Question 1

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

Accepted Answer

A)  purchases of Canadian stocks and bonds 
B)  purchases of imported capital equipment 
C)  purchases of new cars built in the U.S. 
D)  purchases of new Canadian durable goods 
A)  purchases of Canadian stocks and bonds 
B)  purchases of imported capital equipment 
C)  purchases of new cars built in the U.S. 
D)  purchases of new Canadian durable goods

Question 2

Table 5-1  
-Refer to the Table 5-1.What is the GNP for this economy?

Accepted Answer

A)  $190 
B)  $193 
C)  $207 
D)  $215 
A)  $190 
B)  $193 
C)  $207 
D)  $215

Question 3

Table 5-2  
-Refer to the Table 5-2.What is the disposable personal income for this economy?

Accepted Answer

A)  $253 
B)  $263 
C)  $343 
D)  $353 
A)  $253 
B)  $263 
C)  $343 
D)  $353

Question 4

Table 5-2  
-Refer to the Table 5-2.What is the national income for this economy?

Accepted Answer

A)  $382 
B)  $392 
C)  $396 
D)  $398 
A)  $382 
B)  $392 
C)  $396 
D)  $398

Question 5

What prices are used to compute real GDP?

Accepted Answer

A)  current-year prices 
B)  constant prices 
C)  future-year prices 
D)  the ratio of current-year prices to constant prices 
A)  current-year prices 
B)  constant prices 
C)  future-year prices 
D)  the ratio of current-year prices to constant prices

Question 6

Table 5-5  
-Refer to Table 5-5.On the basis of the information in the table,which list below contains the correct ordering of GDP per person (from highest to lowest)?

Accepted Answer

A)  A,B,C 
B)  A,C,B 
C)  C,B,A 
D)  C,A,B 
A)  A,B,C 
B)  A,C,B 
C)  C,B,A 
D)  C,A,B

Question 7

A professional gambler moves from a province where gambling is legal to a province where gambling is illegal.What impact does this move have on Canada's GDP?

Accepted Answer

A)  It raises GDP. 
B)  It decreases GDP. 
C)  It does not change GDP because gambling is never included in GDP. 
D)  It does not change GDP because in either case his income is included. 
A)  It raises GDP. 
B)  It decreases GDP. 
C)  It does not change GDP because gambling is never included in GDP. 
D)  It does not change GDP because in either case his income is included.

Question 8

Which statement supports the idea of using GDP as a measure of well-being?

Accepted Answer

A)  Countries with higher GDP tend to have more luxury cars. 
B)  Countries with higher GDP tend to have more schools. 
C)  Countries with higher GDP tend to have more fast food restaurants. 
D)  Countries with higher GDP tend to have more food. 
A)  Countries with higher GDP tend to have more luxury cars. 
B)  Countries with higher GDP tend to have more schools. 
C)  Countries with higher GDP tend to have more fast food restaurants. 
D)  Countries with higher GDP tend to have more food.

Question 9

How is the estimated rental value of owner-occupied houses included in GDP?

Accepted Answer

A)  as consumption,for new and old houses 
B)  as investment,for new and old houses 
C)  as consumption,only for new houses 
D)  as investment,only for new houses 
A)  as consumption,for new and old houses 
B)  as investment,for new and old houses 
C)  as consumption,only for new houses 
D)  as investment,only for new houses

Question 10

Macroeconomic statistics include the inflation rate,the unemployment rate,GDP,and retail sales.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  CPP / QPP payments 
B)  purchases of foreign goods and services 
C)  purchases of newly constructed homes 
D)  goods produced but not sold during the reference period 
A)  CPP / QPP payments 
B)  purchases of foreign goods and services 
C)  purchases of newly constructed homes 
D)  goods produced but not sold during the reference period

Question 12

Which of the following is the best definition of GDP?

Accepted Answer

A)  the market value of all goods produced within a country 
B)  the market value of all final goods and services produced by the citizens of a country 
C)  the market value of all final goods and services consumed within a country over a number of years 
D)  the market value of all final goods and services produced within a country in a given period of time 
A)  the market value of all goods produced within a country 
B)  the market value of all final goods and services produced by the citizens of a country 
C)  the market value of all final goods and services consumed within a country over a number of years 
D)  the market value of all final goods and services produced within a country in a given period of time

Question 13

Which of the following is included in Canadian GDP?

Accepted Answer

A)  the difference in the price of the sale of an existing home and its original purchase price 
B)  goods produced by foreign citizens working in Canada 
C)  the estimated value of volunteer activities 
D)  goods produced by a Canadian company in France 
A)  the difference in the price of the sale of an existing home and its original purchase price 
B)  goods produced by foreign citizens working in Canada 
C)  the estimated value of volunteer activities 
D)  goods produced by a Canadian company in France

Question 14

How is GDP computed?

Accepted Answer

A)  add up the quantities of all final goods and services within a country 
B)  add up the cost of producing final goods and services within a country 
C)  use weights determined by a survey regarding how much people value different sorts of goods and services to compute GDP as a weighted average 
D)  add up the market values of all final goods and services produced within a country in a given period of time 
A)  add up the quantities of all final goods and services within a country 
B)  add up the cost of producing final goods and services within a country 
C)  use weights determined by a survey regarding how much people value different sorts of goods and services to compute GDP as a weighted average 
D)  add up the market values of all final goods and services produced within a country in a given period of time

Question 15

Table 5-3
Consider the following table for the country of Ophir:  
-Refer to the Table 5-3.What can we conclude about real GDP from this information?

Accepted Answer

A)  Real GDP was higher in 2015 than in 2014,and real GDP in 2014 was higher than in 2013. 
B)  Real GDP was higher in 2015 than in 2013,and real GDP in 2014 was higher than in 2015. 
C)  Real GDP was higher in 2013 than in 2014,and real GDP in 2014 was higher than in 2015. 
D)  Real GDP was higher in 2013 than in 2014,and real GDP in 2015 was higher than in 2014. 
A)  Real GDP was higher in 2015 than in 2014,and real GDP in 2014 was higher than in 2013. 
B)  Real GDP was higher in 2015 than in 2013,and real GDP in 2014 was higher than in 2015. 
C)  Real GDP was higher in 2013 than in 2014,and real GDP in 2014 was higher than in 2015. 
D)  Real GDP was higher in 2013 than in 2014,and real GDP in 2015 was higher than in 2014.

Question 16

A firm produces consumer goods and adds some to inventory in the third quarter.In the fourth quarter,the firm sells the goods at a retail outlet.As a result of these actions,what happens to the consumption and investment components of GDP in the fourth quarter?

Accepted Answer

A)  investment decreases,consumption does not change 
B)  investment increases,consumption decreases 
C)  investment decreases,consumption increases 
D)  investment does not change,consumption increases 
A)  investment decreases,consumption does not change 
B)  investment increases,consumption decreases 
C)  investment decreases,consumption increases 
D)  investment does not change,consumption increases

Question 17

A flour mill produces $1000 worth of flour,of which $700 goes to a bakery and $300 to consumers.A water supplier produces $300 worth of water,of which $200 goes to the bakery and $100 to consumers.The bakery produces $1500 worth of bread and sells all of it to consumers.The three companies pay wages as follows: the mill pays $400,the water supplier pays $200,and the bakery pays $200.There are no other costs of production.
a.Calculate GDP based on the value of production.
b.Calculate profits to the owners of each of the three companies (profit = revenue minus costs).
c.Calculate GDP based on income.

Accepted Answer

a.GDP is the value of all final goods an

Question 18

In 2014,how large were Canadian government purchases of goods and services?

Accepted Answer

A)  5 percent of GDP 
B)  12 percent of GDP 
C)  21 percent of GDP 
D)  26 percent of GDP 
A)  5 percent of GDP 
B)  12 percent of GDP 
C)  21 percent of GDP 
D)  26 percent of GDP

Question 19

Darla,a U.S.citizen,only works in Canada.How does the value added to production from her employment impact GDP and GNP?

Accepted Answer

A)  It raises Canadian and U.S.GDP. 
B)  It raises Canadian GDP and U.S.GNP. 
C)  It raises Canadian GNP and U.S.GDP. 
D)  It raises Canadian and U.S.GNP. 
A)  It raises Canadian and U.S.GDP. 
B)  It raises Canadian GDP and U.S.GNP. 
C)  It raises Canadian GNP and U.S.GDP. 
D)  It raises Canadian and U.S.GNP.

Question 20

Which of the following is included in Canadian GDP?

Accepted Answer

A)  Canadian exports of goods and services 
B)  CPP / QPP payments 
C)  the sale of used goods 
D)  Canadian imports of goods and services 
A)  Canadian exports of goods and services 
B)  CPP / QPP payments 
C)  the sale of used goods 
D)  Canadian imports of goods and services

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

Table 5-1 -Refer to the Table 5-1.What is the GNP for this economy?

Table 5-2 -Refer to the Table 5-2.What is the disposable personal income for this economy?

Table 5-2 -Refer to the Table 5-2.What is the national income for this economy?

What prices are used to compute real GDP?

Table 5-5 -Refer to Table 5-5.On the basis of the information in the table,which list below contains the correct ordering of GDP per person (from highest to lowest)?

A professional gambler moves from a province where gambling is legal to a province where gambling is illegal.What impact does this move have on Canada's GDP?

Which statement supports the idea of using GDP as a measure of well-being?

How is the estimated rental value of owner-occupied houses included in GDP?

Macroeconomic statistics include the inflation rate,the unemployment rate,GDP,and retail sales.

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

Which of the following is the best definition of GDP?

Which of the following is included in Canadian GDP?

How is GDP computed?

Table 5-3 Consider the following table for the country of Ophir: -Refer to the Table 5-3.What can we conclude about real GDP from this information?

A firm produces consumer goods and adds some to inventory in the third quarter.In the fourth quarter,the firm sells the goods at a retail outlet.As a result of these actions,what happens to the consumption and investment components of GDP in the fourth quarter?

In 2014,how large were Canadian government purchases of goods and services?

Darla,a U.S.citizen,only works in Canada.How does the value added to production from her employment impact GDP and GNP?

Which of the following is included in Canadian GDP?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 5: Measuring a Nations Income

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

Table 5-1 -Refer to the Table 5-1.What is the GNP for this economy?

Table 5-2 -Refer to the Table 5-2.What is the disposable personal income for this economy?

Table 5-2 -Refer to the Table 5-2.What is the national income for this economy?

What prices are used to compute real GDP?

Table 5-5 -Refer to Table 5-5.On the basis of the information in the table,which list below contains the correct ordering of GDP per person (from highest to lowest)?

A professional gambler moves from a province where gambling is legal to a province where gambling is illegal.What impact does this move have on Canada's GDP?

Which statement supports the idea of using GDP as a measure of well-being?

How is the estimated rental value of owner-occupied houses included in GDP?

Macroeconomic statistics include the inflation rate,the unemployment rate,GDP,and retail sales.

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

Which of the following is the best definition of GDP?

Which of the following is included in Canadian GDP?

How is GDP computed?

Table 5-3 Consider the following table for the country of Ophir: -Refer to the Table 5-3.What can we conclude about real GDP from this information?

A firm produces consumer goods and adds some to inventory in the third quarter.In the fourth quarter,the firm sells the goods at a retail outlet.As a result of these actions,what happens to the consumption and investment components of GDP in the fourth quarter?

In 2014,how large were Canadian government purchases of goods and services?

Darla,a U.S.citizen,only works in Canada.How does the value added to production from her employment impact GDP and GNP?

Which of the following is included in Canadian GDP?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters