Question 1

The following data are estimates describing Ireland?s economy in 2006 and 2007 in millions of euros, in constant prices): $$\begin{array} { l l l } 
& { \mathbf { 2 0 0 6 } } & \mathbf { 2 0 0 7 } \
\text { Consumption } & 84,000 & 89,000 \
\text { Government expenditure } & 24,000 & 26,000 \
\text { Investment } & 48,000 & 48,000 \
\text { Exports } & 142,000 & 151,000 \
\text { Imports } & 123,000 & 128,000 \
\text { Subsidies } & 1,800 & 1,900 \
\text { Taxes } & 500 & 500
\end{array}$$ Which of the following is true regarding Ireland?s economy?

Accepted Answer

Consumption in 2007 was 89,000 million euros. To find GDP, use the formula: GDP = Consumption + Government Expenditure + Investment + (Exports - Imports). For 2007, GDP = 89,000 + 26,000 + 48,000 + (151,000 - 128,000) = 186,000 million euros. Consumption as a percentage of GDP is (89,000 / 186,000) * 100% = 47.85%, approximately 48%.

Question 2

The following data show Uruguay?s GDP using purchasing power parity in billions of dollars. $\begin{array}{ll}
\text {year }&2000&2001&2002&2003&2004&2005&2006&2007&2008\
GDP(\$)&26.1&25.8&23.3&24.3&27.9&30.1&33.9&37.2&40.2
\end{array}$
 Using the data, we can conclude that

Accepted Answer

The answer of The following data show Uruguay?s GDP using...

Question 3

Canadaʹs economy expanded by...0.1 percent in the second quarter...further evidence that the economy has stalled...following a first quarter slip in gross domestic product. The second quarter figures fell well below forecasts of a 0.7 per cent growth in real GDP. Exports.	fell for the fourth consecutive quarter. The accumulating gloom is increasingly
discouraging business investment. Consumer spending remains strong and corporate profits were at their highest since 2004. ʺThe sources of strength in the second quarter are clearly unsustainable,ʺ said Sal Gautieri, senior economist at BMO capital markets.
Canada Avoids Fall into Recession, www.FT.com, by Christopher Mason, August 30, 2008
-According to the article,_________ in_________ have contributed to Canadaʹs_________ change in real GDP.

Accepted Answer

The article states that exports fell for the fourth consecutive quarter, discouraging business investment. This, along with a first quarter slip in GDP, suggests that decreases in exports and investment have contributed to Canada's unexpected change in real GDP. Option B is incorrect as there is no mention of government spending in the article. Option C is also incorrect as the sources of strength in the second quarter are described as unsustainable, implying that increases in consumption and investment are not the cause of the unexpected change in real GDP. Option D is incorrect as exports fell in the second quarter, implying that increases in exports are not the cause of the unexpected change in real GDP.

Question 4

The following data are estimates describing Ireland?s economy in 2006 and 2007 in millions of euros, in constant prices): $$\begin{array} { l r r } 
& \mathbf { 2 0 0 6 } & \mathbf { 2 0 0 7 } \
\text { Consumption } & 84,000 & 89,000 \
\text { Government expenditure } & 24,000 & 26,000 \
\text { Investment } & 48,000 & 48,000 \
\text { Exports } & 142,000 & 151,000 \
\text { Imports } & 123,000 & 128,000 \
\text { Subsidies } & 1,800 & 1,900 \
\text { Taxes } & 500 & 500
\end{array}$$ Ireland?s real GDP in 2007 was million euros.

Accepted Answer

Real GDP is calculated as Consumption + Government Expenditure + Investment + (Exports - Imports). For 2007, this is 89,000 + 26,000 + 48,000 + (151,000 - 128,000) = 186,000 million euros.

Question 5

ʺLife expectancy is exceptionally high in Japan. Scores for political freedom and civil liberties approach those of peer countries in Europe...equality of opportunity is extremely weak. The country also possesses one of the longer working weeks.ʺ Japanʹs GDP was estimated to be $4.2 trillion purchasing power parity) and the population was 127.4 million.
ʺDriven by its attractive climate, Brazil performs substantially better on Life Satisfaction than Material Wealth. High international demand for Brazilʹs commodities and raw materials has produced a sustained economic expansion since 2004, which in turn has led to job creation, wage growth and relatively low inflation. Brazilians report that they control their own lives to a substantial degree.ʺ Brazilʹs GDP was estimated to be $1.7 trillion purchasing power parity) and 190 million in 2006.
-According to the article, we can conclude that the standard of living

Accepted Answer

The article suggests that while Japan has a higher GDP and life expectancy, Brazil performs better in terms of life satisfaction and economic growth. Therefore, other factors besides GDP and life expectancy should be considered when determining the standard of living.

Question 6

ʺAs the credit crisis unfolded over the past year, one of the few certainties in the global economy seemed to be Chinaʹs ability to plough on regardless of double-digit growth rates...The ...crisis has also focused ...on the need to update a growth model that...is still dependent on assembling goods for export without adding much value and on heavy industries that create pollution. Chinese companies have continued to find new foreign markets for their products...several other factors point to a slowing property market...production of steel, cement and air conditioners was down... Retail sales have risen by 23 per cent in each of the last two monthsʺ.
Beijingʹs Burden,
-According to the article,_________ is expected to increase and add to Chinaʹs _________component of GDP.

Accepted Answer

The article mentions that retail sales have risen by 23% in each of the last two months, which suggests an increase in consumption. This will add to China's consumption component of GDP, as indicated in the article.

Question 7

ʺGerman economic growth slowed ... Economic growth slowed to 0.3 percent from 0.5 percent. Expansion was driven by exports... and) household consumption added ...to growth. As unemployment declines and disposable incomes increase, household spending may also gain momentum.
We can conclude that the German economy

Accepted Answer

The answer of ʺGerman economic growth slowed ... Economic growth...

Question 8

ʺAs the credit crisis unfolded over the past year, one of the few certainties in the global economy seemed to be Chinaʹs ability to plough on regardless of double-digit growth rates...The ...crisis has also focused ...on the need to update a growth model that...is still dependent on assembling goods for export without adding much value and on heavy industries that create pollution. Chinese companies have continued to find new foreign markets for their products...several other factors point to a slowing property market...production of steel, cement and air conditioners was down... Retail sales have risen by 23 per cent in each of the last two monthsʺ.
Beijingʹs Burden,
-According to the article_________, can be expected to_________ this year.

Accepted Answer

The answer of ʺAs the credit crisis unfolded over the...

Question 9

The data show Argentina?s GDP using purchasing power parity) in billions of dollars. $\begin{array}{ll}
\text {year }&1990&1991&1992&1993&1994&1995&1996&1997&1998&1999&2000&2001&2002&2003&2004&2005&2006\
GDP(\$)&182&209&235&255&277&274&294&324&340&333&338&330&300&333&373&420&270
\end{array}$
 The data show that

Accepted Answer

Argentina's GDP decreased from 338 in 2000 to 330 in 2001 and further to 300 in 2002, indicating a recession during those years.

Question 10

It is estimated that in 2007, Mexico had a population of 110 million and Brazil had a population of 190 million. At the same time, Mexicoʹs GDP was $1 trillion while Brazilʹs was $1.31 trillion. These data show that

Accepted Answer

To calculate GDP per person, we divide the GDP by the population. 
Mexico's GDP per person = 1 trillion/110 million = $9090 
Brazil's GDP per person = 1.31 trillion/190 million = $6895, which is lower than Mexico's GDP per person. Therefore, option C is incorrect. Option D is also incorrect as we cannot determine the overall health of the economy based on just GDP and population data.

Question 11

ʺAs the credit crisis unfolded over the past year, one of the few certainties in the global economy seemed to be Chinaʹs ability to plough on regardless of double-digit growth rates...The ...crisis has also focused ...on the need to update a growth model that...is still dependent on assembling goods for export without adding much value and on heavy industries that create pollution. Chinese companies have continued to find new foreign markets for their products...several other factors point to a slowing property market...production of steel, cement and air conditioners was down... Retail sales have risen by 23 per cent in each of the last two monthsʺ.
Beijingʹs Burden,
-According to the article_________, are expected to contribute _________to Chinaʹs real GDP in 2008.

Accepted Answer

The article states that Chinese companies have continued to find new foreign markets for their products (exports), and retail sales have risen by 23% in each of the last two months (consumption). Therefore, exports and consumption are expected to contribute positively to China's real GDP in 2008. The passage does not provide information to suggest that investment, government spending, rental income, or any other factors are expected to contribute significantly to China's GDP in 2008.

Question 12

The following data are estimates describing Ireland?s economy in 2006 and 2007 in millions of euros, in constant prices): $$\begin{array} { l l l } 
& \mathbf { 2 0 0 6 } & \mathbf { 2 0 0 7 } \
\text { Consumption } & 84,000 & 89,000 \
\text { Government expenditure } & 24,000 & 26,000 \
\text { Investment } & 48,000 & 48,000 \
\text { Exports } & 142,000 & 151,000 \
\text { Imports } & 123,000 & 128,000 \
\text { Subsidies } & 1,800 & 1,900 \
\text { Taxes } & 500 & 500
\end{array}$$ In 2007, Ireland?s net exports was _________million euros.

Accepted Answer

Net exports are calculated as exports minus imports. For 2007, net exports = 151,000 - 128,000 = 23,000 million euros.

Question 13

The following data describe Mexico?s economy in 2007. $$\begin{array}{l}
\text { Government }\
\begin{array} { l l l } 
\text { spending } & \$ 210 \text { billion Investment } & \$ 210 \text { billion } \
\text { Exports } & \$ 272 \text { billion } \
\text { Imports } & \$ 283 \text { billion } \
\text { GDP } & 1 \text { trillion } \
\text { Population } & 110 \text { million }
\end{array}
\end{array}$$ From the data, we can conclude that _________in Mexico in 2007.

Accepted Answer

The answer of The following data describe Mexico?s economy in...

Question 14

The United Nationʹs Human Development Report 2006) ranked Norway first in its Human Development Index with GDP per person equal to $38,454. The United States , with GDP per person of $39,676, is ranked eighth. Which of the following could explain this ranking?

Accepted Answer

The Human Development Index takes into account factors like life expectancy and education, which are higher in Norway than in the United States. The question does not provide information on population growth rate or unemployment rate, and GDP per person is not the sole determining factor in the Human Development Index ranking.

Question 15

Canadaʹs economy expanded by...0.1 percent in the second quarter...further evidence that the economy has stalled...following a first quarter slip in gross domestic product. The second quarter figures fell well below forecasts of a 0.7 per cent growth in real GDP. Exports.	fell for the fourth consecutive quarter. The accumulating gloom is increasingly
discouraging business investment. Consumer spending remains strong and corporate profits were at their highest since 2004. ʺThe sources of strength in the second quarter are clearly unsustainable,ʺ said Sal Gautieri, senior economist at BMO capital markets.
Canada Avoids Fall into Recession, www.FT.com, by Christopher Mason, August 30, 2008
-According to the article,  the best description of Canadaʹs position in the business cycle is

Accepted Answer

The answer of Canadaʹs economy expanded by...0.1 percent in the...

Question 16

The following data describe France?s economy in 2008. $\begin{array}{ll}
\text { Consumption } & 234 \text { billion euros Government } \
\text { expenditure } & 93 \text { billion euros Investment }&88 \text { billion euros } \
\text { Exports } & 128 \text { billioneuros } \
\text { Imports } & 137 \text { billioneuros }
\end{array}$ From the data, we can conclude that in France

Accepted Answer

The answer of The following data describe France?s economy in...

Question 17

The data show Argentina?s GDP using purchasing power parity) in billions of dollars. $\begin{array}{ll}
\text {year }&1990&1991&1992&1993&1994&1995&1996&1997&1998&1999&2000&2001&2002&2003&2004&2005&2006\
GDP(\$)&182&209&235&255&277&274&294&324&340&333&338&330&300&333&373&420&270
\end{array}$
 The data show that

Accepted Answer

The answer of The data show Argentina?s GDP using purchasing...

Question 18

The following data show Uruguay?s GDP using purchasing power parity in billions of dollars. $\begin{array}{ll}
\text {year }&2000&2001&2002&2003&2004&2005&2006&2007&2008\
GDP(\$)&26.1&25.8&23.3&24.3&27.9&30.1&33.9&37.2&40.2
\end{array}$
 Using the data, we can conclude that

Accepted Answer

The answer of The following data show Uruguay?s GDP using...

Question 19

It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexicoʹs population was 104 million and GDP was $839 billion. Per GDP person_________ by_________
Between 2006 and 2007 in Mexico.

Accepted Answer

To calculate GDP per person, we need to divide GDP by population. In 2006, GDP per person was $839 billion / 104 million = $8052. In 2007, GDP per person was $1 trillion / 110 million = $9091. This represents an increase of $1039, or approximately 13%. Therefore, the best choice is C, which states that GDP per person increased by $1038.

Question 20

ʺLife expectancy is exceptionally high in Japan. Scores for political freedom and civil liberties approach those of peer countries in Europe...equality of opportunity is extremely weak. The country also possesses one of the longer working weeks.ʺ Japanʹs GDP was estimated to be $4.2 trillion purchasing power parity) and the population was 127.4 million.
ʺDriven by its attractive climate, Brazil performs substantially better on Life Satisfaction than Material Wealth. High international demand for Brazilʹs commodities and raw materials has produced a sustained economic expansion since 2004, which in turn has led to job creation, wage growth and relatively low inflation. Brazilians report that they control their own lives to a substantial degree.ʺ Brazilʹs GDP was estimated to be $1.7 trillion purchasing power parity) and 190 million in 2006.
-According to the information, Japanʹs real GDP per person

Accepted Answer

The passage states that Japan's GDP was estimated to be $4.2 trillion (purchasing power parity), and the population was 127.4 million. Therefore, dividing the GDP by the population gives us a real GDP per person of approximately $33,000. Option A is incorrect as the passage doesn't provide any information to suggest that political freedom and life expectancy affect GDP growth. Option C is incorrect as the passage doesn't state that economic well-being is higher in Japan. Option D is incorrect as the passage provides the real GDP per person for both countries, and Japan's real GDP per person is higher than Brazil's, which means that the standard of living is higher in Japan.

Quiz 4: Measuring Gdp and Economic Growth

The following data show Uruguay?s GDP using purchasing power parity in billions of dollars. $\begin{array}{ll}\text {year }&2000&2001&2002&2003&2004&2005&2006&2007&2008\\GDP(\$) &26.1&25.8&23.3&24.3&27.9&30.1&33.9&37.2&40.2\end{array}$ Using the data, we can conclude that

It is estimated that in 2007, Mexico had a population of 110 million and Brazil had a population of 190 million. At the same time, Mexicoʹs GDP was $1 trillion while Brazilʹs was $1.31 trillion. These data show that

The United Nationʹs Human Development Report 2006) ranked Norway first in its Human Development Index with GDP per person equal to $38,454. The United States , with GDP per person of $39,676, is ranked eighth. Which of the following could explain this ranking?

The following data show Uruguay?s GDP using purchasing power parity in billions of dollars. $\begin{array}{ll}\text {year }&2000&2001&2002&2003&2004&2005&2006&2007&2008\\GDP(\$) &26.1&25.8&23.3&24.3&27.9&30.1&33.9&37.2&40.2\end{array}$ Using the data, we can conclude that

It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexicoʹs population was 104 million and GDP was $839 billion. Per GDP person_ by_ Between 2006 and 2007 in Mexico.

Quiz 4: Measuring Gdp and Economic Growth

It is estimated that in 2007, Mexico had a population of 110 million and Brazil had a population of 190 million. At the same time, Mexicoʹs GDP was $1 trillion while Brazilʹs was $1.31 trillion. These data show that

The United Nationʹs Human Development Report 2006) ranked Norway first in its Human Development Index with GDP per person equal to $38,454. The United States , with GDP per person of $39,676, is ranked eighth. Which of the following could explain this ranking?

It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexicoʹs population was 104 million and GDP was $839 billion. Per GDP person_________ by_________ Between 2006 and 2007 in Mexico.

It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexicoʹs population was 104 million and GDP was $839 billion. Per GDP person_ by_ Between 2006 and 2007 in Mexico.