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Microeconomics Study Set 28

Business

Quiz 20 :

The Measurement of National Income

Quiz 20 :

The Measurement of National Income

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Which of the following statements about national -income accounting is correct?
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Answer:

B

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Suppose national accounting was done by adding up the market values of all outputs of all firms.This approach would
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E

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In national-income accounting,the value of intermediate products
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Answer:

B

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A farmer raises free-range chickens,which he sells to a company for $1000.That company sells the ʺprocessedʺ chickens to a grocery store for $1600,which in turn produces roasted chickens which are sold to the public for $2400.Based on this information,the value of total output is equal to
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In Shoetown,a rancher takes $0 worth of inputs and produces animal skins,which he sells to the tanner for $400.The tanner then sells leather to the shoemaker for $700,and the shoemaker then sells $1200 worth of shoes.The value added from these transactions is
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In national-income accounting,ʺdouble countingʺ
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Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is an injection into the circular flow?
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In Canada,the measurement of national income and national product is conducted by
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In Shoetown,a rancher takes $0 worth of inputs and produces animal skins,which he sells to the tanner for $400.The tanner then sells leather to the shoemaker for $700,and the shoemaker then sells $1200 worth of shoes.The value added by the tanner is
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Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is an injection into the circular flow?
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Total value added in an economy is equal to the value of
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All goods and services produced by one firm but used as inputs into a further stage of production are called
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When adding up the value of all goods produced in the economy,double counting can be avoided if only the ________ is included.
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Consider the circular flow of income and expenditure in the Canadian economy.Which of the following is a withdrawal from the circular flow?
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The ʺvalue addedʺ for an individual firm can be calculated by
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Suppose a Canadian firm imports $5000 worth of frisbees from China and sells them for $10 000.The effect on GDP would be
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Consider the circular flow of income and expenditure in the Canadian economy.Which of the following is a withdrawal from the circular flow?
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Jodieʹs Bakery generates a yearly revenue of $6000.Throughout the year Jodie spends $1500 on flour,$1000 on fruit,$500 on sugar & spices,$1500 on butter,and employs an assistant whom she pays $1000.Calculate the value of the annual output produced by Jodieʹs Bakery using the value added method.
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In Lumberville,the lumberjack cuts trees and sells them to the local mill for $500.The local mill processes these trees into wood planks and sells them to the carpenter for $800.Finally,the carpenter uses these wood planks to make tables which he sells for $1400 to Lumbervilleʹs residents.If we allowed double counting,the total value of Lumbervilleʹs output would be calculated as ________.But if we correctly compute the total value added,the value of the total output in Lumberville would be ________.
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Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is an injection into the circular flow?
Multiple Choice
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