Question 1

The most accurate way to compare standards of living throughout the world is to look at

Accepted Answer

A) total GDP. 
B) GNP. 
C) purchasing power parity. 
D) foreign exchange rates. 
A) total GDP. 
B) GNP. 
C) purchasing power parity. 
D) foreign exchange rates.

Question 2

Net domestic product (NDP)is

Accepted Answer

A) GDP minus depreciation. 
B) GDP minus private investment. 
C) GDP minus the foreign sector. 
D) GDP minus government transfers. 
A) GDP minus depreciation. 
B) GDP minus private investment. 
C) GDP minus the foreign sector. 
D) GDP minus government transfers.

Question 3

Which one of the following is a durable consumer good?

Accepted Answer

A) furniture 
B) gasoline 
C) food 
D) office supplies that will be used up this year 
A) furniture 
B) gasoline 
C) food 
D) office supplies that will be used up this year

Question 4

Calculating GDP by the expenditure approach requires summing the value of

Accepted Answer

A) all income paid to individuals. 
B) all transactions in the economy. 
C) all final goods and services produced in the economy. 
D) all expenditures by individuals. 
A) all income paid to individuals. 
B) all transactions in the economy. 
C) all final goods and services produced in the economy. 
D) all expenditures by individuals.

Question 5

We always hear about individual (and contractors)working "under the table",does this income really just disappear from the national income discussion? Explain fully.

Accepted Answer

Begin with a discussion of the undergrou

Question 6

Describe in detail the "other" components of GDP and National Income Accounting.

Accepted Answer

Essentially replicat

Question 7

The value of GDP,when estimated by the income approach,is the sum of

Accepted Answer

A) consumption expenditures,investment spending,and profits. 
B) consumption,wages,rents,interest,and profits. 
C) income earned by all factors of production. 
D) depreciation,indirect business taxes,and income earned by the factors of production. 
A) consumption expenditures,investment spending,and profits. 
B) consumption,wages,rents,interest,and profits. 
C) income earned by all factors of production. 
D) depreciation,indirect business taxes,and income earned by the factors of production.

Question 8

National income is $500,corporate taxes are $20,social security contributions are $60,retained earnings are $10,personal taxes are $100,and transfer payments are $80.Disposable income is

Accepted Answer

A) $510. 
B) $450. 
C) $410. 
D) $390. 
A) $510. 
B) $450. 
C) $410. 
D) $390.

Question 9

The annual cost of producing the entire output of final goods and services in an economy is

Accepted Answer

A) equal to the quantity of total output produced. 
B) greater than the total income of households in the economy. 
C) equal to total income. 
D) equal to the total income of households in the economy only if profits are zero. 
A) equal to the quantity of total output produced. 
B) greater than the total income of households in the economy. 
C) equal to total income. 
D) equal to the total income of households in the economy only if profits are zero.

Question 10

If C = consumption,G = government expenditures,and I = investment expenditures,the mathematical representation of GDP using the expenditure approach is

Accepted Answer

A) GDP = C + I + G + Transfers. 
B) GDP = C + I + G + Imports. 
C) GDP = C + Imports. 
D) GDP = C + I + G + Net exports. 
A) GDP = C + I + G + Transfers. 
B) GDP = C + I + G + Imports. 
C) GDP = C + Imports. 
D) GDP = C + I + G + Net exports.

Question 11

Which of the following is a component of net domestic product,but NOT of national income?

Accepted Answer

A) capital consumption allowance 
B) indirect business taxes 
C) corporate taxes 
D) personal taxes 
A) capital consumption allowance 
B) indirect business taxes 
C) corporate taxes 
D) personal taxes

Question 12

From the base year (1990)to the next year (1991)the price index increases from 100 to 102.5.If nominal GDP is $2,800 in 1991,then the real GDP in 1991 is

Accepted Answer

A) $2,800 multiplied by 102.5 and divided by 100. 
B) $2,800. 
C) $2,800 divided by 102.5 and multiplied by 100. 
D) $2,800 divided by 102.5. 
A) $2,800 multiplied by 102.5 and divided by 100. 
B) $2,800. 
C) $2,800 divided by 102.5 and multiplied by 100. 
D) $2,800 divided by 102.5.

Question 13

If GDP and other national income accounts are expressed in nominal values,then they

Accepted Answer

A) are measured in real values. 
B) are measured in market prices at which goods actually sold. 
C) are measured in constant prices instead of actual market prices. 
D) are readily comparable to GDP figures for other years. 
A) are measured in real values. 
B) are measured in market prices at which goods actually sold. 
C) are measured in constant prices instead of actual market prices. 
D) are readily comparable to GDP figures for other years.

Question 14

Per capita GDP is

Accepted Answer

A) GDP divided by the population. 
B) GDP divided by a price index. 
C) GDP minus depreciation. 
D) population divided by GDP. 
A) GDP divided by the population. 
B) GDP divided by a price index. 
C) GDP minus depreciation. 
D) population divided by GDP.

Question 15

An increase in investment spending that increases GDP occurs when

Accepted Answer

A) a family purchases a new car. 
B) a business buys a new computer. 
C) inventories of new cars are drawn down on the lots of car dealers. 
D) the government builds a new office building. 
A) a family purchases a new car. 
B) a business buys a new computer. 
C) inventories of new cars are drawn down on the lots of car dealers. 
D) the government builds a new office building.

Question 16

An example of an increase in gross private domestic investment spending that also increases GDP is when

Accepted Answer

A) a family sells its home because of a transfer. 
B) a farmer buys a used tractor. 
C) inventories of new cars accumulate on the lots of car dealers. 
D) government increases spending on infrastructure. 
A) a family sells its home because of a transfer. 
B) a farmer buys a used tractor. 
C) inventories of new cars accumulate on the lots of car dealers. 
D) government increases spending on infrastructure.

Question 17

In calculating wages for gross domestic income

Accepted Answer

A) social security taxes paid by the employee are also included,but not the portion of the tax paid by the employer. 
B) social security taxes paid by the employer are also included,but not the portion of the tax paid by the employee. 
C) social security taxes paid by the employee are subtracted from the social security taxes paid by the employer and the net figure is included. 
D) social security taxes paid by both the employer and the employee are included. 
A) social security taxes paid by the employee are also included,but not the portion of the tax paid by the employer. 
B) social security taxes paid by the employer are also included,but not the portion of the tax paid by the employee. 
C) social security taxes paid by the employee are subtracted from the social security taxes paid by the employer and the net figure is included. 
D) social security taxes paid by both the employer and the employee are included.

Question 18

If imports are $100 million less than exports,government spending is $500 million,consumer expenditures are $1 billion,and investment spending is $500 million,then GDP is

Accepted Answer

A) $1 billion. 
B) $1.9 billion. 
C) $2 billion. 
D) $2.1 billion. 
A) $1 billion. 
B) $1.9 billion. 
C) $2 billion. 
D) $2.1 billion.

Question 19

Disposable personal income is found by taking

Accepted Answer

A) personal income taxes minus personal income. 
B) personal income minus personal income taxes. 
C) personal income taxes plus personal income. 
D) personal income times personal income taxes. 
A) personal income taxes minus personal income. 
B) personal income minus personal income taxes. 
C) personal income taxes plus personal income. 
D) personal income times personal income taxes.

Question 20

When the total quantity of unsold new Chevrolets increases from 50,000 to 75,000

Accepted Answer

A) the economy experiences a period of disinvestment. 
B) the economy's level of competition increases. 
C) there is an increase in the rate of aggregate output. 
D) the producer undergoes an inventory investment. 
A) the economy experiences a period of disinvestment. 
B) the economy's level of competition increases. 
C) there is an increase in the rate of aggregate output. 
D) the producer undergoes an inventory investment.

The most accurate way to compare standards of living throughout the world is to look at

Net domestic product (NDP)is

Which one of the following is a durable consumer good?

Calculating GDP by the expenditure approach requires summing the value of

We always hear about individual (and contractors)working "under the table",does this income really just disappear from the national income discussion? Explain fully.

Describe in detail the "other" components of GDP and National Income Accounting.

The value of GDP,when estimated by the income approach,is the sum of

National income is $500,corporate taxes are $20,social security contributions are $60,retained earnings are $10,personal taxes are $100,and transfer payments are $80.Disposable income is

The annual cost of producing the entire output of final goods and services in an economy is

If C = consumption,G = government expenditures,and I = investment expenditures,the mathematical representation of GDP using the expenditure approach is

Which of the following is a component of net domestic product,but NOT of national income?

From the base year (1990)to the next year (1991)the price index increases from 100 to 102.5.If nominal GDP is $2,800 in 1991,then the real GDP in 1991 is

If GDP and other national income accounts are expressed in nominal values,then they

Per capita GDP is

An increase in investment spending that increases GDP occurs when

An example of an increase in gross private domestic investment spending that also increases GDP is when

In calculating wages for gross domestic income

If imports are $100 million less than exports,government spending is $500 million,consumer expenditures are $1 billion,and investment spending is $500 million,then GDP is

Disposable personal income is found by taking

When the total quantity of unsold new Chevrolets increases from 50,000 to 75,000

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 5: Measuring the Economys Performance

The most accurate way to compare standards of living throughout the world is to look at

Net domestic product (NDP)is

Which one of the following is a durable consumer good?

Calculating GDP by the expenditure approach requires summing the value of

We always hear about individual (and contractors)working "under the table",does this income really just disappear from the national income discussion? Explain fully.

Describe in detail the "other" components of GDP and National Income Accounting.

The value of GDP,when estimated by the income approach,is the sum of

National income is $500,corporate taxes are $20,social security contributions are $60,retained earnings are $10,personal taxes are $100,and transfer payments are $80.Disposable income is

The annual cost of producing the entire output of final goods and services in an economy is

If C = consumption,G = government expenditures,and I = investment expenditures,the mathematical representation of GDP using the expenditure approach is

Which of the following is a component of net domestic product,but NOT of national income?

From the base year (1990)to the next year (1991)the price index increases from 100 to 102.5.If nominal GDP is $2,800 in 1991,then the real GDP in 1991 is

If GDP and other national income accounts are expressed in nominal values,then they

Per capita GDP is

An increase in investment spending that increases GDP occurs when

An example of an increase in gross private domestic investment spending that also increases GDP is when

In calculating wages for gross domestic income

If imports are $100 million less than exports,government spending is $500 million,consumer expenditures are $1 billion,and investment spending is $500 million,then GDP is

Disposable personal income is found by taking

When the total quantity of unsold new Chevrolets increases from 50,000 to 75,000

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters