Question 1

Using a graph, draw and label the phases and turning points of the business cycle.

Accepted Answer

@#IMG-DLM& The figur

Question 2

The circular flow diagram shows that

Accepted Answer

A)  the total amount of income generated by the economy equals the total purchases of final goods and services. 
B)  consumption expenditure equals saving. 
C)  the flow of payments to the factors used to produce goods and services exceeds the flow of payments for final goods and services. 
D)  goods and factor markets are independent. 
A)  the total amount of income generated by the economy equals the total purchases of final goods and services. 
B)  consumption expenditure equals saving. 
C)  the flow of payments to the factors used to produce goods and services exceeds the flow of payments for final goods and services. 
D)  goods and factor markets are independent.

Question 3

Canadaʹs economy expanded by...0.1 percent in the second quarter...further evidence that the economy has stalled...following a first quarter slip in gross domestic product. The second quarter figures fell well below forecasts of a 0.7 per cent growth in real GDP. Exports.	fell for the fourth consecutive quarter. The accumulating gloom is increasingly
discouraging business investment. Consumer spending remains strong and corporate profits were at their highest since 2004. ʺThe sources of strength in the second quarter are clearly unsustainable,ʺ said Sal Gautieri, senior economist at BMO capital markets.
Canada Avoids Fall into Recession, www.FT.com, by Christopher Mason, August 30, 2008
-According to the article,_________ in_________ have contributed to Canadaʹs_________ change in real GDP.

Accepted Answer

A)  decreases; exports and investment; unexpected 
B)  decreases; exports and government spending; expected 
C)  increases; consumption and investment; unexpected 
D)  increases; consumption and exports; expected 
A)  decreases; exports and investment; unexpected 
B)  decreases; exports and government spending; expected 
C)  increases; consumption and investment; unexpected 
D)  increases; consumption and exports; expected

Question 4

What kind of information is conveyed in a time-series graph?

Accepted Answer

A time series graph reveals four types o

Question 5

Trend refers to

Accepted Answer

A)  a general tendency for a variable to rise or fall. 
B)  the scale used on the x- and y-coordinates. 
C)  increases but not decreases of a variable. 
D)  decreases but not increases of a variable. 
A)  a general tendency for a variable to rise or fall. 
B)  the scale used on the x- and y-coordinates. 
C)  increases but not decreases of a variable. 
D)  decreases but not increases of a variable.

Question 6

When calculating the compensation of employees part of GDP,

Accepted Answer

A)  the value of vacation time must be included. 
B)  social security contributions must be included. 
C)  taxes withheld on earnings are not included. 
D)  fringe benefits are not included. 
A)  the value of vacation time must be included. 
B)  social security contributions must be included. 
C)  taxes withheld on earnings are not included. 
D)  fringe benefits are not included.

Question 7

An economic expansion rather than a recession occurs

Accepted Answer

A)  when the unemployment rate is not changing. 
B)  when the unemployment rate falls below 5 percent. 
C)  when the federal budget is balanced. 
D)  when growth in real GDP is positive. 
A)  when the unemployment rate is not changing. 
B)  when the unemployment rate falls below 5 percent. 
C)  when the federal budget is balanced. 
D)  when growth in real GDP is positive.

Question 8

Real GDP is not a perfect indicator of economic welfare because_________ .

Accepted Answer

A)  economic welfare depends on many factors not measured or not measured accurately by real GDP 
B)  it includes the underground economy 
C)  it includes a direct measure of health and life expectancy 
D)  it underestimates inflation 
A)  economic welfare depends on many factors not measured or not measured accurately by real GDP 
B)  it includes the underground economy 
C)  it includes a direct measure of health and life expectancy 
D)  it underestimates inflation

Question 9

The largest component of income is proprietorsʹ income.

Accepted Answer

A) True 
 B)False

Question 10

The business cycle progresses from an expansion to a peak to a recession and then to a trough.

Accepted Answer

A) True 
 B)False

Question 11

To measure economic welfare, one needs only to measure real GDP.

Accepted Answer

A) True 
 B)False

Question 12

The following data are estimates describing Ireland?s economy in 2006 and 2007 in millions of euros, in constant prices): $$\begin{array} { l r r } 
& \mathbf { 2 0 0 6 } & \mathbf { 2 0 0 7 } \
\text { Consumption } & 84,000 & 89,000 \
\text { Government expenditure } & 24,000 & 26,000 \
\text { Investment } & 48,000 & 48,000 \
\text { Exports } & 142,000 & 151,000 \
\text { Imports } & 123,000 & 128,000 \
\text { Subsidies } & 1,800 & 1,900 \
\text { Taxes } & 500 & 500
\end{array}$$ Ireland?s real GDP in 2007 was million euros.

Accepted Answer

A)  163,000 
B)  442,000 
C)  186,000 
D)  188,400 
A)  163,000 
B)  442,000 
C)  186,000 
D)  188,400

Question 13

Personal consumption expenditures include all of the following EXCEPT spending on

Accepted Answer

A)  consumer nondurable goods. 
B)  consumer durable goods. 
C)  new housing. 
D)  consumer services. 
A)  consumer nondurable goods. 
B)  consumer durable goods. 
C)  new housing. 
D)  consumer services.

Question 14

Net investment equals gross investment minus depreciation.

Accepted Answer

A) True 
 B)False

Question 15

Which type of graph is used to identify trends?

Accepted Answer

A)  time-series 
B)  cross-section 
C)  scatter diagram 
D)  None of the above answers is correct. 
A)  time-series 
B)  cross-section 
C)  scatter diagram 
D)  None of the above answers is correct.

Question 16

Transfer payments are not part of government expenditure on goods and services because transfer payments

Accepted Answer

A)  The premise of the question is incorrect because transfer payments are part of government purchases of goods and services. 
B)  do not represent the purchase of a final good or service. 
C)  are not always spent on goods produced in the U.S. 
D)  are not predictable given the nature of their appropriation and allocation. 
A)  The premise of the question is incorrect because transfer payments are part of government purchases of goods and services. 
B)  do not represent the purchase of a final good or service. 
C)  are not always spent on goods produced in the U.S. 
D)  are not predictable given the nature of their appropriation and allocation.

Question 17

When gross investment is greater than depreciation, then the nationʹs capital stock increased.

Accepted Answer

A) True 
 B)False

Question 18

Consumption expenditure is the payment by households for consumption of

Accepted Answer

A)  goods and services. 
B)  services and for saving. 
C)  services but not goods. 
D)  goods but not services. 
A)  goods and services. 
B)  services and for saving. 
C)  services but not goods. 
D)  goods but not services.

Question 19

Which of the following is TRUE regarding a trend?
I. A cross section graph shows trends.
II. A time-series graph shows trends.
III. A scatter plot shows trends over time.

Accepted Answer

A)  II 
B)  II and III 
C)  I 
D)  I and II 
A)  II 
B)  II and III 
C)  I 
D)  I and II

Question 20

Gross private domestic investment is all purchases of newly produced business capital goods and buildings

Accepted Answer

A)  plus purchases of capital goods produced in previous years to replace any depreciated capital goods. 
B)  plus the change in business inventories plus residential construction. 
C)  plus fixed investment minus inventory investment. 
D)  minus the change in business inventories. 
A)  plus purchases of capital goods produced in previous years to replace any depreciated capital goods. 
B)  plus the change in business inventories plus residential construction. 
C)  plus fixed investment minus inventory investment. 
D)  minus the change in business inventories.

Using a graph, draw and label the phases and turning points of the business cycle.

The circular flow diagram shows that

What kind of information is conveyed in a time-series graph?

Trend refers to

When calculating the compensation of employees part of GDP,

An economic expansion rather than a recession occurs

Real GDP is not a perfect indicator of economic welfare because_________ .

The largest component of income is proprietorsʹ income.

The business cycle progresses from an expansion to a peak to a recession and then to a trough.

To measure economic welfare, one needs only to measure real GDP.

Personal consumption expenditures include all of the following EXCEPT spending on

Net investment equals gross investment minus depreciation.

Which type of graph is used to identify trends?

Transfer payments are not part of government expenditure on goods and services because transfer payments

When gross investment is greater than depreciation, then the nationʹs capital stock increased.

Consumption expenditure is the payment by households for consumption of

Which of the following is TRUE regarding a trend? I. A cross section graph shows trends. II. A time-series graph shows trends. III. A scatter plot shows trends over time.

Gross private domestic investment is all purchases of newly produced business capital goods and buildings

What Is Economics

The Economic Problem

Demand and Supply

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 4: Measuring Gdp and Economic Growth

Using a graph, draw and label the phases and turning points of the business cycle.

The circular flow diagram shows that

What kind of information is conveyed in a time-series graph?

Trend refers to

When calculating the compensation of employees part of GDP,

An economic expansion rather than a recession occurs

Real GDP is not a perfect indicator of economic welfare because_________ .

The largest component of income is proprietorsʹ income.

The business cycle progresses from an expansion to a peak to a recession and then to a trough.

To measure economic welfare, one needs only to measure real GDP.

Personal consumption expenditures include all of the following EXCEPT spending on

Net investment equals gross investment minus depreciation.

Which type of graph is used to identify trends?

Transfer payments are not part of government expenditure on goods and services because transfer payments

When gross investment is greater than depreciation, then the nationʹs capital stock increased.

Consumption expenditure is the payment by households for consumption of

Which of the following is TRUE regarding a trend? I. A cross section graph shows trends. II. A time-series graph shows trends. III. A scatter plot shows trends over time.

Gross private domestic investment is all purchases of newly produced business capital goods and buildings

What Is Economics

The Economic Problem

Demand and Supply

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters