Question 1

In 2008, how large were Canadian government purchases of goods and services?

Accepted Answer

The answer of In 2008, how large were Canadian government...

Question 2

What is the difference between nominal and real GDP?

Accepted Answer

Nominal GDP calculates the value of goods and services produced in a given year at current prices, whereas real GDP calculates the value of goods and services produced in a given year at constant prices. The difference between the two is that nominal GDP does not take into account changes in prices over time, therefore it does not adjust for inflation or deflation. Real GDP, on the other hand, adjusts for changes in prices and provides a more accurate measure of economic growth.

Question 3

-What can we conclude from this information?

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-What can we conclude from this information?
...

Question 4

In 2008 what was, approximately, Canadian GDP?

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Question 5

-Suppose GDP consists of wheat and rice. In 2006, 20 bushels of wheat are sold at $4 per bushel, and 10 bushels of rice are sold at $2 per bushel. If the price of wheat was $2 per bushel and the price of rice was $1 per bushel in 2001, the base year, what can we conclude?

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-Suppose GDP consists of wheat and rice....

Question 6

Which of the following is included in the investment component of GDP?

Accepted Answer

Changes in inventory are considered part of the investment component of GDP as they represent goods produced but not yet sold.

Question 7

In a given year, an economy has consumption of $4000, investment of $2000, government purchases of $1500, exports of $500, imports of $600, taxes of $1200, transfer payments of $400, and depreciation of $300. What is the GDP?

Accepted Answer

GDP is calculated as the sum of consumption, investment, government purchases, and net exports (exports minus imports). So, GDP = $4000 + $2000 + $1500 + ($500 - $600) = $7400.

Question 8

In 2008, what size was Canadian investment?

Accepted Answer

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Question 9

Which of these would be included in Canadian consumption?

Accepted Answer

Canadian consumption includes purchases made by Canadian residents, regardless of where the product was manufactured.

Answer: C
 Buying stock in a Canadian corporation is considered part of Canadian consumption.

Note: B and D are not considered part of Canadian consumption as they do not involve a purchase by a Canadian resident.

Question 10

What would be the cause of total spending rising from one year to the next?

Accepted Answer

Total spending can increase due to a variety of factors such as increased production levels or increased prices, or a combination of both. Therefore, choice C is the most comprehensive and accurate answer. However, employment and productivity (option D) can also be contributing factors to total spending growth.

Question 11

In 2008, how large were Canadian government purchases of goods and services?

Accepted Answer

Canadian government purchases of goods and services are typically smaller than both consumption and investment.

Question 12

In Canada in 2008, what percentage of GDP was consumption?

Accepted Answer

In 2008, consumption accounted for 56% of Canada's GDP.

Question 13

If real GDP doubles and the GDP deflator doubles, what will happen to nominal GDP?

Accepted Answer

Nominal GDP is calculated by multiplying real GDP by the GDP deflator. If both double, the nominal GDP will quadruple (2 times 2 equals 4).

Question 14

Which of these will increase Canadian net exports?

Accepted Answer

When a US resident buys a Blackberry manufactured in Canada, it increases the demand for Canadian exports and therefore increases net exports.

Question 15

Which of the following is included in Canadian GDP?

Accepted Answer

Canadian exports of goods and services are included in the calculation of Canadian GDP as they represent economic activity within Canada's borders. The other options, CPP/QPP payments and the sale of used goods, do not represent current economic activity and are not included in GDP. Canadian imports of goods and services are also not included in Canadian GDP as they represent economic activity in other countries.

Question 16

Which of the following best describes real GDP?

Accepted Answer

Real GDP evaluates current production at the prices that prevailed in some specific year in the past, which accounts for changes in the price level over time and allows for comparisons of output over different time periods.

Question 17

In 2008 what was, approximately, GDP per person in Canada?

Accepted Answer

According to World Bank data, in 2008, Canada's GDP per capita was approximately $48,000 USD.

Question 18

Which of the following is included in the consumption component of GDP?

Accepted Answer

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Question 19

Which of the following is included in the investment component of GDP?

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Question 20

In 2008, what were Canadian net exports?

Accepted Answer

The answer of In 2008, what were Canadian net exports?
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Quiz 5: Measuring a Nations Income

In 2008, how large were Canadian government purchases of goods and services?

What is the difference between nominal and real GDP?

-What can we conclude from this information?

In 2008 what was, approximately, Canadian GDP?

-Suppose GDP consists of wheat and rice. In 2006, 20 bushels of wheat are sold at $4 per bushel, and 10 bushels of rice are sold at $2 per bushel. If the price of wheat was $2 per bushel and the price of rice was $1 per bushel in 2001, the base year, what can we conclude?

Which of the following is included in the investment component of GDP?

In a given year, an economy has consumption of $4000, investment of $2000, government purchases of $1500, exports of $500, imports of $600, taxes of $1200, transfer payments of $400, and depreciation of $300. What is the GDP?

In 2008, what size was Canadian investment?

Which of these would be included in Canadian consumption?

What would be the cause of total spending rising from one year to the next?

In 2008, how large were Canadian government purchases of goods and services?

In Canada in 2008, what percentage of GDP was consumption?

If real GDP doubles and the GDP deflator doubles, what will happen to nominal GDP?

Which of these will increase Canadian net exports?

Which of the following is included in Canadian GDP?

Which of the following best describes real GDP?

In 2008 what was, approximately, GDP per person in Canada?

Which of the following is included in the consumption component of GDP?

Which of the following is included in the investment component of GDP?

In 2008, what were Canadian net exports?