Ch. 20 econ Exam Questions with
Answers
1. In national-income accounting, "depreciation" refers to correct answer:
The amount by which the capital stock is depleted during the accounting period
2. One major reason that GDP is an inaccurate measure of the
"quality of life" is that correct answer: It does not include the value of leisure
3. In canada, the measurement of national income and national
product is conducted by correct answer: Statistics Canada
4. In measuring GDP from the expenditure side
(GDP=Ca+Ia+Ga+NXa), which of the following expenditures are
included and within which of the four cate- gories?
a. expenditures on furniture by consumers are
b. expenditures on furniture by firms are
c. expenditures on new computers by Canadian owned insurance
companies located in Canada are
d. expenditures by canadian owned insurance companies located in
the united states on new computers are
e. expenditures on new computers by u.s owned insurance
companies located in canada are
f. reductions in business inventories are
g. purchases of second hand appliances are
h. the hiring of economic consultants by the alberta government is
i. the purchase of canadian produced software by a firm in japan is
correct answer: a. included in the category of Ca
b. included in the category of Ia
c. included in the category of Ia
d. included in the GDP of the USA in the category of Ia
e. included in the category of Ia
f. included in the category of Ia
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, g. excluded
h. included in the category of Ga
i. included in the category of NXa
5. Consider the following statement correct answer: an increase in
per capita income guar- antees an increase in living standards.
is this statement true or false, and
2/
6
Answers
1. In national-income accounting, "depreciation" refers to correct answer:
The amount by which the capital stock is depleted during the accounting period
2. One major reason that GDP is an inaccurate measure of the
"quality of life" is that correct answer: It does not include the value of leisure
3. In canada, the measurement of national income and national
product is conducted by correct answer: Statistics Canada
4. In measuring GDP from the expenditure side
(GDP=Ca+Ia+Ga+NXa), which of the following expenditures are
included and within which of the four cate- gories?
a. expenditures on furniture by consumers are
b. expenditures on furniture by firms are
c. expenditures on new computers by Canadian owned insurance
companies located in Canada are
d. expenditures by canadian owned insurance companies located in
the united states on new computers are
e. expenditures on new computers by u.s owned insurance
companies located in canada are
f. reductions in business inventories are
g. purchases of second hand appliances are
h. the hiring of economic consultants by the alberta government is
i. the purchase of canadian produced software by a firm in japan is
correct answer: a. included in the category of Ca
b. included in the category of Ia
c. included in the category of Ia
d. included in the GDP of the USA in the category of Ia
e. included in the category of Ia
f. included in the category of Ia
1/
6
, g. excluded
h. included in the category of Ga
i. included in the category of NXa
5. Consider the following statement correct answer: an increase in
per capita income guar- antees an increase in living standards.
is this statement true or false, and
2/
6
