Question 1

Use the following to answer questions: 
-(Table: Pizza Economy III) Use Table: Pizza Economy III.Considering 2010 as the base year,given that total population was 1 140 in 2010 and 1 380 in 2011,real GDP per capita between 2010 and 2011 grew at a rate of _____%.

Accepted Answer

A)   -50
B)   -25
C)   50
D)   75E) B) and C)
F) All of the above

Question 2

GDP is the total dollar value of all:

Accepted Answer

A)   intermediate goods and services produced in the economy in a given period.
B)   wages paid to producing workers in a given period.
C)   final goods and services produced in the economy in a given period.
D)   government production in a given period.E) A) and D)
F) A) and C)

Question 3

Steel manufactured to make a car is not counted in aggregate output,but the car that results is counted.

Accepted Answer

A) True 
 B)False

Question 4

In Canada,government spending accounts for approximately_____% of GDP.

Accepted Answer

A)   5
B)   10
C)   20
D)   30E) A) and B)
F) B) and D)

Question 5

Households supply goods and services in the product markets.

Accepted Answer

A) True 
 B)False

Question 6

Use the following to answer questions: 
-(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model.How much is total government spending?

Accepted Answer

A)   $20
B)   $220
C)   $370
D)   $200E) None of the above
F) All of the above

Question 7

The price index in the current year is the cost of the market basket in the current year divided by the cost of the market basket in the base year.

Accepted Answer

A) True 
 B)False

Question 8

Nominal GDP was $5 803 billion in 1994 and $11 734 billion in 2008,we can conclude that aggregate output roughly doubled over the 14-year period.

Accepted Answer

A) True 
 B)False

Question 9

The industrial producer price index is also known as the manufacturing price index.

Accepted Answer

A) True 
 B)False

Question 10

Flows of money,goods and services,and factors of production through the economy are all shown in the circular-flow diagram.

Accepted Answer

A) True 
 B)False

Question 11

Use the following to answer questions: 
-(Table: Per Capita GDP) Use Table: Per Capita GDP.Per capita real GDP in 2014 was:

Accepted Answer

A)   $600.
B)   $800.
C)   $300.
D)   $400.E) B) and D)
F) All of the above

Question 12

Assume that,in the base year (2011) ,a country's nominal GDP is $10 000 billion.The country has had 5% inflation each year since 2006.Real GDP of 2011 is equal to:

Accepted Answer

A)   $10 500 billion.
B)   $11 025 billion.
C)   $10 000 billion.
D)   $9 500 billion.E) All of the above
F) A) and B)

Question 13

Suppose that,in year 1,an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each.The next year,the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each.Using year 1 as the base year,real GDP in year 2 is:

Accepted Answer

A)   $900.
B)   $970.
C)   $1 000.
D)   $1 077.50.E) C) and D)
F) A) and B)

Question 14

Use the following to answer questions: 
-(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model.The flow of funds into and out of financial markets is:

Accepted Answer

A)   $70.
B)   $110.
C)   $170.
D)   $300.E) B) and C)
F) None of the above

Question 15

If the consumer price index changes from 120 to 125 between December 2009 and December 2010,the:

Accepted Answer

A)   inflation rate for 2010 is 4.2%.
B)   inflation rate for 2010 is 5%.
C)   deflation rate for 2010 is 5%.
D)   deflation rate for 2010 is 4.2%.E) C) and D)
F) B) and C)

Question 16

An example of investment spending is the:

Accepted Answer

A)   amount of funds raised by the government in the financial markets.
B)   purchase of government bonds by a private household.
C)   purchase of a freezer by an ice-cream parlor.
D)   purchase of stock shares by a mutual fund.E) None of the above
F) All of the above

Question 17

The consumer price index is intended to show how the cost of all purchases by a typical urban family has changed over time.

Accepted Answer

A) True 
 B)False

Question 18

The national accounts do NOT keep track of:

Accepted Answer

A)   the spending of consumers and the government.
B)   the sales of producers.
C)   business investment.
D)   exchange rates.E) All of the above
F) None of the above

Question 19

Use the following to answer questions: 
-(Table: Per Capita GDP) Per capita nominal GDP in 2011 was:

Accepted Answer

A)   $600.
B)   $400.
C)   $300.
D)   $30.E) A) and D)
F) A) and C)

Question 20

The price index in the base year is normalized so that it equals 100 in the base year.

Accepted Answer

A) True 
 B)False

Exam 7: Gdp and the Cpi: Tracking the Macroeconomy

The industrial producer price index is also known as the manufacturing price index.

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Table: Pizza Economy III) Use Table: Pizza Economy III.Considering 2010 as the base year,given that total population was 1 140 in 2010 and 1 380 in 2011,real GDP per capita between 2010 and 2011 grew at a rate of _____%.

Correct AnswerverifiedShow Answer

Use the following to answer questions: -(Table: Per Capita GDP) Per capita nominal GDP in 2011 was:

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Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model.The flow of funds into and out of financial markets is:

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The consumer price index is intended to show how the cost of all purchases by a typical urban family has changed over time.

Correct AnswerverifiedShow Answer

Assume that,in the base year (2011) ,a country's nominal GDP is $10 000 billion.The country has had 5% inflation each year since 2006.Real GDP of 2011 is equal to:

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If the consumer price index changes from 120 to 125 between December 2009 and December 2010,the:

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An example of investment spending is the:

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The price index in the current year is the cost of the market basket in the current year divided by the cost of the market basket in the base year.

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Use the following to answer questions: -(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model.How much is total government spending?

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GDP is the total dollar value of all:

Correct AnswerverifiedShow Answer

Flows of money,goods and services,and factors of production through the economy are all shown in the circular-flow diagram.

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Suppose that,in year 1,an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each.The next year,the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each.Using year 1 as the base year,real GDP in year 2 is:

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Use the following to answer questions: -(Table: Per Capita GDP) Use Table: Per Capita GDP.Per capita real GDP in 2014 was:

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Nominal GDP was $5 803 billion in 1994 and $11 734 billion in 2008,we can conclude that aggregate output roughly doubled over the 14-year period.

Correct AnswerverifiedShow Answer

Steel manufactured to make a car is not counted in aggregate output,but the car that results is counted.

Correct AnswerverifiedShow Answer

Households supply goods and services in the product markets.

Correct AnswerverifiedShow Answer

The price index in the base year is normalized so that it equals 100 in the base year.

Correct AnswerverifiedShow Answer

In Canada,government spending accounts for approximately_____% of GDP.

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The national accounts do NOT keep track of:

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