Question 1

An indirect business tax

Accepted Answer

A) is levied on the corporate profits. 
B) is excluded from gross domestic income. 
C) includes all business taxes except taxes on corporate profits. 
D) lowers the market price of goods. 
A) is levied on the corporate profits. 
B) is excluded from gross domestic income. 
C) includes all business taxes except taxes on corporate profits. 
D) lowers the market price of goods.

Question 2

The two principle methods of measuring GDP are

Accepted Answer

A) the flow approach and the stock approach. 
B) the expenditures approach and the income approach. 
C) the intermediate approach and the value-added approach. 
D) the domestic approach and the international approach. 
A) the flow approach and the stock approach. 
B) the expenditures approach and the income approach. 
C) the intermediate approach and the value-added approach. 
D) the domestic approach and the international approach.

Question 3

The total market value of final goods and services produced in an economy during a one-year period is

Accepted Answer

A) gross domestic product. 
B) net national product. 
C) profit. 
D) personal income. 
A) gross domestic product. 
B) net national product. 
C) profit. 
D) personal income.

Question 4

Constant dollar GDP

Accepted Answer

A) is the same as nominal GDP. 
B) is nominal GDP adjusted for price changes from the base year. 
C) is more than constant dollar NDP. 
D) all of these. 
A) is the same as nominal GDP. 
B) is nominal GDP adjusted for price changes from the base year. 
C) is more than constant dollar NDP. 
D) all of these.

Question 5

The total factor payments to all resource owners is

Accepted Answer

A) net domestic product. 
B) personal income. 
C) national income at factor cost. 
D) gross domestic income. 
A) net domestic product. 
B) personal income. 
C) national income at factor cost. 
D) gross domestic income.

Question 6

When economists discuss the nominal value of an economic variable,the variable is

Accepted Answer

A) expressed in current dollars. 
B) expressed as an index figure. 
C) adjusted for a changing price level. 
D) expressed as a percentage. 
A) expressed in current dollars. 
B) expressed as an index figure. 
C) adjusted for a changing price level. 
D) expressed as a percentage.

Question 7

Personal income is equal to

Accepted Answer

A) NDP minus national income. 
B) disposable personal income plus personal income taxes. 
C) disposable personal income plus personal and corporate income taxes. 
D) national income minus corporate income taxes and social security. 
A) NDP minus national income. 
B) disposable personal income plus personal income taxes. 
C) disposable personal income plus personal and corporate income taxes. 
D) national income minus corporate income taxes and social security.

Question 8

Which of the following is part of gross private domestic investment?

Accepted Answer

A) purchases of stocks and bonds 
B) a decline in consumer debt 
C) purchases of hamburgers for a family dinner 
D) a positive change in business inventories 
A) purchases of stocks and bonds 
B) a decline in consumer debt 
C) purchases of hamburgers for a family dinner 
D) a positive change in business inventories

Question 9

What is the difference between GDP and GNP? If Canadians generate the same income abroad as foreigners generate for their Canadian owned assets and enterprises,what will be true about the relation between GDP and GNP?

Accepted Answer

GDP is the value of output using domesti

Question 10

Purchasing power parity refers to

Accepted Answer

A) adjustments in GDP figures to put everything into one common currency for comparison sake. 
B) adjustments in exchange rate conversions that take into account differences in inflation rates across countries. 
C) adjustments in exchange rate conversions that take into account the differences in true cost of living across countries. 
D) calculating real,per capita GDPs in dollars. 
A) adjustments in GDP figures to put everything into one common currency for comparison sake. 
B) adjustments in exchange rate conversions that take into account differences in inflation rates across countries. 
C) adjustments in exchange rate conversions that take into account the differences in true cost of living across countries. 
D) calculating real,per capita GDPs in dollars.

Question 11

Which of the following transactions would be included in the calculation of GDP?

Accepted Answer

A) the purchase of legal services 
B) the purchase of a share of stock in General Motors 
C) the purchase of wheat to make bread 
D) the purchase of a second-hand lawnmower from your friend 
A) the purchase of legal services 
B) the purchase of a share of stock in General Motors 
C) the purchase of wheat to make bread 
D) the purchase of a second-hand lawnmower from your friend

Question 12

Depreciation is

Accepted Answer

A) added to GDP to reach NDP. 
B) the reduction in the value of capital goods due to physical wear and tear. 
C) not included in GDP from the income side. 
D) always higher than the capital consumption allowance. 
A) added to GDP to reach NDP. 
B) the reduction in the value of capital goods due to physical wear and tear. 
C) not included in GDP from the income side. 
D) always higher than the capital consumption allowance.

Question 13

A capital good is

Accepted Answer

A) one produced by the government. 
B) part of investment spending when purchased by either private businesses or by the federal government. 
C) one that is purchased in order to make other goods and services. 
D) not part of GDP because it is an intermediate product. 
A) one produced by the government. 
B) part of investment spending when purchased by either private businesses or by the federal government. 
C) one that is purchased in order to make other goods and services. 
D) not part of GDP because it is an intermediate product.

Question 14

Inventory investment occurs when

Accepted Answer

A) grocers sell stocks of canned goods off their shelves. 
B) individuals invest in an invention. 
C) shopkeepers check their inventories. 
D) automobile dealers add to their stocks of unsold cars. 
A) grocers sell stocks of canned goods off their shelves. 
B) individuals invest in an invention. 
C) shopkeepers check their inventories. 
D) automobile dealers add to their stocks of unsold cars.

Question 15

When we use the term fixed investment,we include in investment

Accepted Answer

A) the purchase of stocks and bonds. 
B) the purchase of consumer goods. 
C) the purchase of private bonds,but not government bonds. 
D) the purchase of equipment and other capital goods. 
A) the purchase of stocks and bonds. 
B) the purchase of consumer goods. 
C) the purchase of private bonds,but not government bonds. 
D) the purchase of equipment and other capital goods.

Question 16

The difference between personal income and disposable personal income is

Accepted Answer

A) disposable personal income includes only the funds available to spend on non-necessities. 
B) personal income taxes are not included in disposable personal income. 
C) personal income includes personal income taxes and indirect business taxes,which are not included in disposable personal income. 
D) personal income does not include transfer payments such as social security payments or welfare payments and disposable personal income includes them. 
A) disposable personal income includes only the funds available to spend on non-necessities. 
B) personal income taxes are not included in disposable personal income. 
C) personal income includes personal income taxes and indirect business taxes,which are not included in disposable personal income. 
D) personal income does not include transfer payments such as social security payments or welfare payments and disposable personal income includes them.

Question 17

Suppose the size of the underground economy is roughly 20% of GDP in Canada.Does this necessarily mean that the government is missing out on collected tax revenues?

Accepted Answer

No.although the government may not be ab

Question 18

Goods that are used up entirely in the production of final goods are known as

Accepted Answer

A) durable goods. 
B) value added goods. 
C) intermediate goods. 
D) consumer goods. 
A) durable goods. 
B) value added goods. 
C) intermediate goods. 
D) consumer goods.

Question 19

Suppose gross domestic product is $5 billion,government business transfer payments are $1 billion,indirect business taxes are $0.5 billion,and depreciation is $0.5 billion.Then national income equals

Accepted Answer

A) $5 billion. 
B) $4 billion. 
C) $3 billion. 
D) $2.7 billion. 
A) $5 billion. 
B) $4 billion. 
C) $3 billion. 
D) $2.7 billion.

Question 20

Comparing two countries GDP over time is likely to be misleading if one wants to determine whether standards of living are better in one country because

Accepted Answer

A) the figures need to be adjusted for different types of currency. 
B) the figures need to be adjusted for price changes and population differences. 
C) the figures need to be adjusted to account for production differences. 
D) NDP instead of GDP should be used. 
A) the figures need to be adjusted for different types of currency. 
B) the figures need to be adjusted for price changes and population differences. 
C) the figures need to be adjusted to account for production differences. 
D) NDP instead of GDP should be used.

An indirect business tax

The two principle methods of measuring GDP are

The total market value of final goods and services produced in an economy during a one-year period is

Constant dollar GDP

The total factor payments to all resource owners is

When economists discuss the nominal value of an economic variable,the variable is

Personal income is equal to

Which of the following is part of gross private domestic investment?

What is the difference between GDP and GNP? If Canadians generate the same income abroad as foreigners generate for their Canadian owned assets and enterprises,what will be true about the relation between GDP and GNP?

Purchasing power parity refers to

Which of the following transactions would be included in the calculation of GDP?

Depreciation is

A capital good is

Inventory investment occurs when

When we use the term fixed investment,we include in investment

The difference between personal income and disposable personal income is

Suppose the size of the underground economy is roughly 20% of GDP in Canada.Does this necessarily mean that the government is missing out on collected tax revenues?

Goods that are used up entirely in the production of final goods are known as

Suppose gross domestic product is $5 billion,government business transfer payments are $1 billion,indirect business taxes are $0.5 billion,and depreciation is $0.5 billion.Then national income equals

Comparing two countries GDP over time is likely to be misleading if one wants to determine whether standards of living are better in one country because

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

An indirect business tax

The two principle methods of measuring GDP are

The total market value of final goods and services produced in an economy during a one-year period is

Constant dollar GDP

The total factor payments to all resource owners is

When economists discuss the nominal value of an economic variable,the variable is

Personal income is equal to

Which of the following is part of gross private domestic investment?

What is the difference between GDP and GNP? If Canadians generate the same income abroad as foreigners generate for their Canadian owned assets and enterprises,what will be true about the relation between GDP and GNP?

Purchasing power parity refers to

Which of the following transactions would be included in the calculation of GDP?

Depreciation is

A capital good is

Inventory investment occurs when

When we use the term fixed investment,we include in investment

The difference between personal income and disposable personal income is

Suppose the size of the underground economy is roughly 20% of GDP in Canada.Does this necessarily mean that the government is missing out on collected tax revenues?

Goods that are used up entirely in the production of final goods are known as

Suppose gross domestic product is $5 billion,government business transfer payments are $1 billion,indirect business taxes are $0.5 billion,and depreciation is $0.5 billion.Then national income equals

Comparing two countries GDP over time is likely to be misleading if one wants to determine whether standards of living are better in one country because

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