Question 1

Which of the following will result in an increase in the stock of capital goods?

Accepted Answer

A) If net investment is negative. 
B) If net investment is positive. 
C) If gross investment is less than consumption. 
D) If gross investment is negative.

Question 2

Which of the following is equivalent to unplanned investment?

Accepted Answer

A) Net foreign factor income. 
B) Change in inventories. 
C) Depreciation. 
D) Change in consumption.

Question 3

-Refer to the above to answer this question.What is flow (4)?

Accepted Answer

A) Consumer goods and services. 
B) Factor services. 
C) Factor incomes. 
D) Consumption.

Question 4

Distinguish between savings and investment.

Accepted Answer

The answer of Distinguish between savings and investment....

Question 5

Which index of well-being includes data on life expectancy and literacy rates?

Accepted Answer

A) Human Development Index. 
B) Gross Domestic Product. 
C) Standard of Life Index. 
D) Consumer Price Index. 
E) Economic Growth Index.

Question 6

If 120 workers could produce 600 widgets in a day,what is the daily productivity per worker?

Accepted Answer

A) 120. 
B) 5. 
C) 72,000. 
D) 600.

Question 7

At equilibrium,aggregate expenditures and income are equal.

Accepted Answer

A) True 
 B)False

Question 8

A leakage is a stock of income.

Accepted Answer

A) True 
 B)False

Question 9

What is the value of production?

Accepted Answer

A) It always equals total expenditures. 
B) At equilibrium,it equals total expenditures. 
C) It equals C + I + X. 
D) It depends on the rate of savings. 
E) It is determined by inventory changes.

Question 10

Residential construction is not part of investment.

Accepted Answer

A) True 
 B)False

Question 11

In a closed economy with a public sector,what are the two conditions for equilibrium?

Accepted Answer

The answer of In a closed economy with a public...

Question 12

Explain why transfer payments are not included as part of government expenditure.

Accepted Answer

The answer of Explain why transfer payments are not included...

Question 13

What is consumption?

Accepted Answer

A) The amount by which the capital stock is used up each year. 
B) The amount by which the stock of consumer durables is used up each year. 
C) The expenditure by households on goods and services. 
D) The expenditure by firms on goods and services.

Question 14

What are two things that are true when an economy is in equilibrium?

Accepted Answer

The answer of What are two things that are true...

Question 15

Real GDP and real GDP per capita are two indicators used by the government to measure economic growth.Define them,and explain why growth of per capita real output is a more accurate measurement of economic growth.

Accepted Answer

The answer of Real GDP and real GDP per capita...

Question 16

Under which circumstance will the level of national income expand?

Accepted Answer

A) If injections increase. 
B) If savings expand. 
C) If government spending is reduced. 
D) If taxes increase. 
E) None of these.

Question 17

In terms of overall average growth rate of real GDP,from 2007-2012 and 2013-2017,how did Canada compare with the other G7 countries?

Accepted Answer

A) It had the lowest rate of real GDP in both periods when compared with the other G7 countries. 
B) It had the lowest rate of real GDP in 2007-2012 and the highest rate of real GDP in 2013-2017. 
C) It had the highest rate of real GDP in both periods when compared with the other G7 countries. 
D) It had the highest rate of real GDP in 2007-2012,and the 3rd highest rate of real GDP in 2013-2017.

Question 18

Explain how GDP can be understated.

Accepted Answer

The answer of Explain how GDP can be understated....

Question 19

What are net exports?

Accepted Answer

A) Exports less imports. 
B) Exports plus imports. 
C) Exports plus consumption. 
D) Exports plus consumption less imports.

Question 20

If the value of production is $1,000,aggregate expenditure is $950 and ending inventory is $250.What is the value of beginning inventory?

Accepted Answer

The answer of If the value of production is $1,000,aggregate...

Exam 3: Measuring the Economy 1: GDP and Economic Growth

Which of the following will result in an increase in the stock of capital goods?

Which of the following is equivalent to unplanned investment?

-Refer to the above to answer this question.What is flow (4) ?

Distinguish between savings and investment.

Which index of well-being includes data on life expectancy and literacy rates?

If 120 workers could produce 600 widgets in a day,what is the daily productivity per worker?

At equilibrium,aggregate expenditures and income are equal.

A leakage is a stock of income.

What is the value of production?

Residential construction is not part of investment.

In a closed economy with a public sector,what are the two conditions for equilibrium?

Explain why transfer payments are not included as part of government expenditure.

What is consumption?

What are two things that are true when an economy is in equilibrium?

Real GDP and real GDP per capita are two indicators used by the government to measure economic growth.Define them,and explain why growth of per capita real output is a more accurate measurement of economic growth.

Under which circumstance will the level of national income expand?

In terms of overall average growth rate of real GDP,from 2007-2012 and 2013-2017,how did Canada compare with the other G7 countries?

Explain how GDP can be understated.

What are net exports?

If the value of production is $1,000,aggregate expenditure is $950 and ending inventory is $250.What is the value of beginning inventory?