Question 1

How is GDP defined?

Accepted Answer

A) as the national income after taxes 
B) as the total value of all final goods and services plus intermediate goods and services produced domestically within a given period 
C) as the total value of all consumer expenditures within a given period 
D) as the value of all final goods and services produced domestically within a given period 
A) as the national income after taxes 
B) as the total value of all final goods and services plus intermediate goods and services produced domestically within a given period 
C) as the total value of all consumer expenditures within a given period 
D) as the value of all final goods and services produced domestically within a given period

Question 2

How are net exports calculated?

Accepted Answer

A) exports plus imports minus tariffs 
B) imports minus exports 
C) exports plus imports 
D) exports minus imports 
A) exports plus imports minus tariffs 
B) imports minus exports 
C) exports plus imports 
D) exports minus imports

Question 3

GDP equals $1.1 trillion.If consumption equals $690 billion,investment equals $200 billion,and government spending equals $270 billion,what can we conclude about the value of exports and imports for the country?

Accepted Answer

A) Net exports equal zero. 
B) Exports exceed imports by $140 billion. 
C) Exports exceed imports by $40 billion. 
D) Imports exceed exports by $40 billion. 
A) Net exports equal zero. 
B) Exports exceed imports by $140 billion. 
C) Exports exceed imports by $40 billion. 
D) Imports exceed exports by $40 billion.

Question 4

Which of the following is NOT a subcategory of consumption spending?

Accepted Answer

A) consumer services 
B) consumer nondurable goods 
C) consumer investment 
D) consumer durable goods 
A) consumer services 
B) consumer nondurable goods 
C) consumer investment 
D) consumer durable goods

Question 5

Which of the following products is NOT included in current Canadian GDP?

Accepted Answer

A) a Washington State apple 
B) a Ford Mustang produced last year and sold this year 
C) an Okanagan apple 
D) a physical examination at a Newfoundland health clinic 
A) a Washington State apple 
B) a Ford Mustang produced last year and sold this year 
C) an Okanagan apple 
D) a physical examination at a Newfoundland health clinic

Question 6

There are two ways to measure Gross Domestic Product.What are they and how are they different?

Accepted Answer

There are two primary ways of calculatin

Question 7

How is nominal GDP defined?

Accepted Answer

A) the base-year market value of domestic production of intermediate goods 
B) the current-year market value of all final goods and services produced domestically during a given period 
C) the current-year market value of domestic production of intermediate goods 
D) the base-year market value of all final goods and services produced domestically during a given period 
A) the base-year market value of domestic production of intermediate goods 
B) the current-year market value of all final goods and services produced domestically during a given period 
C) the current-year market value of domestic production of intermediate goods 
D) the base-year market value of all final goods and services produced domestically during a given period

Question 8

Which of the following best describes Canadian nominal GDP?

Accepted Answer

A) It includes an estimate of the value of leisure time. 
B) It includes an estimate of underground productive activity. 
C) It has historically increased more rapidly than real GDP. 
D) It has historically increased more slowly than real GDP. 
A) It includes an estimate of the value of leisure time. 
B) It includes an estimate of underground productive activity. 
C) It has historically increased more rapidly than real GDP. 
D) It has historically increased more slowly than real GDP.

Question 9

Which of the following examples would be included in the calculated GDP?

Accepted Answer

A) A clothing manufacturer buys fabric from a textile producer. 
B) Suzanne buys a love seat and chair for $85 at the yard sale on the corner. 
C) Mr. Kelly buys a used lawn mower from his neighbour, Mr. Templeton. 
D) A local ice cream store sells $17 000 worth of cones and sundaes on July 1. 
A) A clothing manufacturer buys fabric from a textile producer. 
B) Suzanne buys a love seat and chair for $85 at the yard sale on the corner. 
C) Mr. Kelly buys a used lawn mower from his neighbour, Mr. Templeton. 
D) A local ice cream store sells $17 000 worth of cones and sundaes on July 1.

Question 10

What is the term for household income after taxes?

Accepted Answer

A) national income 
B) disposable income 
C) gross national product 
D) gross domestic product 
A) national income 
B) disposable income 
C) gross national product 
D) gross domestic product

Question 11

What is the term for GDP that has been adjusted for changes in the price level?

Accepted Answer

A) nominal GDP 
B) personal income 
C) real GDP 
D) net GDP 
A) nominal GDP 
B) personal income 
C) real GDP 
D) net GDP

Question 12

If real GDP was $800 billion in 2011 and $850 billion in 2012,what likely occurred from 2011 to 2012?

Accepted Answer

A) Total production of output increased. 
B) Either total production rose, or there was inflation, or both. 
C) The economy experienced inflation. 
D) The value of intermediate production increased. 
A) Total production of output increased. 
B) Either total production rose, or there was inflation, or both. 
C) The economy experienced inflation. 
D) The value of intermediate production increased.

Question 13

What occurred during 2012 if nominal GDP increased and real GDP decreased,relative to the year 2011?

Accepted Answer

A) The economy experienced deflation during 2012. 
B) Production of intermediate goods and services in the economy increased during 2012. 
C) The economy experienced inflation during 2012. 
D) Total production of goods and services in the economy increased during 2012. 
A) The economy experienced deflation during 2012. 
B) Production of intermediate goods and services in the economy increased during 2012. 
C) The economy experienced inflation during 2012. 
D) Total production of goods and services in the economy increased during 2012.

Question 14

What do final goods or services used to compute GDP refer to?

Accepted Answer

A) the factors of production used to produce output 
B) the sum of all wages paid to labourers 
C) the goods and services purchased by the ultimate users 
D) the value of outstanding shares of stock of manufacturing firms 
A) the factors of production used to produce output 
B) the sum of all wages paid to labourers 
C) the goods and services purchased by the ultimate users 
D) the value of outstanding shares of stock of manufacturing firms

Question 15

Which of the following statements about the Consumer Price Index is the most accurate?

Accepted Answer

A) When it increases, the average family has to spend less to maintain their standard of living. 
B) When it increases, the average family has to spend more to maintain their standard of living. 
C) It is a broader measure of inflation than is the GDP deflator. 
D) When it increases, the standard of living of the average family does not change. 
A) When it increases, the average family has to spend less to maintain their standard of living. 
B) When it increases, the average family has to spend more to maintain their standard of living. 
C) It is a broader measure of inflation than is the GDP deflator. 
D) When it increases, the standard of living of the average family does not change.

Question 16

Using the expenditure approach,calculate GDP using the following data:
   
GDP Equals ___________

Accepted Answer

GDP equals 11,175 [Consumption

Question 17

If individuals were paid for their household production,what would be the effect on GDP?

Accepted Answer

A) GDP would not change, but net domestic income would increase. 
B) GDP would not change, but net domestic income would decrease. 
C) GDP would decrease. 
D) GDP would increase. 
A) GDP would not change, but net domestic income would increase. 
B) GDP would not change, but net domestic income would decrease. 
C) GDP would decrease. 
D) GDP would increase.

Question 18

Which of the following is NOT considered part of the services category under the expenditure approach to GDP accounting?

Accepted Answer

A) commercial airline transportation 
B) sporting events 
C) haircuts 
D) privately owned jets 
A) commercial airline transportation 
B) sporting events 
C) haircuts 
D) privately owned jets

Question 19

If nominal GDP in 2008 is greater than nominal GDP in 2006,the economy's real output of goods and services must have risen.

Accepted Answer

A) True 
 B)False

Question 20

When someone buys a good or service,his spending creates income for someone else.

Accepted Answer

A) True 
 B)False

How is GDP defined?

How are net exports calculated?

GDP equals $1.1 trillion.If consumption equals $690 billion,investment equals $200 billion,and government spending equals $270 billion,what can we conclude about the value of exports and imports for the country?

Which of the following is NOT a subcategory of consumption spending?

Which of the following products is NOT included in current Canadian GDP?

There are two ways to measure Gross Domestic Product.What are they and how are they different?

How is nominal GDP defined?

Which of the following best describes Canadian nominal GDP?

Which of the following examples would be included in the calculated GDP?

What is the term for household income after taxes?

What is the term for GDP that has been adjusted for changes in the price level?

If real GDP was $800 billion in 2011 and $850 billion in 2012,what likely occurred from 2011 to 2012?

What occurred during 2012 if nominal GDP increased and real GDP decreased,relative to the year 2011?

What do final goods or services used to compute GDP refer to?

Which of the following statements about the Consumer Price Index is the most accurate?

Using the expenditure approach,calculate GDP using the following data: GDP Equals ___________

If individuals were paid for their household production,what would be the effect on GDP?

Which of the following is NOT considered part of the services category under the expenditure approach to GDP accounting?

If nominal GDP in 2008 is greater than nominal GDP in 2006,the economy's real output of goods and services must have risen.

When someone buys a good or service,his spending creates income for someone else.

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

How is GDP defined?

How are net exports calculated?

GDP equals $1.1 trillion.If consumption equals $690 billion,investment equals $200 billion,and government spending equals $270 billion,what can we conclude about the value of exports and imports for the country?

Which of the following is NOT a subcategory of consumption spending?

Which of the following products is NOT included in current Canadian GDP?

There are two ways to measure Gross Domestic Product.What are they and how are they different?

How is nominal GDP defined?

Which of the following best describes Canadian nominal GDP?

Which of the following examples would be included in the calculated GDP?

What is the term for household income after taxes?

What is the term for GDP that has been adjusted for changes in the price level?

If real GDP was $800 billion in 2011 and $850 billion in 2012,what likely occurred from 2011 to 2012?

What occurred during 2012 if nominal GDP increased and real GDP decreased,relative to the year 2011?

What do final goods or services used to compute GDP refer to?

Which of the following statements about the Consumer Price Index is the most accurate?

Using the expenditure approach,calculate GDP using the following data: GDP Equals ___________

If individuals were paid for their household production,what would be the effect on GDP?

Which of the following is NOT considered part of the services category under the expenditure approach to GDP accounting?

If nominal GDP in 2008 is greater than nominal GDP in 2006,the economy's real output of goods and services must have risen.

When someone buys a good or service,his spending creates income for someone else.

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