Question 1

In a given year, an economy has consumption of $6000, investment of $4000, government purchases of $3000, exports of $1500, and imports of $500. What is the GDP?

Accepted Answer

GDP is calculated as the sum of consumption, investment, government purchases, and net exports (exports minus imports). Therefore, GDP = $6000 (consumption) + $4000 (investment) + $3000 (government purchases) + ($1500 - $500) (net exports) = $14,000.

Question 2

In 2018, what size was Canadian investment?

Accepted Answer

The answer of In 2018, what size was Canadian investment?
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Question 3

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

Accepted Answer

The answer of Which of the following is included in...

Question 4

Which example would be included in Canadian consumption?

Accepted Answer

Canadian consumption refers to the purchases made by Canadian residents, regardless of where the product or service was produced. Therefore, a Canadian resident buying a car manufactured in Brazil would be included in Canadian consumption.

Question 5

In 2018, 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 6

In Canada in 2018, what was the approximate amount of consumption per person?

Accepted Answer

According to Statistics Canada, the approximate amount of consumption per person in Canada in 2018 was $35,423. Therefore, the best choice is B.

Question 7

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

Accepted Answer

The investment component of GDP includes purchases of new houses, as it is considered investment in fixed assets. Purchases of previously owned homes (A) are not included because it is not considered investment, but rather a transfer of assets. Similarly, purchases of government bonds (B) are not included because they are considered financial investments, not investments in fixed assets. Purchases of new cars (C) are also not included in the investment component of GDP, but rather in the consumption component.

Question 8

In a given year, an economy has consumption of $8000, investment of $6000, government purchases of $5500, exports of $3500, and imports of $2000, What is the GDP?

Accepted Answer

GDP = C + I + G + NX
GDP = $8000 + $6000 + $5500 + ($3500 - $2000)
GDP = $21,000

Question 9

With respect to GDP, how is unemployment compensation treated?

Accepted Answer

Unemployment compensation is a transfer payment, which means it is a payment made by the government that does not involve any exchange of goods and services. It is not considered a part of GDP because it does not represent income earned from productive activity.

Question 10

In Canada in 2018, what percentage of GDP was consumption?

Accepted Answer

According to the World Bank, in 2018, household final consumption expenditure accounted for approximately 58% of Canada's GDP.

Question 11

With respect to GDP, how are transfer payments treated?

Accepted Answer

Transfer payments are not payments for currently produced goods or services, and thus are not included in GDP.

Question 12

Which example will increase Canadian net exports?

Accepted Answer

When a resident of another country buys Canadian products or services, it increases Canadian net exports. In this case, a U.S. resident buying insulin produced in Canada counts as an export for Canada, and therefore increases Canadian net exports. The other examples do not involve exports, as they either involve a Canadian buying foreign goods (A, C, D) or buying shares (D).

Question 13

In 2018, how large were Canadian government purchases of goods and services?

Accepted Answer

In 2018, Canadian government purchases of goods and services amounted to 21 percent of GDP. This includes spending by all levels of government on goods and services that directly contribute to the economy.

Question 14

Which of the following is included in Canadian GDP?

Accepted Answer

Canadian exports of goods and services are included in Canadian GDP as it represents the value of new production that is added to the economy. The other options do not represent new production or value added.

Question 15

What was the approximate Canadian GDP in 2018?

Accepted Answer

The answer of What was the approximate Canadian GDP in...

Question 16

In a given year, an economy has consumption of $6000, investment of $4000, government purchases of $3500, exports of $1500, imports of $1600, taxes of $1200, transfer payments of $1400, and depreciation of $1300. What is the GDP?

Accepted Answer

GDP is calculated as the sum of consumption, investment, government purchases, and net exports (exports minus imports). In this case, GDP = $6000 (consumption) + $4000 (investment) + $3500 (government purchases) + ($1500 - $1600) (net exports) = $13,400. Taxes, transfer payments, and depreciation are not included in the GDP calculation.

Question 17

What was the approximate GDP per person in Canada in 2018?

Accepted Answer

According to data from the World Bank, Canada's GDP per capita in 2018 was approximately $60,000.

Question 18

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

Accepted Answer

Purchases of foreign goods and services are included in the consumption component of GDP as imports, which are subtracted from total GDP calculations.

Question 19

In 2018, what were Canadian net exports?

Accepted Answer

In 2018, Canadian net exports were negative and about 2 percent of GDP, indicating that Canada imported more goods and services than it exported.

Question 20

With respect to GDP, how are welfare payments treated?

Accepted Answer

Welfare payments are transfer payments made by the government and do not represent current production of goods and services. As such, they are not included in GDP as they do not reflect economic activity.

Quiz 5: Measuring a Nations Income

In a given year, an economy has consumption of $6000, investment of $4000, government purchases of $3000, exports of $1500, and imports of $500. What is the GDP?

In 2018, what size was Canadian investment?

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

Which example would be included in Canadian consumption?

In 2018, how large were Canadian government purchases of goods and services?

In Canada in 2018, what was the approximate amount of consumption per person?

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

In a given year, an economy has consumption of $8000, investment of $6000, government purchases of $5500, exports of $3500, and imports of $2000, What is the GDP?

With respect to GDP, how is unemployment compensation treated?

In Canada in 2018, what percentage of GDP was consumption?

With respect to GDP, how are transfer payments treated?

Which example will increase Canadian net exports?

In 2018, how large were Canadian government purchases of goods and services?

Which of the following is included in Canadian GDP?

What was the approximate Canadian GDP in 2018?

In a given year, an economy has consumption of $6000, investment of $4000, government purchases of $3500, exports of $1500, imports of $1600, taxes of $1200, transfer payments of $1400, and depreciation of $1300. What is the GDP?

What was the approximate GDP per person in Canada in 2018?

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

In 2018, what were Canadian net exports?

With respect to GDP, how are welfare payments treated?