MC_Answers

# MC_Answers - Multiple Choices Questions with Answers Please...

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Multiple Choices Questions with Answers Please bring one copy of this MC question on Thursday April 10, 2008 class. Students should try to work on these questions and I’ll discuss the answers on Thursday April 10, 2008 in class (also I’ll post the answers on the same day) 1. Suppose that an apartment complex converts to a condominium where the renters are now owners of their former apartments. a. The rent was included in GDP; the purchases of the condominiums are not. b. The rent was included in GDP, and so is the purchase of the condominiums. c. The rent was not included in GDP; the purchases of the condominiums are. d. Neither the rent of the apartments nor the purchases of the condominium are included in GDP. e. none of the above 2. If a country reported a nominal GDP of 85 billion in 2007 and 100 billion in 2006 and reported a GDP deflator of 100 in 2007 and of 105 in 2006, then from 2006 to 2007 real output a. and prices both rose. b. rose and prices fell. c. and prices both fell. d. fell and prices rose. 3. Suppose that Nova Scotia produces cheese and fish. In 2007, 20 units of cheese are sold at \$5 each, and 8 units of fish are sold at \$50 each. In 2006, the base year, the price of cheese was \$10 per unit, and the price of fish was \$75 per unit. a. Nominal 2007 GDP is \$500, real 2007 GDP is \$800, and the GDP deflator is 62.5. b. Nominal 2007 GDP is \$500, real 2007 GDP is \$800, and the GDP deflator is 160. c. Nominal 2007 GDP is \$800, real 2007 GDP is \$500, and the GDP deflator is 160. d. Nominal 2007 GDP is \$800, real 2007 GDP is \$500, and the GDP deflator is 62.5. e. None of the above is correct. 4. If real GDP doubles and the GDP deflator doubles, then nominal GDP will a. stay the same. b. double. c. triple. d. quadruple. 5. A German citizen buys an automobile produced in Canada by a Japanese company. As a result, a. Canadian net exports increase, Canadian. GNP and GDP are unaffected, Japanese GNP increases, German net exports decrease, and German GNP and GDP are unaffected. b. Canadian net exports, GNP, and GDP increase, Japanese GDP increases, German net exports decrease, and German GDP is unaffected. c. Canadian net exports and GDP increase, Japanese GNP increases, German net exports decrease, and German GDP and GNP are unaffected. d. Canadian net exports, GNP, and GDP are unaffected, Japanese GNP increases, German net exports decrease, and German GDP and GNP fall. 6. Consider two things that might be included in GDP: A. The estimated rental value of owner- occupied housing, and B. Purchases of newly constructed homes. a.

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MC_Answers - Multiple Choices Questions with Answers Please...

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