Question 1

Most of the value added included in GDP in Canada is added by businesses,rather than by consumers.

Accepted Answer

A) True 
 B)False

Question 2

Use the following to answer questions:  
-Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.Government purchases of goods and services are:

Accepted Answer

A)  $50 billion. 
B)  $100 billion. 
C)  $200 billion. 
D)  $300 billion. 
A)  $50 billion. 
B)  $100 billion. 
C)  $200 billion. 
D)  $300 billion.

Question 3

Use the following to answer questions:  
-(Table: Per Capita GDP)Use Table: Per Capita GDP.The growth rate of real GDP from 2011 to 2014 was:

Accepted Answer

A)  10%. 
B)  20%. 
C)  25%. 
D)  33%. 
A)  10%. 
B)  20%. 
C)  25%. 
D)  33%.

Question 4

Which example illustrates consumption?

Accepted Answer

A)  a new computer purchased by Canada Post for one of its executives 
B)  a storage facility for a moving company 
C)  a new car purchased for personal use 
D)  a dump truck purchased by a demolition company 
A)  a new computer purchased by Canada Post for one of its executives 
B)  a storage facility for a moving company 
C)  a new car purchased for personal use 
D)  a dump truck purchased by a demolition company

Question 5

Nominal GDP is:

Accepted Answer

A)  inflation-adjusted GDP. 
B)  real GDP minus depreciation. 
C)  current-dollar GDP. 
D)  constant-dollar GDP. 
A)  inflation-adjusted GDP. 
B)  real GDP minus depreciation. 
C)  current-dollar GDP. 
D)  constant-dollar GDP.

Question 6

In the circular-flow diagram,firms:

Accepted Answer

A)  demand goods. 
B)  demand services. 
C)  supply resources. 
D)  demand resources. 
A)  demand goods. 
B)  demand services. 
C)  supply resources. 
D)  demand resources.

Question 7

Use the following to answer questions:  
-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.Nominal GDP this year is:

Accepted Answer

A)  $100. 
B)  $650. 
C)  $700. 
D)  $500. 
A)  $100. 
B)  $650. 
C)  $700. 
D)  $500.

Question 8

The GDP deflator 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 9

Renting a car to go on a vacation will result in more GDP than it will if you use your own car.

Accepted Answer

A) True 
 B)False

Question 10

Which example is NOT a government transfer?

Accepted Answer

A)  employment insurance compensation 
B)  pension benefits 
C)  payments by the Ministry of Defense for a new weapons system 
D)  old age security payments 
A)  employment insurance compensation 
B)  pension benefits 
C)  payments by the Ministry of Defense for a new weapons system 
D)  old age security payments

Question 11

Use the following to answer questions:  
-(Table: Lemonade and Cookies)Use Table: Lemonade and Cookies.Assume that an economy produces only lemonade and cookies.Nominal GDP in 2014 was:

Accepted Answer

A)  $400. 
B)  $420. 
C)  $445. 
D)  $820. 
A)  $400. 
B)  $420. 
C)  $445. 
D)  $820.

Question 12

Choose the best answer.A price index:

Accepted Answer

A)  always includes a base year. 
B)  measures the cost of purchasing a market basket of output across different years. 
C)  is normalized to 100 for the base year. 
D)  always includes a base year,measures the cost of purchasing a market basket of output across different years,and is normalized to 100 for the base year. 
A)  always includes a base year. 
B)  measures the cost of purchasing a market basket of output across different years. 
C)  is normalized to 100 for the base year. 
D)  always includes a base year,measures the cost of purchasing a market basket of output across different years,and is normalized to 100 for the base year.

Question 13

Use the following to answer questions:  
-(Table: Per Capita GDP)Use Table: Per Capita GDP.The growth rate of per capita nominal GDP was:

Accepted Answer

A)  10%. 
B)  20%. 
C)  25%. 
D)  33%. 
A)  10%. 
B)  20%. 
C)  25%. 
D)  33%.

Question 14

Use the following to answer questions:  
-The total value of all final goods and services produced in a given year,calculated with the prices current in the year in which the output is produced,is:

Accepted Answer

A)  real GDP. 
B)  nominal GDP. 
C)  net exports. 
D)  consumption spending. 
A)  real GDP. 
B)  nominal GDP. 
C)  net exports. 
D)  consumption spending.

Question 15

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 in 2010 was:

Accepted Answer

A)  $80. 
B)  $53. 
C)  $60. 
D)  $100. 
A)  $80. 
B)  $53. 
C)  $60. 
D)  $100.

Question 16

GDP may be calculated as the sum of:

Accepted Answer

A)  consumer spending,investment spending,government purchases of goods and services,and exports minus imports. 
B)  consumer spending,investment spending,government transfer payments,and exports minus imports. 
C)  consumer spending,investment spending,government purchases of goods and services,and exports. 
D)  exports and imports only. 
A)  consumer spending,investment spending,government purchases of goods and services,and exports minus imports. 
B)  consumer spending,investment spending,government transfer payments,and exports minus imports. 
C)  consumer spending,investment spending,government purchases of goods and services,and exports. 
D)  exports and imports only.

Question 17

Which statement about gross domestic product is FALSE?

Accepted Answer

A)  It is aggregate output. 
B)  It is the total production of final goods and services. 
C)  It grows during an expansion. 
D)  It is the total production of all final and intermediate goods and services. 
A)  It is aggregate output. 
B)  It is the total production of final goods and services. 
C)  It grows during an expansion. 
D)  It is the total production of all final and intermediate goods and services.

Question 18

Use the following to answer questions:  
-(Table: Pizza Economy III)Use Table: Pizza Economy III.Using 2010 as the base year,nominal 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 19

The Venezuela example illustrates:

Accepted Answer

A)  that the difference between nominal and real GDP is negligible in most cases. 
B)  that there is no difference between nominal and real GDP in the real world. 
C)  the importance of distinguishing between nominal and real GDP. 
D)  that GNP,rather than GDP,is a better measure of a country's economic activity. 
A)  that the difference between nominal and real GDP is negligible in most cases. 
B)  that there is no difference between nominal and real GDP in the real world. 
C)  the importance of distinguishing between nominal and real GDP. 
D)  that GNP,rather than GDP,is a better measure of a country's economic activity.

Question 20

If the dollar amount of nominal GDP decreases,then aggregate output is definitely decreasing.

Accepted Answer

A) True 
 B)False

Most of the value added included in GDP in Canada is added by businesses,rather than by consumers.

Use the following to answer questions: -Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.Government purchases of goods and services are:

Use the following to answer questions: -(Table: Per Capita GDP)Use Table: Per Capita GDP.The growth rate of real GDP from 2011 to 2014 was:

Which example illustrates consumption?

Nominal GDP is:

In the circular-flow diagram,firms:

Use the following to answer questions: -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.Nominal GDP this year is:

The GDP deflator measures changes in the cost of a market basket of raw commodities,such as steel,electricity,and coal.

Renting a car to go on a vacation will result in more GDP than it will if you use your own car.

Which example is NOT a government transfer?

Use the following to answer questions: -(Table: Lemonade and Cookies)Use Table: Lemonade and Cookies.Assume that an economy produces only lemonade and cookies.Nominal GDP in 2014 was:

Choose the best answer.A price index:

Use the following to answer questions: -(Table: Per Capita GDP)Use Table: Per Capita GDP.The growth rate of per capita nominal GDP was:

Use the following to answer questions: -The total value of all final goods and services produced in a given year,calculated with the prices current in the year in which the output is produced,is:

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 in 2010 was:

GDP may be calculated as the sum of:

Which statement about gross domestic product is FALSE?

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

The Venezuela example illustrates:

If the dollar amount of nominal GDP decreases,then aggregate output is definitely decreasing.

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

Most of the value added included in GDP in Canada is added by businesses,rather than by consumers.

Use the following to answer questions: -Table: Measuring GDP (billions of dollars)Use Table: Measuring GDP.Government purchases of goods and services are:

Use the following to answer questions: -(Table: Per Capita GDP)Use Table: Per Capita GDP.The growth rate of real GDP from 2011 to 2014 was:

Which example illustrates consumption?

Nominal GDP is:

In the circular-flow diagram,firms:

Use the following to answer questions: -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.Nominal GDP this year is:

The GDP deflator measures changes in the cost of a market basket of raw commodities,such as steel,electricity,and coal.

Renting a car to go on a vacation will result in more GDP than it will if you use your own car.

Which example is NOT a government transfer?

Use the following to answer questions: -(Table: Lemonade and Cookies)Use Table: Lemonade and Cookies.Assume that an economy produces only lemonade and cookies.Nominal GDP in 2014 was:

Choose the best answer.A price index:

Use the following to answer questions: -(Table: Per Capita GDP)Use Table: Per Capita GDP.The growth rate of per capita nominal GDP was:

Use the following to answer questions: -The total value of all final goods and services produced in a given year,calculated with the prices current in the year in which the output is produced,is:

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 in 2010 was:

GDP may be calculated as the sum of:

Which statement about gross domestic product is FALSE?

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

The Venezuela example illustrates:

If the dollar amount of nominal GDP decreases,then aggregate output is definitely decreasing.

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