Question 1

Most households derive the bulk of their income from:

Accepted Answer

A)  wages. 
B)  interest. 
C)  profit. 
D)  rent. 
A)  wages. 
B)  interest. 
C)  profit. 
D)  rent.

Question 2

Use the following to answer questions:  
-(Table: The Consumer Price Index)Use Table: The Consumer Price Index.The approximate rate of inflation in year 5 is:

Accepted Answer

A)  25%. 
B)  10%. 
C)  19%. 
D)  20%. 
A)  25%. 
B)  10%. 
C)  19%. 
D)  20%.

Question 3

If Canada exports $500 of goods and services and imports $700 of goods and services,net exports are $1 200.

Accepted Answer

A) True 
 B)False

Question 4

Enchanté Inc. ,a designer clothing company,buys $400 worth of silk and $30 worth of accessories to produce each dress.If the value added by Enchanté is equal to $200,then according to the value-added approach,the price of the designer dress should be:

Accepted Answer

A)  $630. 
B)  $230. 
C)  $200. 
D)  $830. 
A)  $630. 
B)  $230. 
C)  $200. 
D)  $830.

Question 5

Purchases of foreign-produced goods and services are:

Accepted Answer

A)  net exports. 
B)  exports. 
C)  imports. 
D)  transfer payments. 
A)  net exports. 
B)  exports. 
C)  imports. 
D)  transfer payments.

Question 6

The underlying principle of the circular-flow diagram is that the flows of money into each sector or market in the economy are greater than those coming out of the sector or market.

Accepted Answer

A) True 
 B)False

Question 7

The total value of all final goods and services produced in the economy in a given year,calculated with the prices current in the year in which the output is produced,is nominal GDP.

Accepted Answer

A) True 
 B)False

Question 8

The BEST available common measure of a nation's standard of living is:

Accepted Answer

A)  nominal GDP. 
B)  market GDP. 
C)  real GDP per capita. 
D)  nominal GDP per capita. 
A)  nominal GDP. 
B)  market GDP. 
C)  real GDP per capita. 
D)  nominal GDP per capita.

Question 9

The aggregate price level is the average of stock prices on the S&P/TSX Composite Index.

Accepted Answer

A) True 
 B)False

Question 10

Between 2013 and 2015,the nominal GDP of Venezuela grew by 29% annually because prices in Venezuela decreased rapidly during the period.

Accepted Answer

A) True 
 B)False

Question 11

You read in the newspaper that the consumer price index in 2011 was 120.You conclude that a typical market basket in 2011 would have cost _____ more than the same market basket purchased in _____.

Accepted Answer

A)  20%;2010 
B)  120%;2010 
C)  20%;the base year 
D)  120%;the base year 
A)  20%;2010 
B)  120%;2010 
C)  20%;the base year 
D)  120%;the base year

Question 12

Historically,_____ spending was the LARGEST component of Canadian GDP,at approximately 60% of aggregate spending.

Accepted Answer

A)  government 
B)  consumer 
C)  investment 
D)  net export 
A)  government 
B)  consumer 
C)  investment 
D)  net export

Question 13

Use the following to answer questions:  
-(Table: Peanut Butter and Jelly Economy)Use Table: Peanut Butter and Jelly Economy.Nominal GDP in 2010 was:

Accepted Answer

A)  $200. 
B)  $400. 
C)  $450. 
D)  $525. 
A)  $200. 
B)  $400. 
C)  $450. 
D)  $525.

Question 14

Use the following to answer questions:  
-(Table: Peanut Butter and Jelly)Use Table: Peanut Butter and Jelly.Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly.What is the value of the market basket in 2014?

Accepted Answer

A)  $62 
B)  $49 
C)  $42 
D)  $44.50 
A)  $62 
B)  $49 
C)  $42 
D)  $44.50

Question 15

The GDP deflator is another name for the consumer price index.

Accepted Answer

A) True 
 B)False

Question 16

A market basket used to measure the aggregate price level is a group of stocks that the wealthiest investors own.

Accepted Answer

A) True 
 B)False

Question 17

Use the following to answer questions:  
-(Table: Peanut Butter and Jelly)Use Table: Peanut Butter and Jelly.Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly.If 2012 is the base year,what is the rate of inflation between 2013 and 2014?

Accepted Answer

A)  4.9% 
B)  11.25% 
C)  22.5% 
D)  10.1% 
A)  4.9% 
B)  11.25% 
C)  22.5% 
D)  10.1%

Question 18

In the circular-flow diagram,households:

Accepted Answer

A)  supply goods. 
B)  supply services. 
C)  buy resources. 
D)  buy goods and services. 
A)  supply goods. 
B)  supply services. 
C)  buy resources. 
D)  buy goods and services.

Question 19

Use the following to answer question :  
-(Table: Pizza Economy II)Use Table: Pizza Economy II.GDP in this economy is:

Accepted Answer

A)  $74000. 
B)  $5000. 
C)  $29000. 
D)  $16000. 
A)  $74000. 
B)  $5000. 
C)  $29000. 
D)  $16000.

Question 20

The circular-flow diagram illustrates:

Accepted Answer

A)  the minimum wage state by state. 
B)  fluctuations in exchange rates. 
C)  changes in worker productivity. 
D)  the key concepts in the national accounts. 
A)  the minimum wage state by state. 
B)  fluctuations in exchange rates. 
C)  changes in worker productivity. 
D)  the key concepts in the national accounts.

Most households derive the bulk of their income from:

Use the following to answer questions: -(Table: The Consumer Price Index)Use Table: The Consumer Price Index.The approximate rate of inflation in year 5 is:

If Canada exports $500 of goods and services and imports $700 of goods and services,net exports are $1 200.

Enchanté Inc. ,a designer clothing company,buys $400 worth of silk and $30 worth of accessories to produce each dress.If the value added by Enchanté is equal to $200,then according to the value-added approach,the price of the designer dress should be:

Purchases of foreign-produced goods and services are:

The underlying principle of the circular-flow diagram is that the flows of money into each sector or market in the economy are greater than those coming out of the sector or market.

The total value of all final goods and services produced in the economy in a given year,calculated with the prices current in the year in which the output is produced,is nominal GDP.

The BEST available common measure of a nation's standard of living is:

The aggregate price level is the average of stock prices on the S&P/TSX Composite Index.

Between 2013 and 2015,the nominal GDP of Venezuela grew by 29% annually because prices in Venezuela decreased rapidly during the period.

You read in the newspaper that the consumer price index in 2011 was 120.You conclude that a typical market basket in 2011 would have cost _ more than the same market basket purchased in _.

Historically,_____ spending was the LARGEST component of Canadian GDP,at approximately 60% of aggregate spending.

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy)Use Table: Peanut Butter and Jelly Economy.Nominal GDP in 2010 was:

Use the following to answer questions: -(Table: Peanut Butter and Jelly)Use Table: Peanut Butter and Jelly.Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly.What is the value of the market basket in 2014?

The GDP deflator is another name for the consumer price index.

A market basket used to measure the aggregate price level is a group of stocks that the wealthiest investors own.

Use the following to answer questions: -(Table: Peanut Butter and Jelly)Use Table: Peanut Butter and Jelly.Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly.If 2012 is the base year,what is the rate of inflation between 2013 and 2014?

In the circular-flow diagram,households:

Use the following to answer question : -(Table: Pizza Economy II)Use Table: Pizza Economy II.GDP in this economy is:

The circular-flow diagram illustrates:

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 households derive the bulk of their income from:

Use the following to answer questions: -(Table: The Consumer Price Index)Use Table: The Consumer Price Index.The approximate rate of inflation in year 5 is:

If Canada exports $500 of goods and services and imports $700 of goods and services,net exports are $1 200.

Enchanté Inc. ,a designer clothing company,buys $400 worth of silk and $30 worth of accessories to produce each dress.If the value added by Enchanté is equal to $200,then according to the value-added approach,the price of the designer dress should be:

Purchases of foreign-produced goods and services are:

The underlying principle of the circular-flow diagram is that the flows of money into each sector or market in the economy are greater than those coming out of the sector or market.

The total value of all final goods and services produced in the economy in a given year,calculated with the prices current in the year in which the output is produced,is nominal GDP.

The BEST available common measure of a nation's standard of living is:

The aggregate price level is the average of stock prices on the S&P/TSX Composite Index.

Between 2013 and 2015,the nominal GDP of Venezuela grew by 29% annually because prices in Venezuela decreased rapidly during the period.

You read in the newspaper that the consumer price index in 2011 was 120.You conclude that a typical market basket in 2011 would have cost _____ more than the same market basket purchased in _____.

Historically,_____ spending was the LARGEST component of Canadian GDP,at approximately 60% of aggregate spending.

Use the following to answer questions: -(Table: Peanut Butter and Jelly Economy)Use Table: Peanut Butter and Jelly Economy.Nominal GDP in 2010 was:

Use the following to answer questions: -(Table: Peanut Butter and Jelly)Use Table: Peanut Butter and Jelly.Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly.What is the value of the market basket in 2014?

The GDP deflator is another name for the consumer price index.

A market basket used to measure the aggregate price level is a group of stocks that the wealthiest investors own.

Use the following to answer questions: -(Table: Peanut Butter and Jelly)Use Table: Peanut Butter and Jelly.Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly.If 2012 is the base year,what is the rate of inflation between 2013 and 2014?

In the circular-flow diagram,households:

Use the following to answer question : -(Table: Pizza Economy II)Use Table: Pizza Economy II.GDP in this economy is:

The circular-flow diagram illustrates:

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

You read in the newspaper that the consumer price index in 2011 was 120.You conclude that a typical market basket in 2011 would have cost _ more than the same market basket purchased in _.