each and 10 DVD players were sold at $50 each.Real GDP this year using last year as the base year is:

Accepted Answer

A)  $100. 
B)  $700. 
C)  $1 300. 
D)  $300 
A)  $100. 
B)  $700. 
C)  $1 300. 
D)  $300

Question 15

If both aggregate output and the aggregate price level increase:

Accepted Answer

A)  real GDP will increase faster than nominal GDP will. 
B)  nominal GDP will increase faster than real GDP will. 
C)  it makes no difference to real or nominal GDP. 
D)  real GDP and nominal GDP will increase faster than the price level will. 
A)  real GDP will increase faster than nominal GDP will. 
B)  nominal GDP will increase faster than real GDP will. 
C)  it makes no difference to real or nominal GDP. 
D)  real GDP and nominal GDP will increase faster than the price level will.

Question 16

The MOST important use of GDP is as a measure of:

Accepted Answer

A)  the size of the economy. 
B)  the level of unemployment. 
C)  changes in the price level. 
D)  rates of return in financial markets. 
A)  the size of the economy. 
B)  the level of unemployment. 
C)  changes in the price level. 
D)  rates of return in financial markets.

Question 17

An example of an intermediate good is:

Accepted Answer

A)  wages paid to an employee. 
B)  steel purchased by aircraft manufacturers. 
C)  vegetables purchased for your dinner. 
D)  electric bills for your house. 
A)  wages paid to an employee. 
B)  steel purchased by aircraft manufacturers. 
C)  vegetables purchased for your dinner. 
D)  electric bills for your house.

Question 18

In the product markets:

Accepted Answer

A)  households supply goods and services. 
B)  households demand goods and services. 
C)  firms demand resources. 
D)  firms supply resources. 
A)  households supply goods and services. 
B)  households demand goods and services. 
C)  firms demand resources. 
D)  firms supply resources.

Question 19

If the cost of the market basket in the base year is $5 000 and the cost of the market basket in the current year is $5 100,the price index for the current year is 102.

Accepted Answer

A) True 
 B)False

Question 20

Disposable income in a particular period is:

Accepted Answer

A)  total earned income. 
B)  earned income plus government transfer payments. 
C)  earned income plus government transfer payments less taxes. 
D)  earned income plus government transfer payments less taxes and savings. 
A)  total earned income. 
B)  earned income plus government transfer payments. 
C)  earned income plus government transfer payments less taxes. 
D)  earned income plus government transfer payments less taxes and savings.

Real GDP is:

Use the following to answer questions: -Consider an economy that produces only DVDs and DVD players.If 10 DVDs are sold at $20 each and 5 DVD players are sold at $100 each,then nominal GDP is:

The price index in a given year is the cost of the market basket in that year _____ the cost of the market basket in the base year times 100.

Included in GDP is the dollar value of:

Which factor causes an outflow of funds from a domestic economy?

The industrial producer price index measures changes in the cost of a market basket of raw commodities,such as steel,electricity,and coal.

Gross domestic product is defined as:

In Canada,consumer spending accounts for approximately _____% of GDP.

Investment spending is spending on:

Use the following to answer question 246: -(Table: CPI II)Use Table: CPI II.Prices _____ between 2010 and 2011.

If,during 2011,the Republic of Sildavia recorded a value added of $78 billion,wages of $40 billion,profits of $8 billion,and total sales of all goods and services of $90 billion,the value of intermediate goods purchased during 2011 in Sildavia was:

Use the following to answer questions: -(Table: Pizza Economy III)Use Table: Pizza Economy III.Using 2010 as the base year,real GDP in 2010 was:

Consider an economy that produces only DVDs and DVD players.Last year,10 DVDs were sold at $20 each and 5 DVD players were sold at $100 each,whereas this year 15 DVDs were sold at $10 each and 10 DVD players were sold at $50 each.Real GDP this year using last year as the base year is:

If both aggregate output and the aggregate price level increase:

The MOST important use of GDP is as a measure of:

An example of an intermediate good is:

In the product markets:

If the cost of the market basket in the base year is $5 000 and the cost of the market basket in the current year is $5 100,the price index for the current year is 102.

Disposable income in a particular period is:

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

Real GDP is:

Use the following to answer questions: -Consider an economy that produces only DVDs and DVD players.If 10 DVDs are sold at $20 each and 5 DVD players are sold at $100 each,then nominal GDP is:

The price index in a given year is the cost of the market basket in that year _____ the cost of the market basket in the base year times 100.

Included in GDP is the dollar value of:

Which factor causes an outflow of funds from a domestic economy?

The industrial producer price index measures changes in the cost of a market basket of raw commodities,such as steel,electricity,and coal.

Gross domestic product is defined as:

In Canada,consumer spending accounts for approximately _____% of GDP.

Investment spending is spending on:

Use the following to answer question 246: -(Table: CPI II)Use Table: CPI II.Prices _____ between 2010 and 2011.

If,during 2011,the Republic of Sildavia recorded a value added of $78 billion,wages of $40 billion,profits of $8 billion,and total sales of all goods and services of $90 billion,the value of intermediate goods purchased during 2011 in Sildavia was:

Use the following to answer questions: -(Table: Pizza Economy III)Use Table: Pizza Economy III.Using 2010 as the base year,real GDP in 2010 was:

Consider an economy that produces only DVDs and DVD players.Last year,10 DVDs were sold at $20 each and 5 DVD players were sold at $100 each,whereas this year 15 DVDs were sold at $10 each and 10 DVD players were sold at $50 each.Real GDP this year using last year as the base year is:

If both aggregate output and the aggregate price level increase:

The MOST important use of GDP is as a measure of:

An example of an intermediate good is:

In the product markets:

If the cost of the market basket in the base year is $5 000 and the cost of the market basket in the current year is $5 100,the price index for the current year is 102.

Disposable income in a particular period is:

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