Review Questions for Macro Economics ch 6.docx

D ian buys a 2009 honda civic for 3000 e a

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D) Ian buys a 2009 Honda Civic for $3,000. E) A millionaire from Michigan buys $400 of fresh Ontario blueberries while on vacation in Canada. 5) Consumer income is $200. If net taxes are $70 and consumers spend $80 on products and services, consumer savings is A) - $10. B) $10. C) $50. D) $120. E) $190.
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6) Which is consumption ( C ) spending? A) The Singh household buys a new car. B) The Rigid Steel Company buys a new car. C) The Rigid Steel Company buys a new computer. D) Welfare payments to single mothers. E) The CBC spends money on children's programs. 7) Which is business investment ( I ) spending? A) The government builds a new office tower. B) The Hong household buys a new computer. C) The Rigid Steel Company sells pipe to Alaska. D) The Rigid Steel Company buys a pipe-cutting machine. E) Peter's Pizza Parlour sells an old oven to Betty's Bakery. 8) Business investment ( I ) spending does not include Ford Motor Company A) building a new assembly factory. B) replacing worn-out production robots. C) buying new production robots. D) buying new assembly line motors. E) buying Canadian government bonds. 9) In calculating Canadian GDP, imports are subtracted from aggregate spending because A) some consumption spending is on imports.
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