Economics 203 is the Principles Of Macroeconomics class. Depending on the Professor, the exams format may or may not be multiple choice. This quiz only covers materials from Chapters 5 and 6 from 6th Canadian Edition of Principles of Macroeconomics by Mankiw, Kneebone and McKenzie. You may try Midterm II and Final exams for questions from other chapters.
Disclaimer: While every reasonable effort is made to ensure that the information provided is accurate, no guarantees for the currency or accuracy of information are made. It takes several proof readings and rewrites to bring the quiz to an exceptional level. If you find an error, please contact me as soon as possible. Please indicate the question ID-Number or description because server may randomize the questions and answers.
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Economics (ECON 203-UCAL) Midterm Exam I
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Question 1 |
A | ~ 696 |
B | ~ 145 |
C | ~ 69 |
D | ~ 63 |
E | ~ 860, 000 |
GDP Deflator = ($1100 / $760) x 100 = 144.74
Question 2 |
A | The production of goods and services valued at constant prices. |
B | The production of goods and services obtained during a normal (stable) economy. |
C | There is no such term used by Economists. Stop making these non existing terms. |
D | The production of goods and services valued at normalized prices. |
E | The production of goods and services valued at current prices. |
Question 3 |
A | ...remains the same. |
B | ...triple. |
C | ...double. |
D | ...quadruple. |
Question 4 |
A | A measure of the overall cost of the goods and services bought by a typical consumer. |
B | A measure of the ability of a typical person in a society to obtain goods and services. |
C | A measure of individual economic statuses of a population. |
D | A measure of how much debt a typical person has in a given society. |
E | A measure which provides the most complete outlook of the entire economy of a nation. |
Question 5 |
A | Total net products and services produced by local companies and government agencies as opposed to multinational companies. |
B | Total income of nation's residents minus losses from depreciation. |
C | Total net income earned by a nation's permanent residents regardless of where they were located when the income was earned. |
D | Total net products produced by raw materials that are obtained within the geographic and national boundaries of a nation. For example, Alberta oil obtained within Canada will contribute to GNP, but not oil imports from USA even if they were refined in Canada. |
E | Total income earned by a nation's residents in the production of goods and services. |
Question 6 |
A | Changes in Consumer Price Index (CPI). |
B | Value of total capital of a company or a corporation. |
C | Environmental impact of the economic growth. |
D | Household expenditures on day-to-day items. |
E | Economic investments made by individuals. |
Question 7 |
Year | Price of bread | Quantity of bread | Price of butter | Quantity of butter |
2012 | $1 | 100 | $2 | 50 |
2013 | $1.50 | 200 | $3 | 150 |
2014 | $2 | 250 | $4 | 200 |
A | $200 |
B | $300 |
C | $750 |
D | $850 |
E | $650 |
Question 8 |
A | If a Canadian owns a factory in Japan, the output of this Japanese factory will contribute to Canadian GDP. |
B | If a Canadian owns a factory in Japan, the output of this Japanese factory will contribute to both Canadian and Japanese GDP. |
C | A Canadian who permanently work in Japan will contribute only to the Canadian GDP. |
D | A Canadian who permanently work in Japan will contribute to both Canadian and Japanese GDP. |
E | GDP includes only the value of final goods. |
Question 9 |
Year | Price of bread | Quantity of bread | Price of butter | Quantity of butter |
2012 | $1 | 100 | $2 | 50 |
2013 | $1.50 | 200 | $3 | 150 |
2014 | $2 | 250 | $4 | 200 |
A | $975 |
B | $300 |
C | $750 |
D | $675 |
E | $850 |
Question 10 |
A | $0 |
B | $200 |
C | $100 |
D | $400 |
E | $300 |
Question 11 |
A | $84,000 |
B | $95,000 |
C | $120,000 |
D | $75,000 |
E | $50,000 |
Question 12 |
CPI-2015 = $100
CPI-2010 = $75
A | ~ 133 |
B | ~ 75 |
C | ~ 50 |
D | ~ 100 |
E | None of the answers are correct. |
Question 13 |
A | GDP reflects the market value of all final goods produced among a given population. |
B | GDP can be used as a direct indicator of quality of life in a country. |
C | GDP can be simply summarized as the trade balance of a country. |
D | Middle class income earners contributes to GDP more than the upper or lower class income earners. |
E | GDP reflects the distribution of income among a given population. |
Question 14 |
Year | Price of bread | Quantity of bread | Price of butter | Quantity of butter |
2012 | $1 | 100 | $2 | 50 |
2013 | $1.50 | 200 | $3 | 150 |
2014 | $2 | 250 | $4 | 200 |
A | $45 |
B | $20 |
C | $54 |
D | $83 |
E | $35 |
Question 15 |
A | Growth of industries |
B | CPI |
C | Nominal GDP |
D | Development of natural resources |
E | Historical inflation rates |
F | Real GDP |
Question 16 |
A | Payments made by the government for Canadian Pension Plan. |
B | A company buying equipment to open a factory. |
C | A family purchasing a house without a mortgage. |
D | A Canadian investing in a poor country with lower GDP. |
E | A foreign investor buying Canada GIC bonds. |
Question 17 |
A | Labour, land and capital |
B | Goods and services sold by firms |
C | Wages, rent and profit |
D | Good and services bought by consumers |
E | Factors of production |
Question 18 |
A | Real interest rate |
B | Consumer Price Index |
C | Interest rates posted by banks |
D | Inflation rate |
Question 19 |
A | Determine the basket |
B | Choose a base year |
C | Calculate GDP |
D | Compute the basket's cost |
E | Find the prices |
Question 20 |
A | There is not enough information is provided to answer the above question. |
B | grew, by more than 15 percent. |
C | was unchanged. |
D | grew, but by less than 15 percent. |
E | decreased. |
Question 21 |
A | decrease the GDP and GNP. |
B | decrease the profits of bankers (lenders). |
C | decrease the standard of living. |
D | increases the purchasing power of the dollar. |
Question 22 |
A | Rate at which the stock market index increase or decrease. |
B | Rate of increase in economic pressures on a given system. |
C | A measure of the ability of a population to obtain a certain product or service. |
D | Rate of increase in costs for goods and services. |
E | Rate at which the average prices are rising. |
Question 23 |
Country | GDP in millions | Population in millions |
A | $10,400 | 30.1 |
B | $7,000 | 12.7 |
C | $9,000 | 80.6 |
D | $15,000 | 40.5 |
A | The information provided here is not adequate to answer this question. |
B | Country B |
C | Country D |
D | Country C |
E | Country A |
Question 24 |
A | The Consumer Price Index (CPI) is the best indicator of the economic growth of a nation. |
B | The household activities such as cooking food for your family is included in the Consumer Price Index (CPI). |
C | The Gross Domestic Product (GDP) is positively correlated with the adult literacy rate. |
D | The Gross Domestic Product (GDP) is negatively correlated with the life expectancy rate. |
E | The "catch up" effect mostly observed in the developed world. |
Question 25 |
A | Government construction of a railroad across Canada. |
B | Illegal products purchased in a back alley of the Geoscience building. |
C | Paper purchased by Nelson Education to print the Macroeconomics textbook. |
D | Government and private sector investments on science and engineering projects at the University of Calgary. |
E | Shares of a company purchased from a bank by a customer. |
Question 26 |
Year | Price of bread | Quantity of bread | Price of butter | Quantity of butter |
2012 | $1 | 100 | $2 | 50 |
2013 | $1.50 | 200 | $3 | 150 |
2014 | $2 | 250 | $4 | 200 |
A | $850 |
B | $750 |
C | $650 |
D | $200 |
E | $300 |
Question 27 |
A | Total monetary (dollar) value of all goods and services produced by everyone in a particular economy. |
B | A measurement of employed and unemployed persons within a given nation. |
C | The average of the net household income in a particular economy. |
D | The net exchange of shares at a particular (country specific) stock market. |
E | The rate at which the average prices of commodities increase/decrease over a given set period of time. |
Question 28 |
A | Employment Insurance payments. |
B | Tax breaks for corporations to promote investment. |
C | Federal government contributions to Canada Pension Plan. |
D | Increased tax funding to Science and Engineering. |
E | Purchasing land for municipal recreation facilities. |
Question 29 |
A | overestimate |
B | underestimate |
C | not take into account for |
D | be reduced dramatically |
Question 30 |
Year | Price of bread | Quantity of bread | Price of butter | Quantity of butter |
2012 | $1 | 100 | $2 | 50 |
2013 | $1.50 | 200 | $3 | 150 |
2014 | $2 | 250 | $4 | 200 |
A | $200 |
B | $650 |
C | $750 |
D | $850 |
E | $300 |
Question 31 |
A | changes to political or government policies. |
B | introduction of new products to the market. |
C | availability of a product within a given market. |
D | increase or decrease in quality of he product over time. |
E | substitution of products. |
Question 32 |
A | Diving the annual GDP by the price of basket of goods & services of the current year and multiply by 100. |
B | Diving the annual GDP by the price of basket and multiply by 100. |
C | Dividing the base year GDP by the price of basket of goods & services of the current year and multiply by 100. |
D | Diving price of basket in base year by the price of basket of goods & services of the current year and multiply by 100. |
E | Diving the price of basket of goods & services of the current year by the price of basket in base year and multiply by 100. |
Question 33 |
A | ...a negative value. |
B | ...exponentially increases over period of time. |
C | ...a positive value. |
D | ...50% higher than the nominal GDP. |
E | ...90% lower than the nominal GDP. |
Question 34 |
A | Gross National Products |
B | Consumer Price Index |
C | Nominal Gross Domestic Products |
D | Real Gross Domestic Products |
Question 35 |
A | Money saved within a particular economic system (eg. country). |
B | Spending by the government for the well being of their citizens (eg. building roads) |
C | Money spent by the consumer on goods and services. |
D | Capital spending of companies and cooperation. |
Question 36 |
A | It is a good measurement of society's welfare because it measures a nation's economic stability through assessment of government policies. |
B | It is a good measurement of society's welfare because it measures a nation's ability to purchase the inputs that can be used to help produce items that contribute to welfare. |
C | It is not a good indicator of society's welfare because unlike GNP, the GDP does not take into account quality of life attributes such as health care and education. |
D | It only measures goods and services produced because the other values such as quality of health care and education cannot be measured, |
E | It measures all transactions within a country including social values such as quality of health and environment. |
Question 37 |
A | increased by 4% |
B | decreased by 4% |
C | decreased by 8% |
D | increased by 8% |
E | increased by 12% |
F | decreased by 12% |
Question 38 |
A | Consumption, investment, net imports and net exports. |
B | Consumption, investment, government purchases and net exports. |
C | Investment, net imports and net exports. |
D | Investment, distribution of wealth and government purchases. |
E | Investment, distribution of wealth and net exports. |
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Credits: Based on the excellent class notes provided by, Dr. Peter Tracey during Fall 2015 and textbook ISBN-978-0-17-653085-3.
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