Question 1

Use the following to answer questions:  
-Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.Exports are:

Accepted Answer

A)  -$5 billion. 
B)  zero. 
C)  $5 billion. 
D)  $10 billion. 
A)  -$5 billion. 
B)  zero. 
C)  $5 billion. 
D)  $10 billion.

Question 2

Use the following to answer questions:  
-If real GDP rises while nominal GDP falls,then prices on average have:

Accepted Answer

A)  risen. 
B)  fallen. 
C)  stayed the same. 
D)  decreased and then been offset by an equal increase. 
A)  risen. 
B)  fallen. 
C)  stayed the same. 
D)  decreased and then been offset by an equal increase.

Question 3

An example of a non-factor payment would be

Accepted Answer

A)  income taxes. 
B)  net indirect taxes. 
C)  labour income. 
D)  production of goods sold overseas. 
A)  income taxes. 
B)  net indirect taxes. 
C)  labour income. 
D)  production of goods sold overseas.

Question 4

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

Accepted Answer

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

Question 5

GDP counts the dollar value of only final goods and services because:

Accepted Answer

A)  we can measure only the value of final goods and services,not the value of inputs. 
B)  if we counted the value of all goods,we would count inputs,such as the value of steel in a new automobile,more than once. 
C)  intermediate goods reduce GDP. 
D)  only final goods and services matter for the economy. 
A)  we can measure only the value of final goods and services,not the value of inputs. 
B)  if we counted the value of all goods,we would count inputs,such as the value of steel in a new automobile,more than once. 
C)  intermediate goods reduce GDP. 
D)  only final goods and services matter for the economy.

Question 6

Suppose a consumer buys a Perfect Pizza frozen cheese pizza at the grocery store for $10.Perfect Pizza purchased the dough and tomato sauce from a food-processing company for $2 and bought the cheese for $1.It sold the pizza to the store for $5.How much has GDP increased?

Accepted Answer

A)  $2 
B)  $5 
C)  $10 
D)  $18 
A)  $2 
B)  $5 
C)  $10 
D)  $18

Question 7

In the Canadian economy,the circular-flow diagram does NOT illustrate:

Accepted Answer

A)  growing income inequality. 
B)  flows of money. 
C)  flows of goods and services. 
D)  the purchase and sale of factors of production. 
A)  growing income inequality. 
B)  flows of money. 
C)  flows of goods and services. 
D)  the purchase and sale of factors of production.

Question 8

The value of _____ is counted in GDP.

Accepted Answer

A)  glass for windshields purchased by a car manufacturer 
B)  a new car sold by a dealer 
C)  a used car sold by a dealer 
D)  a share of stock in a car manufacturer 
A)  glass for windshields purchased by a car manufacturer 
B)  a new car sold by a dealer 
C)  a used car sold by a dealer 
D)  a share of stock in a car manufacturer

Question 9

The consumer price index is calculated by the Department of Finance.

Accepted Answer

A) True 
 B)False

Question 10

Assume that the real GDP of Macronesia is approximately $12 trillion and the population of Macronesia is approximately 300 million.What is per capita real GDP?

Accepted Answer

A)  $4 000 
B)  $36 000 
C)  $40 000 
D)  Real per capita GDP can't be determined without more information. 
A)  $4 000 
B)  $36 000 
C)  $40 000 
D)  Real per capita GDP can't be determined without more information.

Question 11

The calculation of GDP does NOT include the value of:

Accepted Answer

A)  Firestone tires sold at your local garage. 
B)  Bridgestone tires purchased by Ford Motor Co. 
C)  Goodyear tires purchased by Canadian Security Intelligence Service (CSIS). 
D)  Michelin tires purchased by Canadian car collectors. 
A)  Firestone tires sold at your local garage. 
B)  Bridgestone tires purchased by Ford Motor Co. 
C)  Goodyear tires purchased by Canadian Security Intelligence Service (CSIS). 
D)  Michelin tires purchased by Canadian car collectors.

Question 12

If the consumer price index increases from 125 to 130 in 1 year,the rate of inflation is 5%.

Accepted Answer

A) True 
 B)False

Question 13

The money spent on domestically produced final goods and services is:

Accepted Answer

A)  equal to GDP. 
B)  equal to exports minus imports. 
C)  subtracted in the circular-flow model. 
D)  equal to GDP,equal to exports minus imports,and subtracted in the circular-flow model. 
A)  equal to GDP. 
B)  equal to exports minus imports. 
C)  subtracted in the circular-flow model. 
D)  equal to GDP,equal to exports minus imports,and subtracted in the circular-flow model.

Question 14

A household is a person or group of people who buy resources and produce goods and services.

Accepted Answer

A) True 
 B)False

Question 15

Investment spending is spending on:

Accepted Answer

A)  productive physical capital. 
B)  bonds. 
C)  shares of stock. 
D)  productive physical capital,bonds,and shares of stock. 
A)  productive physical capital. 
B)  bonds. 
C)  shares of stock. 
D)  productive physical capital,bonds,and shares of stock.

Question 16

GDP per capita measures the value of all intermediate goods and services produced in the economy.

Accepted Answer

A) True 
 B)False

Question 17

If,during 2011,the Republic of Sildavia recorded a GDP of $65 billion,interest payments of $15 billion,imports of $13 billion,profits of $7 billion,exports of $15 billion,and rent of $7 billion,wages during 2011 in Sildavia were:

Accepted Answer

A)  $36 billion. 
B)  $38 billion. 
C)  $51 billion. 
D)  $64 billion. 
A)  $36 billion. 
B)  $38 billion. 
C)  $51 billion. 
D)  $64 billion.

Question 18

Use the following to answer questions:  
-(Table: Lemonade and Cookies)Use Table: Lemonade and Cookies.Assume that an economy produces only lemonade and cookies.Assuming 2013 was the base year,the growth rate of real GDP from 2013 to 2014 was _____%.

Accepted Answer

A)  5 
B)  10 
C)  11.25 
D)  20 
A)  5 
B)  10 
C)  11.25 
D)  20

Question 19

Which item would NOT be a part of GDP?

Accepted Answer

A)  used car sales 
B)  new residential construction 
C)  a new truck purchased by a building contractor 
D)  cable TV service purchased for a home 
A)  used car sales 
B)  new residential construction 
C)  a new truck purchased by a building contractor 
D)  cable TV service purchased for a home

Question 20

GDP is the sum of:

Accepted Answer

A)  personal consumption,investment,government purchases of goods and services,exports,and imports. 
B)  personal consumption,investment,government purchases of goods and services,and net exports. 
C)  personal consumption,investment,government purchases of goods and services,and net imports. 
D)  value added,net imports,and government purchases of goods and services. 
A)  personal consumption,investment,government purchases of goods and services,exports,and imports. 
B)  personal consumption,investment,government purchases of goods and services,and net exports. 
C)  personal consumption,investment,government purchases of goods and services,and net imports. 
D)  value added,net imports,and government purchases of goods and services.

Use the following to answer questions: -Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.Exports are:

Use the following to answer questions: -If real GDP rises while nominal GDP falls,then prices on average have:

An example of a non-factor payment would be

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

GDP counts the dollar value of only final goods and services because:

Suppose a consumer buys a Perfect Pizza frozen cheese pizza at the grocery store for $10.Perfect Pizza purchased the dough and tomato sauce from a food-processing company for $2 and bought the cheese for $1.It sold the pizza to the store for $5.How much has GDP increased?

In the Canadian economy,the circular-flow diagram does NOT illustrate:

The value of _____ is counted in GDP.

The consumer price index is calculated by the Department of Finance.

Assume that the real GDP of Macronesia is approximately $12 trillion and the population of Macronesia is approximately 300 million.What is per capita real GDP?

The calculation of GDP does NOT include the value of:

If the consumer price index increases from 125 to 130 in 1 year,the rate of inflation is 5%.

The money spent on domestically produced final goods and services is:

A household is a person or group of people who buy resources and produce goods and services.

Investment spending is spending on:

GDP per capita measures the value of all intermediate goods and services produced in the economy.

If,during 2011,the Republic of Sildavia recorded a GDP of $65 billion,interest payments of $15 billion,imports of $13 billion,profits of $7 billion,exports of $15 billion,and rent of $7 billion,wages during 2011 in Sildavia were:

Use the following to answer questions: -(Table: Lemonade and Cookies)Use Table: Lemonade and Cookies.Assume that an economy produces only lemonade and cookies.Assuming 2013 was the base year,the growth rate of real GDP from 2013 to 2014 was _____%.

Which item would NOT be a part of GDP?

GDP is the sum of:

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: Measuring GDP (billions of dollars)Use Table: Measuring GDP.Exports are:

Use the following to answer questions: -If real GDP rises while nominal GDP falls,then prices on average have:

An example of a non-factor payment would be

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

GDP counts the dollar value of only final goods and services because:

Suppose a consumer buys a Perfect Pizza frozen cheese pizza at the grocery store for $10.Perfect Pizza purchased the dough and tomato sauce from a food-processing company for $2 and bought the cheese for $1.It sold the pizza to the store for $5.How much has GDP increased?

In the Canadian economy,the circular-flow diagram does NOT illustrate:

The value of _____ is counted in GDP.

The consumer price index is calculated by the Department of Finance.

Assume that the real GDP of Macronesia is approximately $12 trillion and the population of Macronesia is approximately 300 million.What is per capita real GDP?

The calculation of GDP does NOT include the value of:

If the consumer price index increases from 125 to 130 in 1 year,the rate of inflation is 5%.

The money spent on domestically produced final goods and services is:

A household is a person or group of people who buy resources and produce goods and services.

Investment spending is spending on:

GDP per capita measures the value of all intermediate goods and services produced in the economy.

If,during 2011,the Republic of Sildavia recorded a GDP of $65 billion,interest payments of $15 billion,imports of $13 billion,profits of $7 billion,exports of $15 billion,and rent of $7 billion,wages during 2011 in Sildavia were:

Use the following to answer questions: -(Table: Lemonade and Cookies)Use Table: Lemonade and Cookies.Assume that an economy produces only lemonade and cookies.Assuming 2013 was the base year,the growth rate of real GDP from 2013 to 2014 was _____%.

Which item would NOT be a part of GDP?

GDP is the sum of:

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