Test-Bank-for-Macroeconomics,-Fourth-Canadian-Edition,-4-E-4th-Edition-Stephen-D.-Williamson.Macroeconomics, Cdn. 4e (Williamson) Chapter 2 Measurement 1)
... [Show More] Gross domestic product is defined as A) the value of all goods produced in the economy in a given time period within the borders of Canada. B) the market value of all goods and services produced in the economy during a given time period within the borders of Canada. C) the total market value of the final goods and services produced during a given time period within the borders of Canada. D) the total market value of all the intermediate goods and services produced in the economy for a given time period within the borders of Canada. E) the market value of all goods and services produced by Canadian residents domestically and abroad. Answer: A Type: MC Page Ref: P. 32-33 2) GDP is published by Statistics Canada as part of the A) GDP Statistical Review. B) Labour Force Statistics. C) National Income and Expenditure Accounts (NIEA). D) Survey of Current Business. E) Current Population Survey. Answer: C Type: MC Page Ref: P. 33 3) The three approaches to measuring GDP are called the A) accounting approach, the income approach, and the expenditure approach. B) product approach, the cost approach, and the expenditure approach. C) product approach, the income approach, and the expenditure approach. D) accounting approach, the statistical approach, and the income approach. E) accounting approach, the statistical approach, and the product approach. Answer: C Type: MC Page Ref: P. 33 4) Approaches to measuring GDP include A) cost approach. B) GDP approach. C) income approach. D) trade approach. E) value-subtracted approach. Answer: C Type: MC Page Ref: P. 33 1 EC 390 Full file at http://testbanksolutions.org/Test-Bank-for-Macroeconomics,-Fourth-Canadian-Edition,-4-E-4thEdition-Stephen-D.-Williamson 5) Acme Steel Co. produces 1000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's contribution to GDP is A) $15,000. B) $20,000. C) $30,000. D) $45,000. E) $60,000. Answer: A Type: MC Page Ref: P. 33 6) Intermediate goods are A) irrelevant in the overall economy. B) purchased by consumers. C) that are produced and used as inputs into the production process. D) sold to foreigners. E) are not a consumption good. Answer: C Type: MC Page Ref: P. 33 7) Jim's Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim's profit is A) $100. B) $200. C) $400. D) $800. E) $1000. Answer: A Type: MC Page Ref: P. 33 8) Acme Steel Co. produces 1000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's profit is A) $0. B) $2,000. C) $3,000. D) $15,000. E) $25,000. Answer: C Type: MC Page Ref: P. 33 2 Full file at http://testbanksolutions.org/Test-Bank-for-Macroeconomics,-Fourth-Canadian-Edition,-4-E-4thEdition-Stephen-D.-Williamson 9) Pamela's bakery produces 500 loaves of bread in a given year. Pamela pays $100 for flour and yeast, pays $600 in wages, pays $50 in interest on an existing loan, and pays $100 in taxes to the government. One of Pamela's bread slicing machines, which cost $75 each, wears out over the course of the year and must be scrapped. Pamela's profit for the year equals $75. Pamela's bread, therefore, sells for A) $0.50 per loaf. B) $1.00 per loaf. C) $2.00 per loaf. D) $1.50 per loaf. E) cannot tell, insufficient information. Answer: C Type: MC Page Ref: P. 33-34 10) The value of a producer's output minus the value of all intermediate goods used in the production of that output is called the producer's A) net output. B) accounting profit. C) value added. D) profit margin. E) costs of production. Answer: C Type: MC Page Ref: P. 35 11) Value added is equal to the value of a firm's production minus A) all of its costs of production. B) labour costs. C) investment expenditures. D) intermediate goods used in production. E) costs of production. Answer: D Type: MC Page Ref: P. 35 12) Suppose that the government collects $3 million in taxes, pays $2 million in Employment Insurance benefits, pays $0.5 million in interest on the national debt, and pays workers $1 million to sit at their desks and work as little as possible. The government's contribution to GDP is A) $0. B) $1 million. C) $1.5 million. D) $3 million. E) $3.5 million. Answer: B Type: MC Page Ref: P. 35-36 13) The product approach to calculating GDP values government production at A) market prices. B) its cost of production. C) its estimated value to society. D) the total amount of taxes it collects. E) its intermediate costs. 3 Full file at http://testbanksolutions.org/Test-Bank-for-Macroeconomics,-Fourth-Canadian-Edition,-4-E-4thEdition-Stephen-D.-Williamson Answer: B Type: MC Page Ref: P. 35 14) The expenditure approach is calculated as A) C + I + G. B) C + I + X. C) C + I + G + NX. D) C + I + NX. E) the value approach. Answer: C Type: MC Page Ref: P. 35 15) The expenditure approach to calculating GDP includes A) consumption. B) intermediate goods. C) wage income. D) net factor payments. E) taxes. Answer: A Type: MC Page Ref: P. 35 16) Jim's Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim's contribution to GDP is A) $900. B) $1000. C) $1100. D) $1800. E) $2000. Answer: C Type: MC Page Ref: P. 35 [Show Less]