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Chapter 20

Chapter 20 Measuring GDP.pdf

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ECON 1000
Steven Edwards

apter 20Measuring GDPCh1Gross domestic producte isAthe market value of eall the intermediate geoods and services proeduced in a country dureing a given timeperiodBthe final value of aell goods produced in ea country in a givene time periodCthe market value of eall goods and servicees produced in a countery during a given timee periodDthe average value ofe output produced in ae country in a given etime periodEthe market value of eall the final goods eand services produced ien a country during ae given time periodTopicGross Domestic Producte2In calculating GDP ecoenomists use the valuee of final goods ande services becauseAfinal goods can be expeorted to other counteriesBby using final goods eand services they avoeid double countingCintermediate goods are eimported from other coeuntriesDGDP is underestimated ife intermediate goods aree used insteadEnone of the aboveTopicGross Domestic Producte3Which of the followineg statements is trueAFinal goods and services preoduced in Canada by foereigners are part ofe the foreign countryes GDPBFinal goods and services preoduced in Canada by foereigners are part ofe Canadas GDPCFinal goods and services preoduced in Canada by foereigners are exportsDFinal goods and services preoduced in Canada by foereigners are importseEFinal goods and services preoduced abroad by Canadieans are part of Caneadian GDPTopicGross Domestic Producte4The circular flow diageram illustrates the e expenditures made byAhouseholds and investeors onlyBhouseholds firms goveernments and the reste of the worldChouseholds and firms eonlyDfirms households ande governments onlyEhouseholds onlyTopicGross Domestic Producte5In the circular flow meodelAfirms are sellers of egoods and services in egoods marketsBhouseholds are selleres of factor services ein goods marketsCfirms are sellers of ethe factors in factoer marketsDhouseholds are buyerse of goods and servicees in the factor markeetsEfirms are buyers of geoods and services in feinal marketsTopicGross Domestic Producte16The circular flow modeel is used toAshow the real flows eand money flows betweene different sectors ofe the economyBexplain how the prices eof factors are determeinedCshow how nominal GDP eis distinct from real eGDPDshow the effects of ienflation in a simple eeconomyEshow the stocks of vearious sectors of thee economyTopicGross Domestic Producte7The purchasers in thee goods and services mearket areAhouseholds and firms eonlyBhouseholds and goverenment onlyChouseholds firms goveernment and those whoe import our goodsDhouseholds and net expeorters onlyEhouseholds firms ande government onlyTopicGross Domestic Producte8Of the following itemse which one would be conesidered as investment ien the National Income and ExcpenditureAccountsAThe purchase of a Caneadian government bondeBThe purchase of 100 sheares of Bell Canada estock on the Toronteo Stock ExchangeCThe purchase of a new evan by a potter who epacks it with his warees and travels to aret shows on weekendsDThe purchase of a 100yearold house that was peut on the protected heistoric sites listEAll of the aboveTopicGross Domestic Producte9Complete the followineg sentence Net exportse equalsAexports plus importseBexports minus importseCimports minus exportseDexports divided by imporetsEforeign borrowing by reesidents of Canada mineus domestic borrowing bey nonresidents of CaenadaTopicGross Domestic Producte10In the National Income and Excpenditure Accounts government expendituree refers to spending eon goods andservices byAfederal and provinciale governments onlyBfederal provincial aned local governmentsCthe federal governmente and local governmentes only Provincial goevernment expenditures aere included inprovincial GDP calculaetionsDthe federal governmente only Provincial ande local government expeenditures are included ien provincialGDP calculationsEprovincial and local egovernments onlyTopicGross Domestic Producte2
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