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 | Dividing the base year 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 of goods & services of the current year and multiply by 100. |
C | Diving the annual GDP by the price of basket and multiply by 100. |
D | Diving the price of basket of goods & services of the current year by the price of basket in base year and multiply by 100. |
E | Diving price of basket in base year by the price of basket of goods & services of the current year and multiply by 100. |
Question 2 |
A | A measurement of employed and unemployed persons within a given nation. |
B | The average of the net household income in a particular economy. |
C | The net exchange of shares at a particular (country specific) stock market. |
D | The rate at which the average prices of commodities increase/decrease over a given set period of time. |
E | Total monetary (dollar) value of all goods and services produced by everyone in a particular economy. |
Question 3 |
A | Illegal products purchased in a back alley of the Geoscience building. |
B | Government and private sector investments on science and engineering projects at the University of Calgary. |
C | Government construction of a railroad across Canada. |
D | Paper purchased by Nelson Education to print the Macroeconomics textbook. |
E | Shares of a company purchased from a bank by a customer. |
Question 4 |
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 | Country A |
B | The information provided here is not adequate to answer this question. |
C | Country B |
D | Country C |
E | Country D |
Question 5 |
A | decrease the profits of bankers (lenders). |
B | increases the purchasing power of the dollar. |
C | decrease the GDP and GNP. |
D | decrease the standard of living. |
Question 6 |
A | Economic investments made by individuals. |
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 | Changes in Consumer Price Index (CPI). |
Question 7 |
A | increased by 12% |
B | decreased by 4% |
C | decreased by 12% |
D | increased by 4% |
E | decreased by 8% |
F | increased by 8% |
Question 8 |
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 | $650 |
D | $850 |
E | $750 |
Question 9 |
A | Real interest rate |
B | Interest rates posted by banks |
C | Consumer Price Index |
D | Inflation rate |
Question 10 |
A | Capital spending of companies and cooperation. |
B | Money spent by the consumer on goods and services. |
C | Money saved within a particular economic system (eg. country). |
D | Spending by the government for the well being of their citizens (eg. building roads) |
Question 11 |
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 | $650 |
B | $300 |
C | $850 |
D | $200 |
E | $750 |
Question 12 |
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 | $300 |
D | $975 |
E | $675 |
Question 13 |
A | Factors of production |
B | Wages, rent and profit |
C | Labour, land and capital |
D | Good and services bought by consumers |
E | Goods and services sold by firms |
Question 14 |
A | Compute the basket's cost |
B | Choose a base year |
C | Find the prices |
D | Calculate GDP |
E | Determine the basket |
Question 15 |
A | There is not enough information is provided to answer the above question. |
B | grew, but by less than 15 percent. |
C | was unchanged. |
D | grew, by more than 15 percent. |
E | decreased. |
Question 16 |
A | A family purchasing a house without a mortgage. |
B | A foreign investor buying Canada GIC bonds. |
C | A Canadian investing in a poor country with lower GDP. |
D | Payments made by the government for Canadian Pension Plan. |
E | A company buying equipment to open a factory. |
Question 17 |
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 | $54 |
B | $20 |
C | $83 |
D | $35 |
E | $45 |
Question 18 |
A | CPI |
B | Real GDP |
C | Historical inflation rates |
D | Growth of industries |
E | Nominal GDP |
F | Development of natural resources |
Question 19 |
A | 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. |
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 measures all transactions within a country including social values such as quality of health and environment. |
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 is a good measurement of society's welfare because it measures a nation's economic stability through assessment of government policies. |
Question 20 |
A | ...exponentially increases over period of time. |
B | ...a negative value. |
C | ...50% higher than the nominal GDP. |
D | ...90% lower than the nominal GDP. |
E | ...a positive value. |
Question 21 |
A | The Gross Domestic Product (GDP) is positively correlated with the adult literacy rate. |
B | The "catch up" effect mostly observed in the developed world. |
C | The household activities such as cooking food for your family is included in the Consumer Price Index (CPI). |
D | The Consumer Price Index (CPI) is the best indicator of the economic growth of a nation. |
E | The Gross Domestic Product (GDP) is negatively correlated with the life expectancy rate. |
Question 22 |
A | Consumption, investment, government purchases and net exports. |
B | Investment, distribution of wealth and net exports. |
C | Investment, net imports and net exports. |
D | Consumption, investment, net imports and net exports. |
E | Investment, distribution of wealth and government purchases. |
Question 23 |
A | GDP reflects the market value of all final goods produced among a given population. |
B | GDP can be simply summarized as the trade balance of a country. |
C | GDP can be used as a direct indicator of quality of life in 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 24 |
A | Employment Insurance payments. |
B | Increased tax funding to Science and Engineering. |
C | Purchasing land for municipal recreation facilities. |
D | Federal government contributions to Canada Pension Plan. |
E | Tax breaks for corporations to promote investment. |
Question 25 |
A | A measure of the overall cost of the goods and services bought by a typical consumer. |
B | A measure of how much debt a typical person has in a given society. |
C | A measure of the ability of a typical person in a society to obtain goods and services. |
D | A measure which provides the most complete outlook of the entire economy of a nation. |
E | A measure of individual economic statuses of a population. |
Question 26 |
CPI-2015 = $100
CPI-2010 = $75
A | ~ 50 |
B | ~ 75 |
C | ~ 100 |
D | ~ 133 |
E | None of the answers are correct. |
Question 27 |
A | ~ 69 |
B | ~ 696 |
C | ~ 145 |
D | ~ 63 |
E | ~ 860, 000 |
GDP Deflator = ($1100 / $760) x 100 = 144.74
Question 28 |
A | The production of goods and services valued at normalized 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 current prices. |
E | The production of goods and services valued at constant prices. |
Question 29 |
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 | $300 |
B | $850 |
C | $650 |
D | $750 |
E | $200 |
Question 30 |
A | If a Canadian owns a factory in Japan, the output of this Japanese factory will contribute to Canadian GDP. |
B | GDP includes only the value of final goods. |
C | A Canadian who permanently work in Japan will contribute to both Canadian and Japanese GDP. |
D | If a Canadian owns a factory in Japan, the output of this Japanese factory will contribute to both Canadian and Japanese GDP. |
E | A Canadian who permanently work in Japan will contribute only to the Canadian GDP. |
Question 31 |
A | $0 |
B | $400 |
C | $200 |
D | $300 |
E | $100 |
Question 32 |
A | ...double. |
B | ...quadruple. |
C | ...triple. |
D | ...remains the same. |
Question 33 |
A | Rate at which the average prices are rising. |
B | Rate of increase in costs for goods and services. |
C | Rate at which the stock market index increase or decrease. |
D | A measure of the ability of a population to obtain a certain product or service. |
E | Rate of increase in economic pressures on a given system. |
Question 34 |
A | Real Gross Domestic Products |
B | Gross National Products |
C | Consumer Price Index |
D | Nominal Gross Domestic Products |
Question 35 |
A | changes to political or government policies. |
B | substitution of products. |
C | introduction of new products to the market. |
D | increase or decrease in quality of he product over time. |
E | availability of a product within a given market. |
Question 36 |
A | underestimate |
B | not take into account for |
C | overestimate |
D | be reduced dramatically |
Question 37 |
A | 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. |
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 and services produced by local companies and government agencies as opposed to multinational companies. |
E | Total income earned by a nation's residents in the production of goods and services. |
Question 38 |
A | $120,000 |
B | $84,000 |
C | $75,000 |
D | $95,000 |
E | $50,000 |
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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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