Question 1

Given that pollution is a by-product of some production processes,

Accepted Answer

A) GDP accountants adjust GDP downward. 
B) GDP accountants adjust GDP upward. 
C) GDP accountants do not adjust GDP unless pollution is a serious problem. 
D) GDP tends to overstate economic well-being. 
E) GDP tends to understate economic well-being. 
A) GDP accountants adjust GDP downward. 
B) GDP accountants adjust GDP upward. 
C) GDP accountants do not adjust GDP unless pollution is a serious problem. 
D) GDP tends to overstate economic well-being. 
E) GDP tends to understate economic well-being.

Question 2

Use the table below to answer the following questions.
Table 20.2.1
Data From Eastland
  
-Refer to Table 20.2.1. From the information given in the table, the value of gross domestic product is

Accepted Answer

A) $1,280. 
B) $1,290. 
C) $1,360. 
D) $1,120. 
E) $1,100. 
A) $1,280. 
B) $1,290. 
C) $1,360. 
D) $1,120. 
E) $1,100.

Question 3

In recent history, real GDP has risen less rapidly than nominal GDP. This is because

Accepted Answer

A) the general price level fell. 
B) capital increased. 
C) the goal of zero population growth has been reached. 
D) the general price level rose. 
E) the level of population rose. 
A) the general price level fell. 
B) capital increased. 
C) the goal of zero population growth has been reached. 
D) the general price level rose. 
E) the level of population rose.

Question 4

Use the table below to answer the following questions.
Table 20.2.6
There are only two goods in this economy.
  
-Refer to Table 20.2.6. Consider the data in this table. What is current nominal GDP?

Accepted Answer

A) $189,900 
B) $192,000 
C) $95,000 
D) $93,000 
E) 75,000 loaves of bread and 18,000 computer disks 
A) $189,900 
B) $192,000 
C) $95,000 
D) $93,000 
E) 75,000 loaves of bread and 18,000 computer disks

Question 5

Which one of the following is false?

Accepted Answer

A) Y = C + I + G + M - X 
B) Y - C - I - G - X + M = 0 
C) X - M = Y - C - I - G 
D) Y + M = C + I + G + X 
E) Y = C + I + G + X - M 
A) Y = C + I + G + M - X 
B) Y - C - I - G - X + M = 0 
C) X - M = Y - C - I - G 
D) Y + M = C + I + G + X 
E) Y = C + I + G + X - M

Question 6

Use the table below to answer the following questions.
Table 20.4.1
  
-Refer to Table 20.4.1. In this table, at 2013 prices, the value of production from 2013 to 2014 has increased by

Accepted Answer

A) 77.3 percent. 
B) 54.5 percent. 
C) 10.8 percent. 
D) 91.7 percent. 
E) 56 percent. 
A) 77.3 percent. 
B) 54.5 percent. 
C) 10.8 percent. 
D) 91.7 percent. 
E) 56 percent.

Question 7

Complete the following sentence. Net exports equals

Accepted Answer

A) exports divided by imports. 
B) exports plus imports. 
C) exports minus imports. 
D) imports minus exports. 
E) foreign borrowing by residents of Canada minus domestic borrowing by nonresidents of Canada. 
A) exports divided by imports. 
B) exports plus imports. 
C) exports minus imports. 
D) imports minus exports. 
E) foreign borrowing by residents of Canada minus domestic borrowing by nonresidents of Canada.

Question 8

Which of the following statements by politicians is talking about the business cycle?

Accepted Answer

A) "Canadian unemployment is falling due to the upturn in the economy." 
B) "Crime rates increase every spring as the school year ends." 
C) "An average of 220,000 new jobs are created each year in Canada." 
D) "More capital investment will create more jobs." 
E) "Business always rises just before Christmas." 
A) "Canadian unemployment is falling due to the upturn in the economy." 
B) "Crime rates increase every spring as the school year ends." 
C) "An average of 220,000 new jobs are created each year in Canada." 
D) "More capital investment will create more jobs." 
E) "Business always rises just before Christmas."

Question 9

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

Question 10

Use the table below to answer the following questions.
Table 20.2.5
Data from Southton
  
-Refer to Table 20.2.5. From the data in the table, compute Southton's real GDP in the base year.

Accepted Answer

A) $208 
B) $197 
C) $209 
D) $226 
E) It cannot be calculated given the data. 
A) $208 
B) $197 
C) $209 
D) $226 
E) It cannot be calculated given the data.

Question 11

Which one of the following is true?

Accepted Answer

A) Y = C + I + G + M - X 
B) I + G + X = Y + I + M 
C) Y = C + S + I 
D) Y + M = C + I + G 
E) Y = C + I + G + X - M 
A) Y = C + I + G + M - X 
B) I + G + X = Y + I + M 
C) Y = C + S + I 
D) Y + M = C + I + G 
E) Y = C + I + G + X - M

Question 12

Use the table below to answer the following questions.
Table 20.2.2
  
-Refer to Table 20.2.2. Gross domestic product equals

Accepted Answer

A) $3,050. 
B) $3,150. 
C) $3,400. 
D) $5,600. 
E) $5,050. 
A) $3,050. 
B) $3,150. 
C) $3,400. 
D) $5,600. 
E) $5,050.

Question 13

Which of the following items would be included in a current measure of GDP?

Accepted Answer

A) your labour in fixing a leaky pipe under your sink 
B) the value of safety on the streets of your community 
C) a professional gardener who regularly cuts your lawn 
D) the illegal sale of a bag of marijuana 
E) your purchase of a used car 
A) your labour in fixing a leaky pipe under your sink 
B) the value of safety on the streets of your community 
C) a professional gardener who regularly cuts your lawn 
D) the illegal sale of a bag of marijuana 
E) your purchase of a used car

Exam 20: Measuring Gdp and Economic Growth

Given that pollution is a by-product of some production processes,

Use the table below to answer the following questions. Table 20.2.1 Data From Eastland -Refer to Table 20.2.1. From the information given in the table, the value of gross domestic product is

In recent history, real GDP has risen less rapidly than nominal GDP. This is because

Use the table below to answer the following questions. Table 20.2.6 There are only two goods in this economy. -Refer to Table 20.2.6. Consider the data in this table. What is current nominal GDP?

Which one of the following is false?

Use the table below to answer the following questions. Table 20.4.1 -Refer to Table 20.4.1. In this table, at 2013 prices, the value of production from 2013 to 2014 has increased by

Complete the following sentence. Net exports equals

Which of the following statements by politicians is talking about the business cycle?

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

Use the table below to answer the following questions. Table 20.2.5 Data from Southton -Refer to Table 20.2.5. From the data in the table, compute Southton's real GDP in the base year.

Which one of the following is true?

Use the table below to answer the following questions. Table 20.2.2 -Refer to Table 20.2.2. Gross domestic product equals

Which of the following items would be included in a current measure of GDP?

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