Question 1

To derive net domestic income at market prices from GDP income approach),

Accepted Answer

A) subtract depreciation from GDP. 
B) subtract gross investment from GDP. 
C) subtract the statistical discrepancy from GDP. 
D) add depreciation to GDP. 
E) add the statistical discrepancy to GDP. 
A) subtract depreciation from GDP. 
B) subtract gross investment from GDP. 
C) subtract the statistical discrepancy from GDP. 
D) add depreciation to GDP. 
E) add the statistical discrepancy to GDP.

Question 2

Table 4.4.1
-Refer to Table 4.4.1.At 2017 prices, the value of production from 2017 to 2018 has increased by

Accepted Answer

A) 144.0 percent. 
B) 145.5 percent. 
C) 60.0 percent. 
D) 54.5 percent. 
E) 1.455 percent. 
A) 144.0 percent. 
B) 145.5 percent. 
C) 60.0 percent. 
D) 54.5 percent. 
E) 1.455 percent.

Question 3

Use the table below to answer the following questions.
Table 4.2.4
  
-Refer to Table 4.2.4.Net investment is equal to

Accepted Answer

A) $360. 
B) $250. 
C) $510. 
D) $210. 
E) $860. 
A) $360. 
B) $250. 
C) $510. 
D) $210. 
E) $860.

Question 4

The sum of wages, salaries, and supplementary labour income, and other factor incomes is

Accepted Answer

A) net domestic income at market prices. 
B) GDP income approach). 
C) net domestic income at factor cost. 
D) real GDP. 
E) GDP expenditure approach). 
A) net domestic income at market prices. 
B) GDP income approach). 
C) net domestic income at factor cost. 
D) real GDP. 
E) GDP expenditure approach).

Question 5

Which one of the following would not be counted as part of this year's GDP?

Accepted Answer

A) the lumber you purchase so you can build bookshelves for your room 
B) the purchase of wheat that was produced in the current year by a Saskatchewan farmer 
C) the purchase of a new personal computer that was produced in Canada in the current year 
D) the government bond you buy for your newborn niece 
E) the purchase of a house that was built in the current year 
A) the lumber you purchase so you can build bookshelves for your room 
B) the purchase of wheat that was produced in the current year by a Saskatchewan farmer 
C) the purchase of a new personal computer that was produced in Canada in the current year 
D) the government bond you buy for your newborn niece 
E) the purchase of a house that was built in the current year

Question 6

Real GDP equals

Accepted Answer

A) nominal GDP minus the value of goods exported to foreign countries. 
B) nominal GDP adjusted for the depreciation of capital. 
C) the value of final goods and services produced in a given year when valued at the prices of a reference base year. 
D) nominal GDP minus the value of intermediate goods. 
E) nominal GDP minus the rate of inflation. 
A) nominal GDP minus the value of goods exported to foreign countries. 
B) nominal GDP adjusted for the depreciation of capital. 
C) the value of final goods and services produced in a given year when valued at the prices of a reference base year. 
D) nominal GDP minus the value of intermediate goods. 
E) nominal GDP minus the rate of inflation.

Question 7

In the circular flow model,

Accepted Answer

A) firms are sellers of goods and services in goods markets. 
B) firms are sellers of the factors in factor markets. 
C) households are buyers of goods and services in the factor markets. 
D) firms are buyers of goods and services in final markets. 
E) households are sellers of factor services in goods markets. 
A) firms are sellers of goods and services in goods markets. 
B) firms are sellers of the factors in factor markets. 
C) households are buyers of goods and services in the factor markets. 
D) firms are buyers of goods and services in final markets. 
E) households are sellers of factor services in goods markets.

Question 8

Use the table below to answer the following questions.
Table 4.2.4
  
-Which approach to measuring GDP is being used when Statistics Canada sums wages, salaries and supplementary labour income, and other factor incomes?

Accepted Answer

A) income approach 
B) value- added approach 
C) expenditure approach 
D) opportunity cost approach 
E) factor cost approach 
A) income approach 
B) value- added approach 
C) expenditure approach 
D) opportunity cost approach 
E) factor cost approach

Question 9

The purchasers in the goods markets are

Accepted Answer

A) households and firms only. 
B) households and net exporters only. 
C) households, firms, and government only. 
D) households and government only. 
E) households, firms, government, and those who import our goods. 
A) households and firms only. 
B) households and net exporters only. 
C) households, firms, and government only. 
D) households and government only. 
E) households, firms, government, and those who import our goods.

Question 10

All of the following statements are true except

Accepted Answer

A) the Lucas wedge arises from the slowdown of productivity growth that began during the 1970s. 
B) real GDP per person was $45,000 per year lower in 2016 than it would have been with no growth slowdown. 
C) the Lucas wedge accumulated to $790,000 per person by 2016. 
D) the Lucas wedge equals real GDP minus potential GDP. 
E) the Lucas wedge is the dollar value of the accumulated gap between what real GDP per person would have been if the 1960s growth rate had persisted and what real GDP per person turned out to be. 
A) the Lucas wedge arises from the slowdown of productivity growth that began during the 1970s. 
B) real GDP per person was $45,000 per year lower in 2016 than it would have been with no growth slowdown. 
C) the Lucas wedge accumulated to $790,000 per person by 2016. 
D) the Lucas wedge equals real GDP minus potential GDP. 
E) the Lucas wedge is the dollar value of the accumulated gap between what real GDP per person would have been if the 1960s growth rate had persisted and what real GDP per person turned out to be.

Question 11

Use the figure below to answer the following questions.
   Figure 4.3.1
-Refer to Figure 4.3.1.In the figure, the distance between points S and T represents

Accepted Answer

A) a recession. 
B) a peak. 
C) an expansion. 
D) a trough. 
E) a business cycle. 
A) a recession. 
B) a peak. 
C) an expansion. 
D) a trough. 
E) a business cycle.

Question 12

Use the table below to answer the following questions.
Table 4.2.1
 Data From E 
-Refer to Table 4.2.1.From the data in the table, what additional data are needed to compute net domestic income at market prices?

Accepted Answer

A) statistical discrepancy 
B) depreciation 
C) subsidies 
D) transfer payments 
E) net taxes 
A) statistical discrepancy 
B) depreciation 
C) subsidies 
D) transfer payments 
E) net taxes

Question 13

Use the information below to answer the following questions.
Fact 4.1.1
At the beginning of 2017, Peter's Perfectly Prickly Piercing Parlour had $5,000 worth of bellybutton and eyebrow rings on han computers each worth $1,000), 1 cash register worth $100, electrical equipment worth $500, and one piercing needle worth $5 the end of 2017, they had $5,000 worth of bellybutton and eyebrow rings, a new high speed computer worth $3,000 they had out the old ones), the same cash register, which was now worthless, electrical equipment worth $600, and they had upgraded the needle at a cost of $700 which was valued at $1,000.
-Refer to Fact 4.1.1.Peter's capital at the end of 2017 is

Accepted Answer

A) $9,600. 
B) $4,400. 
C) $7,600. 
D) $4,000. 
E) $7,000. 
A) $9,600. 
B) $4,400. 
C) $7,600. 
D) $4,000. 
E) $7,000.

Question 14

Use the table below to answer the following questions.
Table 4.2.3
  
-Refer to Table 4.2.3.Aggregate income equals

Accepted Answer

A) $800,000. 
B) $850,000. 
C) $1,200,000. 
D) $1,000,000. 
E) $1,300,000. 
A) $800,000. 
B) $850,000. 
C) $1,200,000. 
D) $1,000,000. 
E) $1,300,000.

Question 15

In a given year, nominal GDP increases by approximately 7 percent, but real GDP falls by 2 percent.Which one of the following explanations is most likely?

Accepted Answer

A) Prices increased by 7 percent. 
B) Prices fell by 2 percent. 
C) Prices fell by 9 percent. 
D) Prices increased by 9 percent. 
E) Output rose by 2 percent. 
A) Prices increased by 7 percent. 
B) Prices fell by 2 percent. 
C) Prices fell by 9 percent. 
D) Prices increased by 9 percent. 
E) Output rose by 2 percent.

Question 16

Use the table below to answer the following questions.
Table 4.2.1
 Data From E 
-Refer to Table 4.2.1.Gross domestic product equals

Accepted Answer

A) $1,360. 
B) $2,910. 
C) $1,150. 
D) $1,290. 
E) $1,350. 
A) $1,360. 
B) $2,910. 
C) $1,150. 
D) $1,290. 
E) $1,350.

Question 17

Table 4.4.1
-Refer to Table 4.4.1.At 2018 prices, the value of production from 2017 to 2018 has increased by

Accepted Answer

A) 144.0 percent. 
B) 145.5 percent. 
C) 56 percent. 
D) 1.455 percent. 
E) 1.44 percent. 
A) 144.0 percent. 
B) 145.5 percent. 
C) 56 percent. 
D) 1.455 percent. 
E) 1.44 percent.

Question 18

When we use PPP we can make valid international comparisons of real GDP because we

Accepted Answer

A) use data provided by the IMF. 
B) calculate the value of goods and services produced in two countries using the same quantities. 
C) use the price data provided by the two countries but not the quantities. 
D) calculate the value of goods and services produced in two countries using the same prices. 
E) use official government data. 
A) use data provided by the IMF. 
B) calculate the value of goods and services produced in two countries using the same quantities. 
C) use the price data provided by the two countries but not the quantities. 
D) calculate the value of goods and services produced in two countries using the same prices. 
E) use official government data.

Question 19

Stock and bond sales are not included in GDP because they

Accepted Answer

A) can be sold online. 
B) are not sold in the country in which they are produced. 
C) are not goods and services. 
D) have volatile prices. 
E) represent corporate production. 
A) can be sold online. 
B) are not sold in the country in which they are produced. 
C) are not goods and services. 
D) have volatile prices. 
E) represent corporate production.

Question 20

Of the following items, which one would be considered as investment in the National Income and Expenditure Accounts?

Accepted Answer

A) The purchase of a 100- year- old house that was put on the protected historic sites list. 
B) Your purchase of a new car. 
C) The purchase of 100 shares of Bell Canada stock on the Toronto Stock Exchange. 
D) The purchase of a new van by a potter who packs it with his wares and travels to art shows on weekends. 
E) The purchase of a Canadian government bond. 
A) The purchase of a 100- year- old house that was put on the protected historic sites list. 
B) Your purchase of a new car. 
C) The purchase of 100 shares of Bell Canada stock on the Toronto Stock Exchange. 
D) The purchase of a new van by a potter who packs it with his wares and travels to art shows on weekends. 
E) The purchase of a Canadian government bond.

To derive net domestic income at market prices from GDP income approach),

Table 4.4.1 -Refer to Table 4.4.1.At 2017 prices, the value of production from 2017 to 2018 has increased by

Use the table below to answer the following questions. Table 4.2.4 -Refer to Table 4.2.4.Net investment is equal to

The sum of wages, salaries, and supplementary labour income, and other factor incomes is

Which one of the following would not be counted as part of this year's GDP?

Real GDP equals

In the circular flow model,

Use the table below to answer the following questions. Table 4.2.4 -Which approach to measuring GDP is being used when Statistics Canada sums wages, salaries and supplementary labour income, and other factor incomes?

The purchasers in the goods markets are

All of the following statements are true except

Use the figure below to answer the following questions. Figure 4.3.1 -Refer to Figure 4.3.1.In the figure, the distance between points S and T represents

Use the table below to answer the following questions. Table 4.2.1 Data From Eastland -Refer to Table 4.2.1.From the data in the table, what additional data are needed to compute net domestic income at market prices?

Use the table below to answer the following questions. Table 4.2.3 -Refer to Table 4.2.3.Aggregate income equals

In a given year, nominal GDP increases by approximately 7 percent, but real GDP falls by 2 percent.Which one of the following explanations is most likely?

Use the table below to answer the following questions. Table 4.2.1 Data From Eastland -Refer to Table 4.2.1.Gross domestic product equals

Table 4.4.1 -Refer to Table 4.4.1.At 2018 prices, the value of production from 2017 to 2018 has increased by

When we use PPP we can make valid international comparisons of real GDP because we

Stock and bond sales are not included in GDP because they

Of the following items, which one would be considered as investment in the National Income and Expenditure Accounts?

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 4: Measuring Gdp and Economic Growth

To derive net domestic income at market prices from GDP income approach),

Table 4.4.1 -Refer to Table 4.4.1.At 2017 prices, the value of production from 2017 to 2018 has increased by

Use the table below to answer the following questions. Table 4.2.4 -Refer to Table 4.2.4.Net investment is equal to

The sum of wages, salaries, and supplementary labour income, and other factor incomes is

Which one of the following would not be counted as part of this year's GDP?

Real GDP equals

In the circular flow model,

Use the table below to answer the following questions. Table 4.2.4 -Which approach to measuring GDP is being used when Statistics Canada sums wages, salaries and supplementary labour income, and other factor incomes?

The purchasers in the goods markets are

All of the following statements are true except

Use the figure below to answer the following questions. Figure 4.3.1 -Refer to Figure 4.3.1.In the figure, the distance between points S and T represents

Use the table below to answer the following questions. Table 4.2.1 Data From Eastland -Refer to Table 4.2.1.From the data in the table, what additional data are needed to compute net domestic income at market prices?

Use the table below to answer the following questions. Table 4.2.3 -Refer to Table 4.2.3.Aggregate income equals

In a given year, nominal GDP increases by approximately 7 percent, but real GDP falls by 2 percent.Which one of the following explanations is most likely?

Use the table below to answer the following questions. Table 4.2.1 Data From Eastland -Refer to Table 4.2.1.Gross domestic product equals

Table 4.4.1 -Refer to Table 4.4.1.At 2018 prices, the value of production from 2017 to 2018 has increased by

When we use PPP we can make valid international comparisons of real GDP because we

Stock and bond sales are not included in GDP because they

Of the following items, which one would be considered as investment in the National Income and Expenditure Accounts?

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters