 |
1 | |
Canada's official GDP is calculated: |
| | A) | using the income approach, since the expenditure approach is too difficult to apply in practical situations. |
| | B) | using the expenditure approach, since the income approach is too difficult to apply in practical situations. |
| | C) | using the higher of the two estimates found using the income and expenditure approaches. |
| | D) | using the lower of the two estimates found using the income and expenditures approaches. |
| | E) | using both the income and expenditures approaches, with the concept of statistical discrepancy being applied to balance the two estimates. |
|
|
2 | |
Which of the following is not included in the income approach to GDP? |
| | A) | proprietors' incomes and rents |
| | B) | wages and salaries |
| | C) | direct taxes |
| | D) | corporate profits |
| | E) | depreciation |
|
|
3 | |
Identify the intermediate product from the goods listed below: |
| | A) | a hamburger bought for lunch by an office clerk |
| | B) | coffee beans purchased by a coffee shop |
| | C) | a tractor bought by a farmer |
| | D) | flour purchased by a homemaker to make bread |
| | E) | a submarine purchased by a government department |
|
|
4 | |
To avoid the problem of double counting in the calculation of GDP, national income accountants: |
| | A) | deduct the total value of intermediate products from the total value of final products. |
| | B) | include only intermediate products. |
| | C) | deduct the total value of intermediate products from total resource incomes. |
| | D) | count only the value added at each stage of production. |
| | E) | deduct the total value of final products from the total value of intermediate products. |
|
|
5 | |
Which of the following transactions is not included in GDP? |
| | A) | A government worker receives a paycheque. |
| | B) | A music store buys 100 CDs to add to its inventories. |
| | C) | A financial investor buys 100 shares of a Canadian corporation. |
| | D) | A student purchases a magazine. |
| | E) | A firm buys a piece of software. |
|
|
6 | |
Which of the following is not included in the expenditure approach to GDP? |
| | A) | government transfer payments |
| | B) | personal consumption |
| | C) | net exports |
| | D) | gross investment |
| | E) | government purchases. |
|
|
7 | |
When a country's capital stock is growing: |
| | A) | net investment exceeds gross investment. |
| | B) | net investment is positive. |
| | C) | gross investment is positive. |
| | D) | gross investment exceeds net investment. |
| | E) | gross investment is negative. |
|
|
8 | |
Gross investment: |
| | A) | is always financed out of investment funds. |
| | B) | is always financed out of retained earnings. |
| | C) | is financed out of both investment funds and retained earnings. |
| | D) | excludes changes in inventories. |
| | E) | excludes depreciation of existing capital assets. |
|
|
9 | |
To compare living standards in the same country in different years, the indicator that is used is: |
| | A) | GDP. |
| | B) | real GDP. |
| | C) | per capita GDP. |
| | D) | per capita real GDP. |
| | E) | GDP expressed in US dollars. |
|
|
10 | |
To compare living standards in different countries at the same time, an indicator that is often used is: |
| | A) | per capita GDP expressed in the each of the countries' own currencies. |
| | B) | per capita real GDP expressed in each of the countries' own currencies. |
| | C) | per capita GDP expressed in US dollars. |
| | D) | GDP expressed in US dollars. |
| | E) | GDP expressed in each of the countries' own currencies. |
|
|
11 | |
GDP can: |
| | A) | understate gains in Canadian economic well-being, because it does not take into account greater amounts of leisure. |
| | B) | understate gains in economic well-being, since it does not take into account the growth in the underground economy. |
| | C) | overstate gains in Canadian economic well-being, given that it does not include the environmental damage associated with economic growth. |
| | D) | understate gains in Canadian economic well-being, because it does not reflect increases in product quality. |
| | E) | all of the above |
|
|
12 | |
Purchasing-power parity (PPP) adjustment involves expressing Country X's per capita GDP in terms of: |
| | A) | Country X's own currency, adjusted for US inflation.. |
| | B) | US dollars, adjusted for the fact that the amount the US dollar can buy in each country differs. |
| | C) | US dollars, adjusted for US inflation. |
| | D) | Country X's own currency, adjusted for Country X's inflation. |
| | E) | US dollars, adjusted for Country X's inflation. |
|
|
13 | |
GNP is found by: |
| | A) | deducting net investment income from the rest of the world from GDP. |
| | B) | adding net investment income from the rest of the world to disposable income. |
| | C) | deducting net investment income to the rest of the world from GDP. |
| | D) | adding net investment income to the rest of the world to disposable income. |
| | E) | none of the above |
|
|
14 | |
In Canada:: |
| | A) | GNP tends to be greater than GDP because of the extensive financial holdings by Canadians in other countries. |
| | B) | GNP tends to be greater than GDP because of the extensive financial holdings by foreigners in Canada. |
| | C) | GNP tends to be less than GDP because of the extensive financial holdings by Canadians in other countries. |
| | D) | GNP tends to be less than GDP because of the extensive financial holdings by foreigners in Canada. |
| | E) | GNP and GDP tend to be equal. |
|
|
15 | |
Household income after payment of income taxes is known as: |
| | A) | gross domestic product (or GDP). |
| | B) | gross national product (or GNP). |
| | C) | per capita GDP. |
| | D) | disposable income (DI). |
| | E) | none of the above |
|
|
16 | |
The Human Development Index designed by Mahbub ul Haq |
| | A) | includes per capita GDP measured in each country's currency. |
| | B) | includes per capita GDP adjusted for purchasing power parity. |
| | C) | includes the infant mortality rate for each country. |
| | D) | includes a measure of environmental quality for each country. |
| | E) | includes a measure of the equality of the distribution of income in each country. |
|