 |
| 1 | |
Which of the following is included by Statistics Canada in investment? |
| | A) | An increase in business inventories from one year to the next |
| | B) | The purchase of any durable good, such as a car or television |
| | C) | An increase in total saving in the economy |
| | D) | The change in the value of mutual funds from one year to the next |
|
|
|
| 2 | |
Which of the following is regarded as real capital? |
| | A) | A savings account |
| | B) | A Bank of Montreal share |
| | C) | A dump truck |
| | D) | A share certificate |
|
|
|
| 3 | |
Which of the following leads to an understatement of total production? |
| | A) | The exclusion of work done by homemakers |
| | B) | A decrease in the HST rate |
| | C) | Government spending on an oil-spill cleanup |
| | D) | The exclusion of intermediate goods |
|
|
|
| 4 | |
Which of the following will result in an increase in the stock of capital goods? |
| | A) | Net investment is negative. |
| | B) | Net investment is positive. |
| | C) | Gross investment is less than consumption. |
| | D) | Gross investment is negative. |
|
|
|
| 5 | |
What is the level of savings in an economy with no government and no international trade, if total factor income is $600 and consumption spending is $480? |
| | A) | -$120 |
| | B) | $120 |
| | C) | $1080 |
| | D) | Cannot be determined from the information given |
|
|
|
| 6 | |
What does the simple circular flow show? |
| | A) | Households are both buyers and sellers of products and resources. |
| | B) | Businesses are sellers of resources and buyers of products. |
| | C) | Households are buyers of products and sellers of resources. |
| | D) | Businesses are sellers and households are buyers of both products and resources. |
| | E) | Businesses both buy and sell products and resources, whereas households only buy. |
|
|
|
| 7 | |
What could cause an increase in nominal GDP? |
| | A) | An increase in the output of goods and services but no change in prices |
| | B) | An increase in the prices of goods and services but no change in their output |
| | C) | An increase in both the output and the prices of goods and services |
| | D) | All of the above |
|
|
|
| 8 | |
What is true about aggregate expenditure? |
| | A) | It always equals national income |
| | B) | At equilibrium it is equal to national income |
| | C) | It equals C + I + X |
| | D) | It depends on the rate of savings |
| | E) | It is determined by inventory changes |
|
|
|
| 9 | |
A high economic growth rate may not mean a better life for the population. Which of the following statements supports that contention? |
| | A) | Work such as housecleaning, which used to be entirely a nonmarket activity, is becoming more and more a market activity. |
| | B) | Higher production has negative side effects, such as more pollution. |
| | C) | In the measurement of GDP, no distinction is made as to the type of goods produced. |
| | D) | All of the above. |
|
|
|
| 10 | |
What would be the effect if one half of the population did the housework for the other half of the population, and vice versa, and each group paid the other for these services? |
| | A) | GDP would not be affected because the one set of transactions would cancel out the other. |
| | B) | GDP would rise. |
| | C) | GDP would fall. |
| | D) | GDP would not be affected, but the personal incomes of people would be. |
|
|
|
| 11 | |
What is included in consumption and investment spending, respectively? |
| | A) | Spending on domestically produced goods and services, and on real capital |
| | B) | Spending on domestically produced and foreign-produced goods and services, and on real capital |
| | C) | Spending on domestically produced goods and services and on net foreign investment income |
| | D) | Spending on domestically produced goods and services, and on the purchase of stocks and bonds |
|
|
.