Question 1

The largest component of total expenditures in Canada is:

Accepted Answer

A)   net exports.
B)   government purchases.
C)   consumption.
D)   gross investment.

Question 2

GDP data are criticized as being inaccurate measures of economic welfare because:

Accepted Answer

A)   they do not take into account changes in the amount of leisure.
B)   they do not take into account changes in product quality.
C)   they do not take into account the adverse effects of economic activity on the environment.
D)   of all of the above considerations.

Question 3

The following are national income account data for a hypothetical economy in billions of dollars: gross investment ($320) ;imports ($35) ;exports ($22) ;personal consumption expenditures ($2,460) ;and,government purchases ($470) .What is GDP in this economy?

Accepted Answer

A)   $3,237 billion
B)   $3,263 billion
C)   $3,273 billion
D)   $3,290 billion

Question 4

An economy is enlarging its stock of capital goods:

Accepted Answer

A)   when net investment exceeds gross investment.
B)   when gross investment exceeds replacement investment.
C)   whenever gross investment is positive.
D)   when replacement investment exceeds gross investment.

Question 5

Refer to the data below and using year 1 as the base year,the real GDP in year 4 was approximately:

Accepted Answer

A)   $3,989 billion.
B)   $3,562 billion.
C)   $3,774 billion.
D)   $3,494 billion.

Question 6

Which would be considered an investment according to economists?

Accepted Answer

A)   the purchase of newly-issued shares of stock in Microsoft
B)   the construction of a new computer chip factory by Intel
C)   the purchase of shares of stock by Fidelity,a mutual fund company
D)   the sale of government bonds by the nation's central bank

Question 7

Refer to the information below.GDP is:
All figures are in billions of dollars.

Accepted Answer

A)   $422
B)   $467
C)   $417
D)   $402

Question 8

Real GDP is:

Accepted Answer

A)   the nominal value of all goods and services produced in the economy.
B)   the nominal value of all goods and services produced in the domestic economy corrected for inflation or deflation.
C)   that aggregate output which is produced when the economy is operating at full employment.
D)   always greater than nominal GDP.

Question 9

GDP excludes:

Accepted Answer

A)   the market value of household production.
B)   the production of illegal goods.
C)   off-the-books production.
D)   all of the above.

Question 10

In an economy,the value of inventories rose from $275 billion in 2000 to $300 billion in 2001.In calculating total investment for 2001,national income accountants would increase it by $25 billion.

Accepted Answer

A) True 
 B)False

Question 11

-Refer to the above information.Negative net investment is occurring in:

Accepted Answer

A)   economy A only.
B)   economy B only.
C)   economy C only.
D)   economies A and B only.

Question 12

Suppose the total market value of all final goods and services produced in a particular country in 2000 is $600 billion and the total market value of final goods and services sold is $525 billion.We can conclude that:

Accepted Answer

A)   GDP in 2000 is $525 billion.
B)   NDI in 2000 is $525 billion.
C)   GDP in 2000 is $600 billion.
D)   inventories in 2000 fell by $75 billion.

Question 13

Wages,salaries,and supplementary labour income in Canada:

Accepted Answer

A)   is about 30% of the income categories.
B)   is the smallest category in the calculation of the GDP by the income approach.
C)   is the largest category in the calculation of the GDP by the income approach.
D)   is the only category in the calculation of the GDP by the income approach.

Question 14

Net investment refers to:

Accepted Answer

A)   the amount of machinery and equipment used up in producing GDP in a specific year.
B)   the difference between the market value and book value of outstanding capital stock.
C)   gross domestic investment less net exports.
D)   gross investment less consumption of fixed capital.

Question 15

If all the final goods and intermediate goods and services were included in GDP:

Accepted Answer

A)   the GDP would then have to be deflated for changes in the price level.
B)   nominal GDP would exceed real GDP.
C)   the GDP would be overstated.
D)   the GDP would be understated.

Question 16

The fact that nominal GDP has risen faster than real GDP:

Accepted Answer

A)   suggests that the base year of the GDP price index has been shifted.
B)   tells us nothing about what has happened to the price level.
C)   suggests that the general price level has fallen.
D)   suggests that the general price level has risen.

Question 17

Nominal GDP is adjusted for price changes through the use of:

Accepted Answer

A)   the Consumer Price Index (CPI) .
B)   the Producer Price Index (PPI) .
C)   the GDP price index.
D)   exchange rates.

Question 18

Which is included in GDP?

Accepted Answer

A)   used autos purchased by consumers
B)   transfer payments
C)   telephone service for a home
D)   bread for a restaurant

Question 19

A price index can rise from one year to the next even though:

Accepted Answer

A)   some individual prices in the economy fall.
B)   nominal GDP falls.
C)   real GDP falls.
D)   all of the above occur.

Question 20

A nation's stock of capital goods will decline when:

Accepted Answer

A)   gross investment exceeds net investment.
B)   net investment is positive,but less than gross investment.
C)   depreciation exceeds gross investment.
D)   gross investment exceeds depreciation.

Exam 7: Measuring the Economys Output

Which would be considered an investment according to economists?

Correct AnswerverifiedShow Answer

The following are national income account data for a hypothetical economy in billions of dollars: gross investment ($320) ;imports ($35) ;exports ($22) ;personal consumption expenditures ($2,460) ;and,government purchases ($470) .What is GDP in this economy?

Correct AnswerverifiedShow Answer

A nation's stock of capital goods will decline when:

Correct AnswerverifiedShow Answer

A price index can rise from one year to the next even though:

Correct AnswerverifiedShow Answer

The fact that nominal GDP has risen faster than real GDP:

Correct AnswerverifiedShow Answer

The largest component of total expenditures in Canada is:

Correct AnswerverifiedShow Answer

Real GDP is:

Correct AnswerverifiedShow Answer

Wages,salaries,and supplementary labour income in Canada:

Correct AnswerverifiedShow Answer

Which is included in GDP?

Correct AnswerverifiedShow Answer

GDP excludes:

Correct AnswerverifiedShow Answer

If all the final goods and intermediate goods and services were included in GDP:

Correct AnswerverifiedShow Answer

In an economy,the value of inventories rose from $275 billion in 2000 to $300 billion in 2001.In calculating total investment for 2001,national income accountants would increase it by $25 billion.

Correct AnswerverifiedShow Answer

An economy is enlarging its stock of capital goods:

Correct AnswerverifiedShow Answer

Refer to the data below and using year 1 as the base year,the real GDP in year 4 was approximately:

Correct AnswerverifiedShow Answer

Nominal GDP is adjusted for price changes through the use of:

Correct AnswerverifiedShow Answer

Suppose the total market value of all final goods and services produced in a particular country in 2000 is $600 billion and the total market value of final goods and services sold is $525 billion.We can conclude that:

Correct AnswerverifiedShow Answer

-Refer to the above information.Negative net investment is occurring in:

Correct AnswerverifiedShow Answer

Refer to the information below.GDP is: All figures are in billions of dollars.

Correct AnswerverifiedShow Answer

GDP data are criticized as being inaccurate measures of economic welfare because:

Correct AnswerverifiedShow Answer

Net investment refers to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified