Deck 5: Economic Indicators

Question 1

Approximately how many households does Canada's Labour Force Survey cover each month?

A) 60 000
B) 40 000
C) 30 000
D) 50 000

Answer 1

50 000

Question 2

Which of the following groups is included in the Labour Force Survey?

A) students
B) persons living on Indian reservations
C) inmates in institutions
D) members of the armed forces

Answer 2

students

Question 3

The participation rate refers to:

A) the percentage of the population that is working.
B) the percentage of the labour force that is working or looking for work.
C) the percentage of the population that is working or looking for work.
D) the percentage of the labour force that is working.

Answer 3

the percentage of the population that is working or looking for work.

Question 4

Once surveyed, a household remains a part of the Labour Force Survey for:

A) one year.
B) one month.
C) three months.
D) six months.

Question 5

The unemployment rate refers to:

A) the percentage of the population that is without work and is looking for work.
B) the percentage of the labour force that is without work and is looking for work.
C) the population minus those who are employed.
D) the labour force minus those who are employed.

Question 6

The unemployment rate is traditionally the highest for which province?

A) Alberta
B) Saskatchewan
C) Quebec
D) Newfoundland and Labrador

Question 7

In 2005, ____________ had the lowest unemployment rate

A) Quebec
B) Newfoundland and Labrador
C) Saskatchewan
D) Alberta

Question 8

Which of the following is not a shortcoming of the Labour Force Survey?

A) it is difficult to determine what percentage of the labour force is employed because some workers may be on sick leave
B) it is difficult to determine how many discouraged workers there are
C) it is difficult to determine how hard someone has looked for work
D) it is difficult to measure the amount of underemployment

Question 9

Which of the following is not a shortcoming of the Labour Force Survey?

A) seasonal employment changes are not identified
B) the survey does not measure financial hardship
C) multiple job holders are not recognized
D) it is impossible to determine why someone is out of work

Question 10

For which of the following provinces does the participation rate tend to be the highest?

A) Quebec
B) New Brunswick
C) Manitoba
D) Alberta

Question 11

For which of the following provinces does the participation rate tend to be the lowest?

A) New Brunswick
B) Quebec
C) Manitoba
D) Alberta

Question 12

Of all the age groups which one has the highest unemployment rate?

A) 25-44 years
B) 45-64 years
C) 65+ years
D) 15-24 years

Question 13

Of all the age groups which one has the highest participation rate?

A) 25-44 years
B) 45-64 years
C) 65+ years
D) 15-24 years

Question 14

Which of the following has not led to the increased participation rate of women in the labour force?

A) improvements in household technology
B) men retiring earlier
C) smaller families
D) changes in the attitudes of society toward women working outside the home

Question 15

Discouraged workers are:

A) people who have given up looking for work and are no longer in the labour force.
B) people who are employed and have a difficult time finding work.
C) people working at jobs that do not fully utilize their skills.
D) people whose skills are no longer required by their employer and who must undertake training in a new area.

Question 16

Which of the following is not a type of unemployment?

A) structural
B) seasonal
C) demand-pull
D) insurance-induced

Question 17

Underemployment refers to:

A) people working part time after school and on weekends.
B) a situation in which you report to a supervisor or are under someone's supervision.
C) working at a job that does not fully utilize your skills.
D) being out of work but looking for a job in the field in which you are qualified.

Question 18

Frictional unemployment refers to a situation in which:

A) a person who is unemployed does not have the required training to fill job vacancies.
B) unemployed people who are between jobs.
C) an unemployed person lived in Halifax and because of distance cannot fill a job vacancy in Winnipeg.
D) people who are unemployed because of a reduction in the demand for the product that they make.

Question 19

Structural unemployment occurs when:

A) attractive unemployment insurance benefits discourage people from taking a job.
B) unemployed people do not have the required skills to fill job vacancies.
C) the name of the industry changes, such as the switch from big cars to small cars.
D) unemployed workers are between jobs.

Question 20

Darlene Chandra quit her present job. She left in order to have time to think about a number of Job offers that she has recently received. Darlene Chandra is:

A) seasonally unemployed.
B) structurally unemployed.
C) frictionally unemployed.
D) technically, still employed.

Question 21

David O'Hara lives in Oshawa, Ontario. He works in a grocery store. Recently, the major Him because Employer in Oshawa, General Motors, announced massive layoffs. Mr. O'Hara's employer told That of the General Motors Layoff, he Would Have to Lay him Off as Well. We Could Say that
David is:

A) unemployed because of demand-deficient reasons.
B) seasonally unemployed.
C) structurally unemployed.
D) frictionally unemployed.

Question 22

The Labour Force Survey is conducted:

A) monthly.
B) semi-annually.
C) weekly.
D) yearly.

Question 23

Canada's unemployment rate in 2005 was approximately:

A) 7 percent.
B) 8 percent.
C) 9 percent.
D) 6 percent.

Question 24

Of all the consumer items in the Consumer Price Index, which one has the largest weighing?

A) clothing and footwear
B) transportation
C) shelter
D) food

Question 25

In 2005 the Consumer Price Index for Ottawa was 130.2 and for Victoria it was 125.5. This means:

A) that prices have increased by a greater percentage in Ottawa than Victoria over the last year.
B) that prices have increased by a greater percentage in Ottawa than Victoria since 1992.
C) that prices were higher in Victoria than Ottawa.
D) None of the above is necessarily correct.

Question 26

Which of the following statements about inflation is correct?

A) inflation hurts creditors and assists debtors
B) inflation assists Canadian exports but hurts imports
C) inflation assists those on fixed incomes
D) inflation increases the purchasing power of the dollar

Question 27

The Consumer Price Index is calculated:

A) yearly.
B) semi-annually.
C) weekly.
D) monthly.

Question 28

The Consumer Price Index is not a cost-of-living index because:

A) not all consumer items are included in the index.
B) each individual spends his or her money in a different manner.
C) items are included in the index that consumers do not purchase but businesses do purchase.
D) the prices of some items in the index rarely change whereas the cost of living is constantly changing.

Question 29

The item having the greatest weight in the Consumer Price Index is:

A) transportation.
B) clothing.
C) food.
D) shelter.

Question 30

Which of the following statements is not correct?

A) inflation hurts debtors and helps creditors
B) the weighting of goods in the CPI is determined from a survey of family expenditures
C) inflation reduces the value of one's savings
D) the CPI is not an indicator of changes in cost of living

Question 31

Hyperinflation occurs when:

A) the cost of resources increases drastically.
B) businesses start earning excess profits.
C) governments print too much money.
D) foreigners purchase too many Canadian products.

Question 32

Canada's GDP in 2005 was approximately:

A) $1350 billion.
B) $1150 billion.
C) $1100 billion.
D) $900 billion.

Question 33

The following item is not included in the calculation of gross domestic product (expenditure approach):

A) consumption.
B) corporation profits.
C) exports.
D) gross investment.

Question 34

Investment, as part of the calculation of GDP, includes:

A) the purchase of shares in a company listed on the stock exchange.
B) spending by both business and government on new machinery, equipment, and buildings.
C) the purchase of a Government of Canada bond.
D) spending by the business community alone on factories, equipment, and raw materials.

Question 35

Which of the following is not an investment item in national accounting terms?

A) purchasing shares in a large manufacturing company
B) an increase in the number of unsold cars on dealers' lots
C) construction of a nuclear-power plant
D) building a new school

Question 36

Net investment is equal to:

A) gross investment minus corporation income taxes.
B) gross investment minus capital consumption allowance.
C) gross investment minus inventories.
D) gross investment minus indirect business taxes.

Question 37

Government transfer payments are not included in the calculation of GDP because:

A) they are ongoing payments and do not vary from year to year.
B) federal government expenditures alone are included in GDP.
C) they are issued by all levels of government and are difficult to add up.
D) they are not payments for a currently produced good or service.

Question 38

Which of the following would not be classified as a government transfer payment?

A) welfare payments
B) unemployment-insurance payments
C) military expenditures
D) old-age pensions

Question 39

Which of the following is not part of the "corporation profits before taxes" component of GDP?

A) corporation income taxes
B) return on investment
C) undistributed corporation profits
D) dividends

Question 40

The difference between GDP and GNE is:

A) GDP includes capital consumption allowance whereas GNE does not.
B) they are identical-GDP is the new term and GNE is the old term.
C) GDP considers activity undertaken by Canadians and GNE considers activity undertaken in Canada.
D) that GDP considers activity undertaken in Canada and GNE considers activity undertaken by Canadians.

Question 41

Net domestic product includes all but which one of the following items?

A) rent
B) interest
C) corporation profits before taxes
D) indirect business taxes

Question 42

Net domestic product is equal to GDP minus:

A) capital-consumption allowance and indirect business taxes.
B) interest and capital-consumption allowance.
C) interest and indirect business taxes.
D) capital-consumption allowance and corporation income taxes.

Question 43

Which of the following is not included in GDP?

A) the sale of used cars
B) the building of an office tower
C) the purchase of a coffee and a doughnut
D) the sale of new computer software

Question 44

Real GDP is calculated:

A) in order to measure only the real physical goods that have been produced.
B) in order to measure price increases.
C) in order to compare Canada's GDP with that of other countries.
D) in order to measure the impact of population increases on the production of goods and services.

Question 45

If you grow vegetables in your garden, the enterprise is not included in GDP because:

A) actually the value of the vegetables is included in GDP.
B) no one knows how much it cost you to grow them.
C) you are not a registered company.
D) if you do not sell them, there is no market price involved.

Question 46

Which of the following is included in GDP?

A) growing vegetables in your garden
B) cutting the grass on Parliament Hill
C) helping with the Canadian Cancer Society
D) selling an illegal article on the streets

Question 47

Personal disposable income is equal to:

A) consumption plus personal income taxes.
B) personal consumption plus savings.
C) gross investment minus savings.
D) net domestic income minus personal income taxes.

Question 48

If GDP was $400 billion, indirect business taxes were $25 billion and capital-consumption allowance was $15 billion, the net domestic product would be:

A) $410 billion.
B) $390 billion.
C) $360 billion.
D) $440 billion.

Question 49

If personal income equals $450, employment (CPP, EI) taxes equal $400, corporate profits taxes equal $250, undistributed corporate profits equal $300, transfer payments equal $500, and personal income taxes equal $600, then personal income is equal to:

A) $3450
B) $2450
C) $3750
D) $4050