Question CARLETON UNIVERSITY

05 Jun Question CARLETON UNIVERSITY

Question
CARLETON UNIVERSITY

Department of Economics

ECON 1000 V – Introduction to Economics

ASSIGNMENT 4: Covers MACROECONOMICS Chapters 5-8. Topics: Measuring National Income; Measuring the Cost of Living; Production and Growth; Savings, Investment and the Financial System.

There are two sections: MCQs (section 1), and free response questions (Section B). TOTAL MARKS: 100

The deadline to submit the answersonline(through cuLearn) is July 21 at 11:55 pm. This deadline will be strictly enforced.

PLEASE NOTE THE FOLLOWING

ALL TECHNICAL ISSUES REGARDING POSTING OF COMPLETED ASSIGNMENT MUST

BE RESOLVED BY THE STUDENTS BY CONSULTING CCS.

how to submit your work in one file and on

I assume that you have learnt by this time how the system works. So be very sure next time to adhere to the deadline and also know how to post your work on the cuLearn. The second assignment will be posted very soon. So even now if you are not sure about the cuLearn, immediately seek help from the CCS or CUOL.

http://carleton.ca/ccs/contact/

Computing and communications services (CCS)

Telephone 613-520-3700

E-mail [email protected]

………………………………………………………………………………..

http://carleton.ca/cuol/contact-us/ cuol contact centre

Phone: 613-520-4055

Fax: 613-520-3459

Email

General Inquiries: [email protected]

Video On Demand Support: [email protected]

CUOL Exam queries: [email protected]

Graded material/convocation DVDs: [email protected]

One of the TAs observed the following: Would you please take these comments/observations into

consideration as you complete the assignment 2, please??

-Some students took pictures of their assignments (or graphs), however some pictures were blurry and hard to read. It would be great if you could mention to the students that they need to be sure the TA can read it.

– Would you also be able to remind people to put all their answers in 1 file (some people used a zip file, with several files in that folder).

– Would you also be able to ask people to put their name either in the title of the document or at the top of the document – this would avoid having a possible mix up

Yet another TA observed that some students did not read the questions properly as they answered all

questions in a section where they were supposed to answer only a few of them, not all. I also personally

feel that some students are missing the instructions as in the assignment two, some MCQs were not there

(MCQ 5, 12 and 37) and I mentioned it at the beginning of section 1. In spite of that, at least 20 students

E-mailed about that they are not finding questions 5, 12 and 34. SO, Read instructions real well

GOOD LUCK!

SECTION A: Multiple Choice. Answer any 25 question. (50 marks).Any extra questions answered will be crossed

out.

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____

1. Which of the following is included in GDP?

a. the sale of stocks and bonds

b. the sale of used goods

c. the sale of services such as visits to a doctor

d. the sale of ownership in a new company

____

2. What is the goal of macroeconomics?

a. to explain how economic changes affect prices of particular goods

b. to explain market failures, such as externalities and monopoly

c. to explain changes that affect the economy as a whole

d. to explain how an income tax influences a person’s decision to work

____

3. Which of the following is NOT included in GDP?

a. unpaid cleaning and maintenance of houses

b. services such as those provided by lawyers and hairstylists

c. final goods that are produced but not sold by the end of the year

d. production of foreign citizens living in Canada

____

4. With respect to GDP, how is unemployment compensation treated?

a. It is included as part of GDP because it represents income.

b. It is not included as part of GDP because it is a transfer payment.

c. It is included as part of GDP because the recipients must have worked in the past to qualify.

d. It is not included as part of GDP because the payments reduce business profits.

____

5. Which of the following supports the idea of using GDP as a measure of well-being?

a. Countries with higher GDP tend to have more luxury cars.

b. Countries with higher GDP tend to have more schools.

c. Countries with higher GDP tend to have more fast food restaurants.

d. Countries with higher GDP tend to have more food.

____

6. How is a country’s wealth related to other measures of well-being such as life expectancy and literacy? a. positively with both life expectancy and literacy

b. unrelated with life expectancy; positively with literacy

c. negatively with life expectancy; unrelated to literacy

d. negatively with both life expectancy and literacy

Table 6-3
In the country of Shem, the CPI is calculated using a market basket consisting of 5 apples, 4 loaves of bread, 3 robes, and 2 litres of gasoline. The per-unit prices of these goods have been as follows:

Year

Apples

Bread

Robes

Gasoline

2010

$1.00

$2.00

$10.00

$1.00

2011

$1.00

$1.50

$9.00

$1.50

2002

$2.00

$2.00

$11.00

$2.00

2013

$3.00

$3.00

$15.00

$2.50

____

7. Refer to the Table 6-3. What was the inflation rate, as measured by the CPI, between 2010 and 2011? a. –8.89 percent

b. –7.14 percent

c. 3.75 percent

d. 11.25 percent

____

8. How is a nation’s standard of living determined?

a. by its productivity

b. by its gross domestic product

c. by its national income

d. by how much it has relative to others

____

9. Tom works 6 hours a day and Jerry works 8 hours. Tom can produce 6 baskets of goods while Jerry can produce 7 baskets. Which of the following can we conclude? a. Tom’s productivity is greater than Jerry’s.

b. Tom’s and Jerry’s productivities are equal because they both work one day.

c. Tom’s and Jerry’s productivities cannot be compared.

d. Tom’s productivity is lower than Jerry’s.

____ 10. Laurie works 8 hours and produces 7 units of goods per hour. Iris works 6 hours and produces 10 units of goods per hour. Which of the following can we conclude?

a. Laurie’s productivity and output are greater that Iris’s.

b. Laurie’s productivity is greater than Iris’s, but Laurie’s output is less.

c. Iris’s productivity and output are greater than Laurie’s.

d. Iris’s productivity is greater that Laurie’s, but Iris’s output is less.

____ 11. What do economists call the equipment and structures available to produce goods and services? a. physical capital

b. human capital

c. the production function

d. technology

____ 12. Which of the following best defines human capital?

a. the knowledge and skills that workers acquire through education, training, and experience

b. the stock of equipment and structures that is used to produce goods and services

c. the total number of hours worked in an economy

d. the total amount that is paid in wages in an economy

____ 13. The price index is 270 in one year and 300 in the next. What is the inflation rate? a. 1.0 percent

b. 9.3 percent

c. 10.0 percent

d. 11.1 percent

____ 14. Research done at the Bank of Canada suggests that the sources of bias in CPI, taken together, cause the Canadian CPI to overstate increases in the cost of living. How much does the research indicate it is overstated by?

a. 3.4 percentage points

b. 2.1 percentage points

c. 1.6 percentage points

d. 0.6 of a percentage point

____ 15. How do the GDP deflator and the consumer price index compare to each other?

a. The GDP deflator compares the price of a fixed basket of goods and services to the price of the basket in the base year, but the consumer price index compares the price of currently produced goods and services to the price of the same goods and services in the base year.

b. The consumer price index compares the price of a fixed basket of goods and services to the price of the basket in the base year, but the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the base year.

c. Both the GDP deflator and the consumer price index compare the price of a fixed basket of goods and services to the price of the basket in the base year.

d. Both the GDP deflator and the consumer price index compare the price of currently produced goods and services to the price of the same goods and services in the base year.

____ 17. Which of the following is human capital?

a. breakfasts served in a company’s cafeteria

b. understanding how to use a company’s accounting software

c. computers that show training videos for new corporate employees

d. the average number of holiday days per year

____ 18. Jessica Smith is a teacher. Which of the following is a part of her human capital? a. her work experience

b. the textbooks she uses

c. the software she uses when delivering her lectures

d. the amount of time she spends with her students

____ 19. Suppose that an economy with constant returns to scale doubled its physical capital stock, doubled its available natural resources, and doubled its human capital, but kept the size of the labour force the same. How does the change in output compare to the change in productivity? a. Output would stay the same and so would its productivity.