Question 1

The purchase of a new house is included in

Accepted Answer

A)  consumption expenditures.
B)  investment expenditures.
C)  government purchases.
D)  exports.
E)  imports.

Question 2

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

Accepted Answer

A)  average price levels of goods and services in the economy.
B)  price charged for laptop computers by Dell.
C)  wages paid to employees by Dell.
D)  quantity of Dell employees.
E)  the prices of substitutes for computers.

Question 3

If real GDP is larger than nominal GDP

Accepted Answer

A)  prices must be lower than in the base year.
B)  prices must be higher than in the base year.
C)  the economy must be growing.
D)  the economy must be shrinking.
E)  prices and output must be constant.

Question 4

Which of the following transactions would take place in the "underground economy"?

Accepted Answer

A)  Elizabeth tells her mother she's going to work but she really goes to see a movie.
B)  Paul buys 30 litres of gasoline for $1.29 a liter,not realizing that a fraction of that price goes to the government as tax revenue.
C)  John makes chain-link belts and necklaces and sells them at a local flea market for cash to avoid paying taxes.
D)  Matt bought an iPad for $499 but decided to sell it on eBay instead of keeping it.
E)  Sam works as a consultant on the side and doesn't tell the university he works for.

Question 5

Table 4.1.1
 
-Refer to Table 4.1.1.Based on the information provided,what is GDP in this economy using the income approach?

Accepted Answer

A)  $1,700 million
B)  $1,750 million
C)  $3,006 million
D)  $3,656 million
E)  $4,256 million

Question 6

In periods when prices are falling,on average,

Accepted Answer

A)  real GDP will grow slower than nominal GDP.
B)  real GDP will grow faster than nominal GDP.
C)  real GDP will grow as fast as nominal GDP.
D)  real GDP will certainly be lower than nominal GDP.
E)  real GDP cannot be calculated.

Question 7

Table 4.19
  A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2007 and 2017 are shown in the table above.
-Refer to Table 4.19.What is nominal GDP in 2017?

Accepted Answer

A)  $3,320
B)  $3,690
C)  $6,360
D)  $7,035
E)  $8,340

Question 8

In the first half 2015 some Canadian businesses outside the natural resource sector saw a slow down in orders,these businesses were experiencing the effects of

Accepted Answer

A)  deflation.
B)  the underground economy.
C)  the business cycle.
D)  depreciation.
E)  global warming.

Question 9

Suppose,in 2018,you purchased a house built in 2010.Which of the following would be included in the gross domestic product for 2018?

Accepted Answer

A)  the value of the house in 2018
B)  the value of the house in 2010
C)  the value of the house in 2018 minus depreciation
D)  the value of the services of the real estate agent
E)  the value of the down payment you made on the mortgage

Question 10

Net National Income equals Gross National Income minus

Accepted Answer

A)  imports.
B)  depreciation.
C)  inventories.
D)  changes in inventories.
E)  exports.

Question 11

Table 4.19
  A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2007 and 2017 are shown in the table above.
-Refer to Table 4.19.What is nominal GDP in 2007?

Accepted Answer

A)  $3,320
B)  $3,690
C)  $6,360
D)  $7,035
E)  $8,340

Question 12

In comparing China to the United Kingdom,China's relatively ________ growth rate in GDP would make you more likely to take a job in China,and China's relatively ________ level of GDP would make you less likely to take a job in China.

Accepted Answer

A)  high; low
B)  high; high
C)  low; low
D)  low; high
E)  stable; volatile

Question 13

Investment,as defined by economists,would not include which of the following? Ford

Accepted Answer

A)  buys a new robotic machine (from a plant in Ontario) to assemble cars.
B)  adds 1,000 new cars to inventories.
C)  builds another assembly plant in Oakville,Ontario.
D)  buys Canadian government bonds.
E)  buys new computers for its human resources department.

Question 14

In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

Accepted Answer

A)  equals
B)  is greater than
C)  is less than
D)  may be greater than or less than
E)  is unrelated to

Question 15

Table 4.13
  Consider the data shown above for Vicuna,a country that produces only two products: oranges and shirts.
-Refer to Table 4.13.Nominal GDP for Vicuna for 2017 equals

Accepted Answer

A)  $4,920.
B)  $5,100.
C)  $5,300.
D)  $5,850.
E)  $6,250.

Question 16

Transfer payments are subtracted from net national income to get to Household income.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following equations correctly measures GDP in an economy?

Accepted Answer

A)  GDP = C + I + G + X
B)  GDP = C + net I + G + NX
C)  GDP = C + I + G + NX
D)  GDP = C + G + I - taxes
E)  GDP = C + I + G + NX + wages

Question 18

Presently,GDP is ________ to compensate for the costs of environmental damage.

Accepted Answer

A)  fully adjusted
B)  partially adjusted
C)  adjusted on a chain-weight basis
D)  not adjusted
E)  adjusted using base year values of environmental quality

Question 19

Depreciation is

Accepted Answer

A)  the value of worn-out equipment,machinery,and buildings.
B)  the value of the decrease in business inventory stocks.
C)  the value of the addition to the capital stock.
D)  the decline in the value of the stock market,net of dividends.
E)  the decline in the value of the Canadian dollar do to inflation.

Question 20

If the value added of a firm is positive,will the firm necessarily have positive profits?

Accepted Answer

No.Value added equals the price of the f...

Exam 4: GDP: Measuring Total Production and Income

Net National Income equals Gross National Income minus

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In the circular flow model,the value of total production for an economy ________ the value of total expenditures on final goods and services.

Correct AnswerverifiedShow Answer

In comparing China to the United Kingdom,China's relatively ________ growth rate in GDP would make you more likely to take a job in China,and China's relatively ________ level of GDP would make you less likely to take a job in China.

Correct AnswerverifiedShow Answer

Which of the following transactions would take place in the "underground economy"?

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In periods when prices are falling,on average,

Correct AnswerverifiedShow Answer

Table 4.1.1 -Refer to Table 4.1.1.Based on the information provided,what is GDP in this economy using the income approach?

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Investment,as defined by economists,would not include which of the following? Ford

Correct AnswerverifiedShow Answer

Depreciation is

Correct AnswerverifiedShow Answer

Presently,GDP is ________ to compensate for the costs of environmental damage.

Correct AnswerverifiedShow Answer

In the first half 2015 some Canadian businesses outside the natural resource sector saw a slow down in orders,these businesses were experiencing the effects of

Correct AnswerverifiedShow Answer

The purchase of a new house is included in

Correct AnswerverifiedShow Answer

If the value added of a firm is positive,will the firm necessarily have positive profits?

Correct AnswerverifiedNo.Value added equals the price of the f...View AnswerShow Answer

Macroeconomics,as opposed to microeconomics,includes the study of what determines the

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Transfer payments are subtracted from net national income to get to Household income.

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If real GDP is larger than nominal GDP

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Which of the following equations correctly measures GDP in an economy?

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Table 4.13 Consider the data shown above for Vicuna,a country that produces only two products: oranges and shirts. -Refer to Table 4.13.Nominal GDP for Vicuna for 2017 equals

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Table 4.19 A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2007 and 2017 are shown in the table above. -Refer to Table 4.19.What is nominal GDP in 2007?

Correct AnswerverifiedShow Answer

Table 4.19 A very simple economy produces three goods: movies,burgers,and bikes.The quantities produced and their corresponding prices for 2007 and 2017 are shown in the table above. -Refer to Table 4.19.What is nominal GDP in 2017?

Correct AnswerverifiedShow Answer

Suppose,in 2018,you purchased a house built in 2010.Which of the following would be included in the gross domestic product for 2018?

Correct AnswerverifiedShow Answer

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In comparing China to the United Kingdom,China's relatively growth rate in GDP would make you more likely to take a job in China,and China's relatively level of GDP would make you less likely to take a job in China.

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No.Value added equals the price of the f...
View Answer

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