Question 1

Which of the following is NOT a payment made to households in exchange for the use of factors of production?

Accepted Answer

A) rent 
B) wages 
C) taxes 
D) interest 
A) rent 
B) wages 
C) taxes 
D) interest

Question 2

Which of the following are NOT included in the investment category under the expenditure approach to GDP accounting?

Accepted Answer

A) additions to inventory 
B) factory buildings 
C) newly constructed houses 
D) stocks and bonds 
A) additions to inventory 
B) factory buildings 
C) newly constructed houses 
D) stocks and bonds

Question 3

For the economy as a whole,what is the relationship between income and expenditures?

Accepted Answer

A) Expenditures exceed income because of taxes. 
B) Expenditures exceed income because of the government budget deficit. 
C) Income exceeds expenditures because of saving. 
D) Income equals expenditures. 
A) Expenditures exceed income because of taxes. 
B) Expenditures exceed income because of the government budget deficit. 
C) Income exceeds expenditures because of saving. 
D) Income equals expenditures.

Question 4

Under the expenditure approach to GDP accounting,what category includes changes in inventories?

Accepted Answer

A) consumption 
B) government purchases 
C) net exports 
D) investment 
A) consumption 
B) government purchases 
C) net exports 
D) investment

Question 5

What is estimated size of the underground economy?

Accepted Answer

A) 2 to 5 percent of GDP 
B) 5 to 15 percent of GDP 
C) 7 to 10 percent of GDP 
D) 45 to 60 percent of GDP 
A) 2 to 5 percent of GDP 
B) 5 to 15 percent of GDP 
C) 7 to 10 percent of GDP 
D) 45 to 60 percent of GDP

Question 6

Which of the following is included in the investment component of GDP?

Accepted Answer

A) the sale of shares of Canadian Tire stock 
B) the purchase of a refrigerator by a household 
C) the construction of a new steel mill 
D) the funds put into a registered retirement savings accounts 
A) the sale of shares of Canadian Tire stock 
B) the purchase of a refrigerator by a household 
C) the construction of a new steel mill 
D) the funds put into a registered retirement savings accounts

Question 7

What is included in the calculation of GDP?

Accepted Answer

A) only goods purchased by consumers in a given year 
B) intermediate products but not final products 
C) final products but not intermediate products 
D) manufactured goods but not services 
A) only goods purchased by consumers in a given year 
B) intermediate products but not final products 
C) final products but not intermediate products 
D) manufactured goods but not services

Question 8

Which of the following is NOT part of GDP?

Accepted Answer

A) the value of a new home built and purchased during the year 
B) the value of shares of Royal Bank of Canada stock bought and sold during the year 
C) the value of long-distance telephone services rendered during the year 
D) the value of new furniture produced during the year 
A) the value of a new home built and purchased during the year 
B) the value of shares of Royal Bank of Canada stock bought and sold during the year 
C) the value of long-distance telephone services rendered during the year 
D) the value of new furniture produced during the year

Question 9

What type of factor payment accounted for approximately half of Canadian GDP by type of income in 2010?

Accepted Answer

A) investment income 
B) interest income 
C) corporate profits before taxes 
D) wages and salaries 
A) investment income 
B) interest income 
C) corporate profits before taxes 
D) wages and salaries

Question 10

What is subtracted from GDP to determine net domestic income?

Accepted Answer

A) transfer payments and net exports 
B) inventory accumulation and depreciation 
C) net indirect taxes and depreciation 
D) net exports and net indirect taxes 
A) transfer payments and net exports 
B) inventory accumulation and depreciation 
C) net indirect taxes and depreciation 
D) net exports and net indirect taxes

Question 11

Included in the investment category of GDP under the expenditure approach is the purchase of parcels of land for the purposes of realizing capital gains when real estate values rise.

Accepted Answer

A) True 
 B)False

Question 12

What does a negative amount of net exports in the GDP expenditures accounting mean?

Accepted Answer

A) Exports are less than imports. 
B) Imports are less than exports. 
C) Net exports have declined from the previous period. 
D) The sum of this period's exports and imports has declined from the previous period. 
A) Exports are less than imports. 
B) Imports are less than exports. 
C) Net exports have declined from the previous period. 
D) The sum of this period's exports and imports has declined from the previous period.

Question 13

Maureen was once a stay-at-home mom and made all her kids' clothing.Now she has a job as a teacher earning $50 000 per year and she spends $10 000 of that buying clothing that she used to make.As a result of this,by how much did GDP and output increase per year?

Accepted Answer

A) GDP and output both increased by $50 000. 
B) GDP and output both increased by $60 000. 
C) GDP increased by$50 000 and output rose by $40 000. 
D) GDP increased by $60 000 and output rose by $50 000. 
A) GDP and output both increased by $50 000. 
B) GDP and output both increased by $60 000. 
C) GDP increased by$50 000 and output rose by $40 000. 
D) GDP increased by $60 000 and output rose by $50 000.

Question 14

What likely occurred during 2012 if nominal GDP did not change and real GDP decreased,relative to the year 2011?

Accepted Answer

A) Total production of goods and services in the economy did not change in 2012. 
B) The economy experienced deflation during 2012. 
C) The price level did not change during 2012. 
D) Total production of goods and services in the economy declined during 2012. 
A) Total production of goods and services in the economy did not change in 2012. 
B) The economy experienced deflation during 2012. 
C) The price level did not change during 2012. 
D) Total production of goods and services in the economy declined during 2012.

Question 15

Which of the following is an example of an intermediate good?

Accepted Answer

A) a pair of jeans sold by a clothing retailer 
B) cloth sold to a suit manufacturer 
C) a used Ford Mustang sold from one neighbour to another 
D) a share of Walmart stock 
A) a pair of jeans sold by a clothing retailer 
B) cloth sold to a suit manufacturer 
C) a used Ford Mustang sold from one neighbour to another 
D) a share of Walmart stock

Question 16

Inflation that causes an increase in the prices of goods and services will,other things being equal,tend to decrease nominal GDP.

Accepted Answer

A) True 
 B)False

Question 17

The formula for calculating real GDP = (price index/nominal GDP)x 100.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following are most likely to be classified by economists as consumer durable goods?

Accepted Answer

A) stocks and bonds 
B) automobiles, furniture, and CD players 
C) drugs, toys, magazines, and books 
D) food and clothing 
A) stocks and bonds 
B) automobiles, furniture, and CD players 
C) drugs, toys, magazines, and books 
D) food and clothing

Question 19

What expenditure category of GDP would include the purchase of a new scanner by a computer graphics business?

Accepted Answer

A) investment 
B) government purchases 
C) net exports 
D) consumption 
A) investment 
B) government purchases 
C) net exports 
D) consumption

Question 20

What does the Consumer Price Index (CPI)measure changes in prices of?

Accepted Answer

A) certain goods and services purchased for consumption purposes 
B) goods produced abroad but sold in Canada 
C) all the goods and services included in the gross domestic product 
D) certain important commodities, including wheat, crude oil, and tin 
A) certain goods and services purchased for consumption purposes 
B) goods produced abroad but sold in Canada 
C) all the goods and services included in the gross domestic product 
D) certain important commodities, including wheat, crude oil, and tin

Which of the following is NOT a payment made to households in exchange for the use of factors of production?

Which of the following are NOT included in the investment category under the expenditure approach to GDP accounting?

For the economy as a whole,what is the relationship between income and expenditures?

Under the expenditure approach to GDP accounting,what category includes changes in inventories?

What is estimated size of the underground economy?

Which of the following is included in the investment component of GDP?

What is included in the calculation of GDP?

Which of the following is NOT part of GDP?

What type of factor payment accounted for approximately half of Canadian GDP by type of income in 2010?

What is subtracted from GDP to determine net domestic income?

Included in the investment category of GDP under the expenditure approach is the purchase of parcels of land for the purposes of realizing capital gains when real estate values rise.

What does a negative amount of net exports in the GDP expenditures accounting mean?

Maureen was once a stay-at-home mom and made all her kids' clothing.Now she has a job as a teacher earning $50 000 per year and she spends $10 000 of that buying clothing that she used to make.As a result of this,by how much did GDP and output increase per year?

What likely occurred during 2012 if nominal GDP did not change and real GDP decreased,relative to the year 2011?

Which of the following is an example of an intermediate good?

Inflation that causes an increase in the prices of goods and services will,other things being equal,tend to decrease nominal GDP.

The formula for calculating real GDP = (price index/nominal GDP)x 100.

Which of the following are most likely to be classified by economists as consumer durable goods?

What expenditure category of GDP would include the purchase of a new scanner by a computer graphics business?

What does the Consumer Price Index (CPI)measure changes in prices of?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Economic Growth in the Global Economy

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters

Exam 6: Measuring Economic Performance

Which of the following is NOT a payment made to households in exchange for the use of factors of production?

Which of the following are NOT included in the investment category under the expenditure approach to GDP accounting?

For the economy as a whole,what is the relationship between income and expenditures?

Under the expenditure approach to GDP accounting,what category includes changes in inventories?

What is estimated size of the underground economy?

Which of the following is included in the investment component of GDP?

What is included in the calculation of GDP?

Which of the following is NOT part of GDP?

What type of factor payment accounted for approximately half of Canadian GDP by type of income in 2010?

What is subtracted from GDP to determine net domestic income?

Included in the investment category of GDP under the expenditure approach is the purchase of parcels of land for the purposes of realizing capital gains when real estate values rise.

What does a negative amount of net exports in the GDP expenditures accounting mean?

Maureen was once a stay-at-home mom and made all her kids' clothing.Now she has a job as a teacher earning $50 000 per year and she spends $10 000 of that buying clothing that she used to make.As a result of this,by how much did GDP and output increase per year?

What likely occurred during 2012 if nominal GDP did not change and real GDP decreased,relative to the year 2011?

Which of the following is an example of an intermediate good?

Inflation that causes an increase in the prices of goods and services will,other things being equal,tend to decrease nominal GDP.

The formula for calculating real GDP = (price index/nominal GDP)x 100.

Which of the following are most likely to be classified by economists as consumer durable goods?

What expenditure category of GDP would include the purchase of a new scanner by a computer graphics business?

What does the Consumer Price Index (CPI)measure changes in prices of?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Economic Growth in the Global Economy

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters