Question 1

According to the article, ________ can be expected to ________ this year.

Accepted Answer

The article mentions that the weak Australian dollar and strong global demand are likely to boost exports, leading to an increase in exports this year.

Question 2

What we produce during our working time is ________ as part of GDP and the enjoyment we gain from our leisure time is ________ as part of GDP.

Accepted Answer

What we produce during our working time is included as part of GDP because it adds value to the economy. However, the enjoyment we gain from our leisure time is not included as part of GDP because it is not a tangible good or service that contributes to economic output.

Question 3

The data show Argentina's GDP (using purchasing power parity)in billions of dollars.

The data show that

Accepted Answer

The data show a sharp drop in Argentina's GDP in 2001 and 2002, indicating a recession during those years. There is no clear evidence of a recession from 2004 through 2006 or of a peak in 1996. While it is true that GDP per person increased substantially between 1990 and 2006, this is not the most significant trend illustrated by the data.

Question 4

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, Mexico's GDP was $1 trillion while Brazil's was $1.31 trillion. These data show that

Accepted Answer

The answer of It is estimated that in 2007, Mexico...

Question 5

According to the article, the best description of Canada's position in the business cycle is

Accepted Answer

The answer of According to the article, the best description...

Question 6

The following data describe Mexico's economy in 2007.
Government spending	$210 billion
Investment	$210 billion
Exports	$272 billion
Imports	$283 billion
GDP	1 trillion
Population	110 million
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 7

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euros, in constant prices):
2006	2007
Consumption	84,000	89,000
Government expenditure	24,000	26,000
Investment	48,000	48,000
Exports	142,000	151,000
Imports	123,000	128,000
Subsidies	1,800	1,900
Taxes	500	500
Ireland's real GDP in 2007 was ________ million euros.

Accepted Answer

The answer of The following data are estimates describing Ireland's...

Question 8

Which of the following statements about the comparison between GDP in China and in the United States is CORRECT?

Accepted Answer

The answer of Which of the following statements about the...

Question 9

"Life 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." Japan's GDP was estimated to be $4.2 trillion (purchasing power parity) and the population was 127.4 million.
"Driven by its attractive climate, Brazil performs substantially better on Life Satisfaction than Material Wealth. High international demand for Brazil's 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." Brazil's GDP was estimated to be $1.7 trillion (purchasing power parity) and 190 million in 2006.
www.prosperity.com
-According to the article, we can conclude that the standard of living

Accepted Answer

While Japan may have a higher per capita real GDP, other factors such as Brazilian citizens' satisfaction with their lives and strong economic growth should also be taken into consideration when determining the standard of living. Therefore, option D is the best choice as it takes into account multiple factors that contribute to economic well-being.

Question 10

The following data describe France's economy in 2008.
Consumption	234 billion euros
Government expenditure	93 billion euros
Investment	88 billion euros
Exports	128 billion euros
Imports	137 billion euros
From the data, we can conclude that in France

Accepted Answer

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

Question 11

Which of the following is NOT a reason that real GDP is a poor measure of a nation's economic welfare?

Accepted Answer

Real GDP does not account for household production at all, rather than overvaluing it. It measures the value of all final goods and services produced within a country's borders in a given time period but does not include non-market transactions such as the value of services provided within the household.

Question 12

"Life 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." Japan's GDP was estimated to be $4.2 trillion (purchasing power parity) and the population was 127.4 million.
"Driven by its attractive climate, Brazil performs substantially better on Life Satisfaction than Material Wealth. High international demand for Brazil's 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." Brazil's GDP was estimated to be $1.7 trillion (purchasing power parity) and 190 million in 2006.
www.prosperity.com
-According to the information, Japan's real GDP per person

Accepted Answer

The information provides a GDP estimate for both countries, but only gives a specific number for Japan's population of 127.4 million. Therefore, we can calculate Japan's real GDP per person by dividing the estimated GDP by the population, which gives us $33,000. The information does not allow us to directly compare the standard of living between Japan and Brazil, as there are many other factors to consider beyond just GDP.

Question 13

It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person ________ by ________ between 2006 and 2007 in Mexico.

Accepted Answer

The GDP per capita in 2006 was $839 billion / 104 million = $8076.92. In 2007, it was $1 trillion / 110 million = $9090.91. The increase in GDP per capita from 2006 to 2007 is $9090.91 - $8076.92 = $1013.99, which rounds to $1038 when considering significant figures and rounding.

Question 14

According to the article, ________ in ________ have contributed to Canada's ________ change in real GDP.

Accepted Answer

The article mentions that exports fell for the fourth consecutive quarter and the accumulating gloom is discouraging business investment, which contributed to an unexpected change in real GDP, as the figures fell well below forecasts.

Question 15

Pollution is a by-product of some production processes, so on this count real GDP as measured

Accepted Answer

Real GDP measures the value of goods and services produced in an economy, but it does not take into account negative externalities such as pollution. As a result, real GDP tends to overstate economic welfare by not accounting for the costs of pollution and other negative externalities.

Question 16

According to the article, ________ are expected to contribute ________ to China's real GDP in 2008.

Accepted Answer

The article states that both exports and consumption are expected to contribute positively to China's real GDP in 2008.

Question 17

"Life 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." Japan's GDP was estimated to be $4.2 trillion (purchasing power parity) and the population was 127.4 million.
"Driven by its attractive climate, Brazil performs substantially better on Life Satisfaction than Material Wealth. High international demand for Brazil's 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." Brazil's GDP was estimated to be $1.7 trillion (purchasing power parity) and 190 million in 2006.
www.prosperity.com
-"German 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.
www.bloomberg.com, August 23, 2007
We can conclude that the German economy

Accepted Answer

The article mentions that German economic growth slowed and household consumption added to growth. This suggests that there has been a decline in investment or government spending, which has led to slower economic growth. Therefore, choice C is the correct answer. Choices A, B, and D are incorrect based on the information provided.

Question 18

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euros, in constant prices):
2006	2007
Consumption	84,000	89,000
Government expenditure	24,000	26,000
Investment	48,000	48,000
Exports	142,000	151,000
Imports	123,000	128,000
Subsidies	1,800	1,900
Taxes	500	500
Which of the following is TRUE regarding Ireland's economy?

Accepted Answer

GDP for 2007 can be calculated using the formula: GDP = Consumption + Government expenditure + Investment + (Exports - Imports) + (Taxes - Subsidies). Plugging in the numbers for 2007 gives: 89,000 + 26,000 + 48,000 + (151,000 - 128,000) + (500 - 1,900) = 184,600 million euros. Consumption in 2007 was 89,000 million euros, which is approximately 48.2% of the GDP (89,000 / 184,600 ≈ 0.482), thus making statement D true.

Question 19

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euros, in constant prices):
2006	2007
Consumption	84,000	89,000
Government expenditure	24,000	26,000
Investment	48,000	48,000
Exports	142,000	151,000
Imports	123,000	128,000
Subsidies	1,800	1,900
Taxes	500	500
In 2007, Ireland's net exports was ________ million euros.

Accepted Answer

Net exports are calculated as exports minus imports. For 2007, Ireland's exports were 151,000 million euros and imports were 128,000 million euros. Therefore, net exports = 151,000 - 128,000 = 23,000 million euros.

Question 20

According to the article, ________ is expected to increase and add to China's ________ component of GDP.

Accepted Answer

The article states that retail sales are expected to increase, which would add to China's consumption component of GDP.

Quiz 4: Measuring GDP and Economic Growth

According to the article, can be expected to this year.

What we produce during our working time is as part of GDP and the enjoyment we gain from our leisure time is as part of GDP.

The data show Argentina's GDP (using purchasing power parity) in billions of dollars. The data show 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, Mexico's GDP was $1 trillion while Brazil's was $1.31 trillion. These data show that

According to the article, the best description of Canada's position in the business cycle is

The following data describe Mexico's economy in 2007. Government spending $210 billion Investment $210 billion Exports $272 billion Imports $283 billion GDP 1 trillion Population 110 million From the data, we can conclude that ________ in Mexico in 2007.

Which of the following statements about the comparison between GDP in China and in the United States is CORRECT?

The following data describe France's economy in 2008. Consumption 234 billion euros Government expenditure 93 billion euros Investment 88 billion euros Exports 128 billion euros Imports 137 billion euros From the data, we can conclude that in France

Which of the following is NOT a reason that real GDP is a poor measure of a nation's economic welfare?

It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person by between 2006 and 2007 in Mexico.

According to the article, in have contributed to Canada's change in real GDP.

Pollution is a by-product of some production processes, so on this count real GDP as measured

According to the article, are expected to contribute to China's real GDP in 2008.

According to the article, is expected to increase and add to China's component of GDP.