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