Question 1

Despite some problems,higher real GDP per person does imply higher living standards,because it tends to be positively associated with
A) crime,pollution,and economic inequality.
B) better education,health,and life expectancy.
C) poverty,depletion of non-renewable resources,and congestion.
D) unemployment,availability of goods and services,and better education.
E) the total quantity of goods and services availablE.

Accepted Answer

Higher real GDP per person tends to be positively associated with better education, health, and life expectancy, which are indicators of higher living standards. A, C, and D are incorrect because crime, pollution, economic inequality, poverty, depletion of non-renewable resources, congestion, unemployment, and availability of goods and services can be either positively or negatively associated with higher real GDP per person depending on the specific circumstances of each country. E is also incorrect because the total quantity of goods and services available may not necessarily reflect the quality of life of individuals.

Question 2

Life expectancy is higher in ________ compared to ________.
A) the OECD countries;the least developed countries
B) the least developed countries;the OECD countries
C) the developing countries;the OECD countries
D) the least developed countries;Canada
E) the developing countries;Canada

Accepted Answer

OECD countries have better healthcare systems, higher standards of living, and more access to education and resources compared to the least developed countries. These factors contribute to a longer life expectancy in OECD countries.

Question 3

Real GDP measures ________ but not ________.
A) output;well-being
B) well-being;output
C) output;goods and services produced
D) goods and services produced;output
E) well-being;goods and services produced

Accepted Answer

Real GDP measures the output of goods and services produced in an economy but does not measure overall well-being or quality of life. It only provides a measure of economic activity and the value of goods and services produced in a given period.

Question 4

Over the 1992-2010 period,Canadian gross national product was __________ Canadian gross domestic product.
A) much greater than
B) slightly greater than
C) the same as
D) slightly less than
E) much less than

Accepted Answer

The answer of Over the 1992-2010 period,Canadian gross national product...

Question 5

The fact that gross national product is less than gross domestic product in Canada indicates that
A) the value of profits,dividends,and interest flowing in to Canada exceeds the value flowing out.
B) the value of profits,dividends,and interest flowing out of Canada exceeds the value flowing in.
C) real GDP is less than nominal GDP.
D) net domestic product exceeds gross domestic product.
E) income is falling in Canada.

Accepted Answer

Gross domestic product (GDP) measures the value of all final goods and services produced within a country's borders, regardless of the nationality of the producers. Gross national product (GNP), on the other hand, measures the value of all final goods and services produced by a country's residents, regardless of their location. If a country's GNP is less than its GDP, it means that more profits, dividends, and interest are flowing out of the country than are flowing in, which is the case described in choice B.

Question 6

A proposal to relax environmental regulations must
A) be assessed by comparing costs and benefits.
B) be assessed by determining the amount by which GDP would therefore increase.
C) be assessed by determining the amount by which GDP would therefore decrease.
D) never be considered.
E) always be approved.

Accepted Answer

Any proposal to relax environmental regulations must go through a thorough cost-benefit analysis to determine the potential risks and benefits associated with the decision. This would help inform policymakers about whether the proposal would lead to an overall net gain or loss to society. Simply looking at changes in GDP alone would be insufficient as it does not take into account externalities such as environmental degradation, which can have severe and long-lasting impacts on communities and the economy.

Question 7

The labour force equals the number of people
A) employed.
B) unemployed.
C) aged of 15 years and older.
D) employed and unemployed.
E) employed,unemployed or counted as discouraged workers.

Accepted Answer

The labour force includes both employed and unemployed individuals who are able and willing to work, therefore the correct answer is D - employed and unemployed. Option A only includes employed individuals, Option B only includes unemployed individuals, Option C includes individuals aged 15 years and older but does not specify if they are part of the labour force, and Option E includes discouraged workers who are no longer actively seeking employment and therefore may not be part of the labour force.

Question 8

The index of economic well-being includes all of the following EXCEPT
A) per-capita consumption.
B) societal accumulation of stocks of productive resources.
C) income distribution.
D) economic security.
E) exports to developing countries.

Accepted Answer

The index of economic well-being includes per-capita consumption, societal accumulation of stocks of productive resources, income distribution, and economic security, but does not include exports to developing countries.

Question 9

Increasing the length of the workweek in Canada would most likely result in ________ in Canadian GDP and ________ in the well-being of the average Canadian worker.
A) an increase;an increase
B) an increase;a decrease
C) no change;no change
D) a decrease;an increase
E) a decrease;a decrease

Accepted Answer

Increasing the length of the workweek would likely lead to higher GDP due to more hours worked, but it could decrease the well-being of workers due to increased stress and less leisure time.

Question 10

Arguments against replacing GDP with a broader measure of living standards include all of the following EXCEPT
A) most users of GDP accounts would not like to see them replaced by something else.
B) a broader measure of living standards would require subjective valuations of many difficult-to-measure activities.
C) GDP should co-exist with broader measures of living standards,but should not be replaced by them.
D) changes to the definition of output in the GDP accounts could not be made in isolation without also making changes to the definition of employment,for the sake of consistency.
E) replacing GDP with a broad measure of living standards would call for input from non-economists.

Accepted Answer

The answer of Arguments against replacing GDP with a broader...

Question 11

Gross national product is the
A) market value of final goods and services produced in a country.
B) market value of final goods and services produced by factors of production owned by the residents of a country.
C) market value of intermediate goods and services produced in a country.
D) market value of intermediate goods and services produced by factors of production owned by the residents of a country.
E) cost of final goods and services produced by factors of production owned by the residents of a country.

Accepted Answer

Gross national product (GNP) is the market value of final goods and services produced by factors of production owned by the residents of a country. It includes the production of domestically owned firms and production by nationals or citizens abroad, but it does not include foreign-owned firms within the country. Choice A refers to gross domestic product (GDP) rather than GNP. Choice C and D refer to intermediate goods and services, which are not included in GNP. Choice E is not an accurate description of GNP.

Question 12

In high-income countries,female youths are ________ male youths to be enrolled in secondary education,and in the less developed countries,female youths are ________ male youths to be enrolled in secondary education.
A) more likely than;more likely than
B) more likely than;less likely than
C) as likely as;as likely as
D) as likely as;less likely than
E) less likely than;as likely as

Accepted Answer

The answer of In high-income countries,female youths are ________ male...

Question 13

Which of the following would be included in Canadian gross national product,but NOT in Canadian gross domestic product?
A) The wages paid to American actors filming a TV show in British Columbia.
B) The wages paid to Canadian welders working at a Japanese-owned automobile factory in Quebec.
C) The profits from a Canadian-owned tourism company located in Nova Scotia.
D) The profits from a U.S.-owned automobile factory in Ontario.
E) The profits from a Canadian-owned food-processing factory in Michigan.

Accepted Answer

Gross National Product (GNP) includes the value of goods and services produced by a country's residents, regardless of where they are located. Therefore, profits from a Canadian-owned factory in Michigan would be included in Canada's GNP but not in its GDP, as GDP only accounts for production within the country's borders.

Question 14

Life expectancy is ________ and the probability at birth of surviving to age 65 is ________ in countries with ________ GDP per capita.
A) low;low;high
B) high;high;low
C) high;high;high
D) low;high;low
E) high;low;high

Accepted Answer

Countries with high GDP per capita typically have better healthcare, nutrition, and living conditions, leading to higher life expectancy and a higher probability of surviving to age 65.

Question 15

Although GDP is not the same as economic well-being,high levels of GDP are positively correlated with all of the following EXCEPT
A) longer life expectancies.
B) higher rates of literacy.
C) higher material standards of living.
D) better health.
E) higher rates of infant mortality.

Accepted Answer

Higher rates of GDP are usually associated with lower rates of infant mortality.

Question 16

Increasing the production and sale of Canada's natural resources will ________ GDP and ________ the value of the resources.
A) increase;increase
B) increase;decrease
C) increase;not change
D) not change;increase
E) decrease;decrease

Accepted Answer

Increasing the production and sale of natural resources will increase GDP due to higher economic activity. However, it may decrease the value of the resources due to increased supply, which can lead to lower prices.

Question 17

Despite some limitations,________ remains the best available indicator of living standards because it tends to be positively associated with _______________.
A) real GDP;better education,health and life expectancy
B) real GDP per person;crime,pollution and income inequality
C) real GDP per person;better education,health and life expectancy
D) nominal GDP;better education,health and life expectancy
E) nominal GDP per person;better education,health and life expectancy

Accepted Answer

Real GDP per person is the best available indicator of living standards because it tends to be positively associated with better education, health, and life expectancy. This is because higher real GDP per person means higher income, which can lead to better access to education, healthcare, and resources for a longer and healthier life. Option A is similar to option C but uses the term 'real GDP' rather than 'real GDP per person', which is not as accurate for measuring individual living standards. Options B, D, and E are incorrect as they either use nominal GDP or suggest negative associations with living standards.

Question 18

Real GDP per capita is positively associated with all of the following EXCEPT
A) more and better goods and services.
B) better health and life expectancies.
C) better education.
D) higher net exports.
E) a higher standard of living.

Accepted Answer

Real GDP per capita is not directly associated with higher net exports, as net exports depend on both imports and exports, which can be influenced by other factors such as government policies, trade agreements, and global economic conditions. However, higher real GDP per capita can indirectly lead to higher net exports if it reflects an increase in production and competitiveness of domestic goods and services in global markets.

Question 19

Which of the following would be included in Canadian gross domestic product,but NOT in Canadian gross national product?
A) The wages paid to Canadian actors working in the film industry in California.
B) The wages paid to Canadian welders working at a Japanese-owned automobile factory in Quebec.
C) The profits from a Canadian-owned tourism company located in Nova Scotia.
D) The profits from a U.S.-owned automobile factory in Ontario.
E) The profits from a Canadian-owned food-processing factory in Michigan.

Accepted Answer

Gross Domestic Product (GDP) includes all economic activities within a country's borders, regardless of who owns the resources. Therefore, the profits from a U.S.-owned automobile factory in Ontario would be included in Canada's GDP but not in its Gross National Product (GNP), which includes the economic activities of Canadian residents and businesses, regardless of location.

Question 20

Countries with high real GDP per capita tend to have ______ infant mortality rates and ______ literacy rates than countries with low real GDP per capita.
A) higher;higher
B) higher;lower
C) lower;higher
D) lower;lower
E) equivalent;lower

Accepted Answer

Countries with high real GDP per capita generally have better healthcare systems and educational opportunities, leading to lower infant mortality rates and higher literacy rates compared to countries with low real GDP per capita.

Quiz 5: Spending and Output in the Short Run

Despite some problems,higher real GDP per person does imply higher living standards,because it tends to be positively associated with

Life expectancy is higher in compared to .

Real GDP measures but not .

Over the 1992-2010 period,Canadian gross national product was __________ Canadian gross domestic product.

The fact that gross national product is less than gross domestic product in Canada indicates that

A proposal to relax environmental regulations must

The labour force equals the number of people

The index of economic well-being includes all of the following EXCEPT

Increasing the length of the workweek in Canada would most likely result in in Canadian GDP and in the well-being of the average Canadian worker.

Arguments against replacing GDP with a broader measure of living standards include all of the following EXCEPT

Gross national product is the

In high-income countries,female youths are male youths to be enrolled in secondary education,and in the less developed countries,female youths are male youths to be enrolled in secondary education.

Which of the following would be included in Canadian gross national product,but NOT in Canadian gross domestic product?

Life expectancy is and the probability at birth of surviving to age 65 is in countries with GDP per capita.

Although GDP is not the same as economic well-being,high levels of GDP are positively correlated with all of the following EXCEPT

Increasing the production and sale of Canada's natural resources will GDP and the value of the resources.

Despite some limitations, remains the best available indicator of living standards because it tends to be positively associated with _______.

Real GDP per capita is positively associated with all of the following EXCEPT

Which of the following would be included in Canadian gross domestic product,but NOT in Canadian gross national product?

Countries with high real GDP per capita tend to have infant mortality rates and literacy rates than countries with low real GDP per capita.