27 Using the chart below calculate GDP using the expenditure approach. Gov’t purchases $45B Rental income $31B Exports $18B Indirect taxes $27B Gross investment $37B Wages and salaries $78B Corporate profit $40B Interest income $19B Imports $17B Net investments $28B Consumer spending $87B Depreciation $9B $195B $170B $161B $186B 28 If a legal ceiling price is set below the equilibrium price: a shortage of the product will occur a surplus of the product will occur an underground market will evolve neither the equilibrium price nor equilibrium quantity will be affected 29. To economists, the main difference between "the short run" and "the long run" is that: the law of diminishing marginal returns applies in the long run but not in the short run in the long run, all resources are variable while in the short run, at least one resource is fixed fixed costs are more important to decision making in the long run than they are in the short run in the short run all resources are fixed, while in the long run all resources are variable 30.A surplus of product will occur when price is: above equilibrium with the result that quantity demanded exceeds quantity supplied above equilibrium with the result that quantity supplied exceeds quantity demanded below equilibrium with the result that quantity demanded exceeds quantity supplied below equilibrium with the result that quantity supplied exceeds quantity demanded
Just solve questions 27-30, thank u!
23 Canada’s GNP differs from its
- GNP measures the output of Canadian owned
factors at home and abroad, whereas the GDP
measures the output produced by factors located
in Canada.
- GNP measures the output produced by the
factors located in Canada, whereas GDP measures
the ouput produced by Canadian owned factors.
- GNP includes net exports, whereas GDP excludes
net exports
- None of the above are differences between GNP
and GDP
- 24.To be officially unemployed, a person must:
- be in the labour force
- be 21 years of age or older
- have just lost a job
- be collecting Employment Insurance
- 25.Ms. Eckstein has lost her job in a Quebec textile
plant because of import competition. She intends
to take a short course in electronics and move to
Alberta where she anticipates new jobs will be
available. We can say that Ms. Eckstein is faced
with:
- secular
unemployment - cyclical unemployment
- structural unemployment
- frictional unemployment
- 26.Inflation:
- Always reduces the cost of living
- Always reduces the standard of living
- Reduces the price of products
- Reduces
purchasing power
27 Using the chart below calculate GDP using the
expenditure approach.
Gov’t purchases $45B
Rental income $31B
Exports
$18B
Indirect taxes
$27B
Gross investment $37B
Wages and salaries $78B
Corporate profit $40B
Interest income $19B
Imports
$17B
Net investments $28B
Consumer spending $87B
$9B
- $195B
- $170B
- $161B
- $186B
28 If a legal ceiling price is set below the
- a shortage of the product will occur
- a surplus of the product will occur
- an underground market will evolve
- neither the equilibrium price nor
equilibrium quantity will
be affected
- 29. To economists, the main difference between "the
short run" and "the long run" is that:
- the law of diminishing marginal returns applies in the
long run but not in the short run
- in the long run, all resources are variable while in the
short run, at least one resource is fixed
- fixed costs are more important to decision making in
the long run than they are in the short run
- in the short run all resources are fixed, while in the
long run all resources are variable
- 30.A surplus of product will occur when price is:
- above equilibrium with the result that quantity
demanded exceeds quantity supplied
- above equilibrium with the result that quantity
supplied exceeds quantity demanded
- below equilibrium with the result that quantity
demanded exceeds quantity supplied
- below equilibrium with the result that quantity
supplied exceeds quantity demanded
- 31.Which of the following would decrease
aggregate demand and shift the AD curve to the
left?
- a decline in personal income tax rates
- a decline in consumer spending
- a higher level of government purchases
- a fall in interest rates
- 32.Which of the following is an implicit cost to the
Johnston Manufacturing Company?
- payments of wages to its office workers
- property taxes
- rent paid for the use of equipment owned by the
Schultz Machinery Company
- returns that the shareholders could have received if
they had not bought shares in the Johnson
Manufacturing Company
- 33.Which of the following is a role of the Bank of
Canada?
- Managing the money supply
- Increasing or decreasing government spending
- Establishing fiscal budgets
- Granting loans to consumers
- 34.Fiscal policy refers to:
- Changes in taxes and government purchases made by
legislation for the purpose of stabilizing the economy
- The authority that the prime minister has to change
personal income tax rates
- Changes in government purchases or taxes that have the
effect of destabilizing the economy
- Changes in the money supply and interest rates by the
Bank of Canada
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