Question 1

Gross domestic product is the value of all final goods and services produced within a country during a given period of time.

Accepted Answer

A) True 
 B)False

Question 2

How do pollution and crime affect GDP?

Accepted Answer

Pollution and crime are entire

Question 3

What is the difference between CPI and GDP tracking?

Accepted Answer

A) CPI tracks price changes in all consumer goods and services, while the GDP deflator tracks price changes in all capital goods and services. 
B) CPI tracks price changes in all consumer goods and services, while the GDP deflator tracks price changes in all intermediate goods and services. 
C) CPI tracks price changes in a basket of goods and services, while the GDP deflator tracks price changes in all goods and services. 
D) CPI tracks price changes in a basket of goods and services, while the GDP deflator tracks price changes in all final goods and services. 
A) CPI tracks price changes in all consumer goods and services, while the GDP deflator tracks price changes in all capital goods and services. 
B) CPI tracks price changes in all consumer goods and services, while the GDP deflator tracks price changes in all intermediate goods and services. 
C) CPI tracks price changes in a basket of goods and services, while the GDP deflator tracks price changes in all goods and services. 
D) CPI tracks price changes in a basket of goods and services, while the GDP deflator tracks price changes in all final goods and services.

Question 4

Tony Roma's in downtown Vancouver buys $10 000 worth of beef ribs,$25 000 worth of pork ribs,and $8000 worth of napkins each month.Are these purchases included in the calculation of gross domestic product?

Accepted Answer

Economists calculate GDP as the value of

Question 5

The expenditure approach to measuring GDP involves adding up the purchases of final goods and services by market participants.

Accepted Answer

A) True 
 B)False

Question 6

What does personal income measure?

Accepted Answer

A) aggregate income minus the statistical discrepancy 
B) GDP minus depreciation 
C) the income earned by owners of factors of production used in making final goods and services 
D) the total amount of income received by households before taxes 
A) aggregate income minus the statistical discrepancy 
B) GDP minus depreciation 
C) the income earned by owners of factors of production used in making final goods and services 
D) the total amount of income received by households before taxes

Question 7

What is the CPI a measure of?

Accepted Answer

A) the overall price of stocks on the Toronto Stock Exchange 
B) the overall price of goods and services bought by a typical consumer 
C) the overall price of inputs purchased by a typical producer 
D) the overall price of goods and services produced in the economy 
A) the overall price of stocks on the Toronto Stock Exchange 
B) the overall price of goods and services bought by a typical consumer 
C) the overall price of inputs purchased by a typical producer 
D) the overall price of goods and services produced in the economy

Question 8

What problems would result from the measurement of the sales of all goods and services produced?

Accepted Answer

Measuring the sales of all goods and ser

Question 9

The expenditure category of GDP that fluctuates the most over time is investment.

Accepted Answer

A) True 
 B)False

Question 10

Capital,entrepreneurship,land,and labour are needed to produce goods and services.What are the respective payments for each of these factors of production?

Accepted Answer

A) profits, interest, rent, and wages and salaries 
B) profits, rent, wages and salaries, and interest 
C) interest, profits, wages and salaries, and rent 
D) interest, profits, rent, and wages and salaries 
A) profits, interest, rent, and wages and salaries 
B) profits, rent, wages and salaries, and interest 
C) interest, profits, wages and salaries, and rent 
D) interest, profits, rent, and wages and salaries

Question 11

When you buy a pickup truck to use at home,it is included in the investment component of GDP.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT counted as a part of GDP?

Accepted Answer

A) the purchase of 100 shares of Apple stock by your grandmother 
B) the purchase of a loaf of bread by a consumer 
C) the unsold additions to inventory at a furniture store 
D) the purchase of a snowplough by the city of Winnipeg 
A) the purchase of 100 shares of Apple stock by your grandmother 
B) the purchase of a loaf of bread by a consumer 
C) the unsold additions to inventory at a furniture store 
D) the purchase of a snowplough by the city of Winnipeg

Question 13

Why do most people that are employed full time NOT look for part-time jobs?

Accepted Answer

A) The economy would be operating at more than full employment 
B) The opportunity cost of leisure is too high. 
C) There are not enough jobs for full time workers to have part-time jobs. 
D) People with full-time jobs already satisfy their basic needs. 
A) The economy would be operating at more than full employment 
B) The opportunity cost of leisure is too high. 
C) There are not enough jobs for full time workers to have part-time jobs. 
D) People with full-time jobs already satisfy their basic needs.

Question 14

Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.

Accepted Answer

GDP = C +

Question 15

What does net domestic income at factor cost measure?

Accepted Answer

A) aggregate income minus the statistical discrepancy 
B) GDP minus depreciation 
C) the income earned by owners of factors of production used in making final goods and services 
D) the income received by persons after taxes 
A) aggregate income minus the statistical discrepancy 
B) GDP minus depreciation 
C) the income earned by owners of factors of production used in making final goods and services 
D) the income received by persons after taxes

Question 16

A price index creates a measure of how many dollars it would take to maintain a constant purchasing power over time.

Accepted Answer

A) True 
 B)False

Question 17

Under the expenditure approach to GDP accounting,government purchases of goods and services include welfare payments.

Accepted Answer

A) True 
 B)False

Question 18

What does GDP NOT directly include?

Accepted Answer

A) the value of services rendered during a period 
B) the value of intermediate goods sold during a period 
C) the value of goods produced domestically and sold abroad 
D) the value of final goods and services produced, but not sold, during a period 
A) the value of services rendered during a period 
B) the value of intermediate goods sold during a period 
C) the value of goods produced domestically and sold abroad 
D) the value of final goods and services produced, but not sold, during a period

Question 19

If Canada imported $1.5 billion worth of goods and services and sold $2.9 billion worth of goods and services outside its borders,what would its net exports equal?

Accepted Answer

A) $-4.4 billion 
B) $-1.4 billion 
C) $1.4 billion 
D) $4.4 billion 
A) $-4.4 billion 
B) $-1.4 billion 
C) $1.4 billion 
D) $4.4 billion

Question 20

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

Accepted Answer

A) newly constructed houses 
B) additions to inventory 
C) stocks issued by Canadian corporations 
D) machines and tools 
A) newly constructed houses 
B) additions to inventory 
C) stocks issued by Canadian corporations 
D) machines and tools

Gross domestic product is the value of all final goods and services produced within a country during a given period of time.

How do pollution and crime affect GDP?

What is the difference between CPI and GDP tracking?

Tony Roma's in downtown Vancouver buys $10 000 worth of beef ribs,$25 000 worth of pork ribs,and $8000 worth of napkins each month.Are these purchases included in the calculation of gross domestic product?

The expenditure approach to measuring GDP involves adding up the purchases of final goods and services by market participants.

What does personal income measure?

What is the CPI a measure of?

What problems would result from the measurement of the sales of all goods and services produced?

The expenditure category of GDP that fluctuates the most over time is investment.

Capital,entrepreneurship,land,and labour are needed to produce goods and services.What are the respective payments for each of these factors of production?

When you buy a pickup truck to use at home,it is included in the investment component of GDP.

Which of the following is NOT counted as a part of GDP?

Why do most people that are employed full time NOT look for part-time jobs?

Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.

What does net domestic income at factor cost measure?

A price index creates a measure of how many dollars it would take to maintain a constant purchasing power over time.

Under the expenditure approach to GDP accounting,government purchases of goods and services include welfare payments.

What does GDP NOT directly include?

If Canada imported $1.5 billion worth of goods and services and sold $2.9 billion worth of goods and services outside its borders,what would its net exports equal?

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

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

Gross domestic product is the value of all final goods and services produced within a country during a given period of time.

How do pollution and crime affect GDP?

What is the difference between CPI and GDP tracking?

Tony Roma's in downtown Vancouver buys $10 000 worth of beef ribs,$25 000 worth of pork ribs,and $8000 worth of napkins each month.Are these purchases included in the calculation of gross domestic product?

The expenditure approach to measuring GDP involves adding up the purchases of final goods and services by market participants.

What does personal income measure?

What is the CPI a measure of?

What problems would result from the measurement of the sales of all goods and services produced?

The expenditure category of GDP that fluctuates the most over time is investment.

Capital,entrepreneurship,land,and labour are needed to produce goods and services.What are the respective payments for each of these factors of production?

When you buy a pickup truck to use at home,it is included in the investment component of GDP.

Which of the following is NOT counted as a part of GDP?

Why do most people that are employed full time NOT look for part-time jobs?

Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.

What does net domestic income at factor cost measure?

A price index creates a measure of how many dollars it would take to maintain a constant purchasing power over time.

Under the expenditure approach to GDP accounting,government purchases of goods and services include welfare payments.

What does GDP NOT directly include?

If Canada imported $1.5 billion worth of goods and services and sold $2.9 billion worth of goods and services outside its borders,what would its net exports equal?

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

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