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 | Money spent by the consumer on goods and services. |
B | Capital spending of companies and cooperation. |
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 2 |
A | ...a negative value. |
B | ...90% lower than the nominal GDP. |
C | ...50% higher than the nominal GDP. |
D | ...a positive value. |
E | ...exponentially increases over period of time. |
Question 3 |
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 | $675 |
B | $750 |
C | $300 |
D | $850 |
E | $975 |
Question 4 |
A | increased by 8% |
B | increased by 4% |
C | decreased by 12% |
D | increased by 12% |
E | decreased by 4% |
F | decreased by 8% |
Question 5 |
A | increase or decrease in quality of he product over time. |
B | introduction of new products to the market. |
C | availability of a product within a given market. |
D | changes to political or government policies. |
E | substitution of products. |
Question 6 |
A | $200 |
B | $400 |
C | $0 |
D | $100 |
E | $300 |
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 | $650 |
B | $750 |
C | $850 |
D | $300 |
E | $200 |
Question 8 |
A | Factors of production |
B | Good and services bought by consumers |
C | Labour, land and capital |
D | Goods and services sold by firms |
E | Wages, rent and profit |
Question 9 |
A | ...remains the same. |
B | ...quadruple. |
C | ...double. |
D | ...triple. |
Question 10 |
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 A |
D | Country D |
E | Country C |
Question 11 |
A | Employment Insurance payments. |
B | Federal government contributions to Canada Pension Plan. |
C | Increased tax funding to Science and Engineering. |
D | Purchasing land for municipal recreation facilities. |
E | Tax breaks for corporations to promote investment. |
Question 12 |
A | Environmental impact of the economic growth. |
B | Value of total capital of a company or a corporation. |
C | Economic investments made by individuals. |
D | Household expenditures on day-to-day items. |
E | Changes in Consumer Price Index (CPI). |
Question 13 |
A | $95,000 |
B | $120,000 |
C | $75,000 |
D | $50,000 |
E | $84,000 |
Question 14 |
A | grew, but by less than 15 percent. |
B | decreased. |
C | There is not enough information is provided to answer the above question. |
D | was unchanged. |
E | grew, by more than 15 percent. |
Question 15 |
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 | GDP includes only the value of final goods. |
D | A Canadian who permanently work in Japan will contribute only to the Canadian GDP. |
E | A Canadian who permanently work in Japan will contribute to both Canadian and Japanese GDP. |
Question 16 |
A | Investment, distribution of wealth and net exports. |
B | Consumption, investment, net imports and net exports. |
C | Investment, distribution of wealth and government purchases. |
D | Investment, net imports and net exports. |
E | Consumption, investment, government purchases and net exports. |
Question 17 |
A | There is no such term used by Economists. Stop making these non existing terms. |
B | The production of goods and services valued at constant prices. |
C | The production of goods and services valued at normalized prices. |
D | The production of goods and services valued at current prices. |
E | The production of goods and services obtained during a normal (stable) economy. |
Question 18 |
A | Nominal GDP |
B | Real GDP |
C | CPI |
D | Historical inflation rates |
E | Growth of industries |
F | Development of natural resources |
Question 19 |
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 reflects the distribution of income among a given population. |
D | Middle class income earners contributes to GDP more than the upper or lower class income earners. |
E | GDP can be used as a direct indicator of quality of life in a country. |
Question 20 |
A | ~ 145 |
B | ~ 860, 000 |
C | ~ 63 |
D | ~ 696 |
E | ~ 69 |
GDP Deflator = ($1100 / $760) x 100 = 144.74
Question 21 |
A | The household activities such as cooking food for your family is included in the Consumer Price Index (CPI). |
B | The "catch up" effect mostly observed in the developed world. |
C | The Consumer Price Index (CPI) is the best indicator of the economic growth of a nation. |
D | The Gross Domestic Product (GDP) is positively correlated with the adult literacy rate. |
E | The Gross Domestic Product (GDP) is negatively correlated with the life expectancy rate. |
Question 22 |
A | A measure of the ability of a typical person in a society to obtain goods and services. |
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 which provides the most complete outlook of the entire economy of a nation. |
Question 23 |
A | Inflation rate |
B | Consumer Price Index |
C | Interest rates posted by banks |
D | Real interest rate |
Question 24 |
CPI-2015 = $100
CPI-2010 = $75
A | ~ 50 |
B | None of the answers are correct. |
C | ~ 75 |
D | ~ 133 |
E | ~ 100 |
Question 25 |
A | Illegal products purchased in a back alley of the Geoscience building. |
B | Paper purchased by Nelson Education to print the Macroeconomics textbook. |
C | Government construction of a railroad across Canada. |
D | Shares of a company purchased from a bank by a customer. |
E | Government and private sector investments on science and engineering projects at the University of Calgary. |
Question 26 |
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 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 27 |
A | 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. |
B | 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. |
C | It measures all transactions within a country including social values such as quality of health and environment. |
D | It is a good measurement of society's welfare because it measures a nation's economic stability through assessment of government policies. |
E | It only measures goods and services produced because the other values such as quality of health care and education cannot be measured, |
Question 28 |
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 | $750 |
C | $300 |
D | $650 |
E | $850 |
Question 29 |
A | Nominal Gross Domestic Products |
B | Gross National Products |
C | Consumer Price Index |
D | Real Gross Domestic Products |
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 | $300 |
B | $750 |
C | $650 |
D | $850 |
E | $200 |
Question 31 |
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 net income earned by a nation's permanent residents regardless of where they were located when the income was earned. |
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 products and services produced by local companies and government agencies as opposed to multinational companies. |
Question 32 |
A | A measure of the ability of a population to obtain a certain product or service. |
B | Rate of increase in economic pressures on a given system. |
C | Rate at which the stock market index increase or decrease. |
D | Rate of increase in costs for goods and services. |
E | Rate at which the average prices are rising. |
Question 33 |
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 | $83 |
B | $54 |
C | $45 |
D | $20 |
E | $35 |
Question 34 |
A | overestimate |
B | be reduced dramatically |
C | underestimate |
D | not take into account for |
Question 35 |
A | A Canadian investing in a poor country with lower GDP. |
B | A foreign investor buying Canada GIC bonds. |
C | A family purchasing a house without a mortgage. |
D | A company buying equipment to open a factory. |
E | Payments made by the government for Canadian Pension Plan. |
Question 36 |
A | Compute the basket's cost |
B | Find the prices |
C | Choose a base year |
D | Determine the basket |
E | Calculate GDP |
Question 37 |
A | The rate at which the average prices of commodities increase/decrease over a given set period of time. |
B | A measurement of employed and unemployed persons within a given nation. |
C | Total monetary (dollar) value of all goods and services produced by everyone in a particular economy. |
D | The average of the net household income in a particular economy. |
E | The net exchange of shares at a particular (country specific) stock market. |
Question 38 |
A | increases the purchasing power of the dollar. |
B | decrease the GDP and GNP. |
C | decrease the standard of living. |
D | decrease the profits of bankers (lenders). |
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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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