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HAPR 23: MARING A ATIONS INCOETrue/FaleIndice whether t statmntis u aTe cur flw diara descres all ransctins btwen oueholsand firms in a smpeeconoyndsowstheqality of pediture and cme.ASE:POIS:0 / 1.Gro dmestic producicdes ost t podceand solilcitly.ANSWER:FPOINTS:0 1.Net nanal roct is thetotal icoe of a nations residts minus loses from ereition.ANSWE：TIS:0/ 14.isposable peonal ncme s h inom at osehods nd uncrpraed businss ha left ftr atifyi al teir obliations to the gvernmnt. I quaenal usersl ts and ctin n-tax aments tgoernmeANSWR：POINTS： /1.Thepuchase of newoes b householdsis includedintheccun of rsoa nstio epnitesof GD.NSWR:FPOINTS:0 / 1Multiple hceIdenty th choi tht bst cplets the sttementor answs the stion.1.WenGP als,a.inoean exendire mutbotalbicme andexpendiurecaboth ris.come ms fal， bt epeituremayis fall.dpndture mt fall， but income my rie or alNWER:POINTS:0/12.Income equas expenditure ecause.fislways payu ll their reveue as ince o someon.beah te a l ade, tereisa buye and aellr.chouehlds owthe factors of prduction usedto genee incomesd.Allofth above are crrectNSER:BPOINTS：0/13.f province akstheroducton ansaleofilcit drug leg，tenGPa.must icease.mustcreae.c.woudnt hane.d.may ncrease or decrese.NSWR:OINTS:0 /14.When agoerment provides ubsidies encoragothf smallbusiesss, he subiis would.e iclude in GDP bese thyrvstey busnesses.b.be includd nGP aus the aa fr f ovrnmntspenig.cnt eincludd iGDP becusethey re aer payent.d.ay ormay notbe inclde GDP, depedng o hwth fnds re usd.ANSER:CPOIN: /15Dieselfe isaalways cnsideredafinal god.couted as an ntermedite gdif copny us itt prvide tansporatn srvices.unted a ina good f afrer uses it to una tractor t rw cro.Bt ba cae crect.NSWER:BPOINT: / .ro domsic pouta.is the ark value of l final osand servies pducd wthin acuntry in a givnpro (saly ayear)b. theincmein tehands of ndiidls after educin incom txes; icme aailable t ushlds t spend ad saveis he vale of gods nd seices rhased by all elsooveent eeral, rovnial, nd localin a gin periodd.is the maktvalue o allfnlods and serviproducd y prmnntresdtso a nation in a gven time perioANSWE:POINTS: 7.Maroecoomics tha brancofecnomct stdiea.hecnins ofindivdalmarketsthe influene governmton individual arktc.econom-wi phenoenadolythpivateeto f the economyANSWR:PONS： 1.Supps tat nmia GD s ，00billion and real GP is$3,000. What the GP pi eflaor?a125.150c20.5SWER:CPINTS:0 .he rchas o fn goo andseric by huseolsis cleda.invesmentb.pub seto xndiurc.consumiond.netxorsNSWE：POTS: /110Inesmet is te urchase of caitalequipment, invtors, anda.tructuresb.no-durable odsc.drecationd.imprt inesmetANWER:APOINTS:0 / 111.Trasfpayments.are ilude i GDPbecause theareo ofincombare inuddin GP beae goods nd serviceshaen produced nthtranser.e NO nlude i theDPeaue gos adservcs have not bee roduc te transferd.areicdediGDP ease thy epsentt prduion tranfers of godand servcest foregncuniNSWR：CPOINS:0 / 12.hichof the followng od b considerd cnumptionexpendture？aThe Smi ya homeilt n 1990.bTe eeralgovernetpays te salaryofa capinin h rmed rces.c.Te sterby a nw cr th was manufaurdinemay.h gornment b ooforits armd orcesANSWR：CPOIN：0/ 11.The metho that meaures G in relationhip to the size of the ppulatin isclldaNPb.worker GPc.GDP er ersod.apitalGPNSWER:CPOINS:0/ 1.Th coonents GPara + +G.NX+ Cc + G +N.C +G+ NXASWE:POINT：0/115.Suppose nomaDP is $770ndtGP defltor1 Ral GDP is.$70b$700847，00.$8470SWER:BPOINT: /Srtnse.Whaare he compents of gross dmestic poduc （GP)?RESPOSE:NSWER:Thomnets of DPre: (1)coutin pndingy househlds onoodsandservces，withth excptin f purhaof ew husng; () nestnt sednon catal qpent， iventries, andstructurs, clding ousel prchases of new houig； （3)govermen purcaes or spending on goods and srvices by th loal， povicia,and fderal levels gvernets；ad () neexort whch isspengn dmstal roducedgoods andservice b foreignes (exps) insspeding ofeign goods nd sevics by oestic esidet (ir)POINTS：- / 12Diffeeniate betwee gross domesicprouct（DP) and gro tioalpu (GP).RESONE:ANWE:GPishe vlue of all final gods and ervic poduedwti contryin a givenear; wl GN i te total inoeearned y ntions peaent residets ornationals (htis, nadians). GNPdiffr froGP b includig inom ht cien ofte ation (anada） earned brd，and excuing noe ht freignerseni th paricar ontr （E.g. Cada)ONTS:- 13Diffreniatebetween rel G andnominal GDP.REPONE:ANWE:Nminl GDis theaue of a inal oods sercesprdud wihin acuntr in year and valed a crntprces； d real Gis th Gvaue at cosantasye prices Rel GP isot ffctedby chanes the eel of prics, so it elecs only changsn themount ingroduedPTS:- / 1.Exlnwhy GDP int considered perfect measur owell-being？RSPONSE:ANSWR:G s not coniered a peect aue f wbein caus m the fctos tt conribute t a ood li r mitd. Thsewold include:leisue tim, the qai f te nvirnment， thdtribuion of income, ndheprodcton food anserviceshat di notps though the market(for empl, houewok done by t heaer, and volunteerw）ONTS：- / 1Ho o econoist masre ecomc groth？RESPONE:NSWER:Eooists mese eoomi gtasepecentae chnge real GDP om one perd t nother This is because cages in ral P eflectonly cangs in the moun bg roduced.PONS：-/ 1CAPTR 4: MEASRIN HECOST OF LIINGTru/Falsencawther e satmet s tue or lseThe GDP eflator fect te pries f goods an servicesgh by cumers,nthe cnsme rice inde electstheprice f all fnl goo ndserices pouce domestially.ANSWR：FOIT:0 12.Te cosuer prce ndex comaes e pico a fixed ake o goodsn servies o the prcef heasket i the bayr.On teothe hn, the GDP defltr comprt rcocurrentroduced goos n sevices to te pric of the a ods nd services in thebas ears.NSWER:TPOINTS:0/ 3.Indationrfes tothe automatc crection adoll aontfo thffect o inltionby lw o otrct.ANSWE:POINTS: /14.Lon ter cntract etenfirmsad uionswill tmesinclud prial or comlete indexatinof the ge o te consumer pciex. Ths s cald cost-of-living alloce cluse.NSE:TOINTS:0 / 15.The cor ilatin rate s the cnsumer price id wththe exclusio the mot votile comonetssch as eegy and food.ASW：TPOIS:0 / 1Multipl CoiIdntify te chiethatb omle te steme o aswe the questio.In the CPI， odand srvices re wighteacdgohow uch a typical cosumer buys of eacie.whether the its re eessesorxuries.c.o h of eac iemi oced ihe mec ecnmd.o mh is spent nthem i th ationalncome ccont.ANSWER:APOITS:0 / 2.Bynot takin into account he psiblity conumer ubstituion， the PI.ndtatesh standard ofiing.rtatesthe costof living.nither ovstate or nersateste co f vig.d.doesnt acurately electhe cost ofliing, u it s unclearif t oersates orundestatesthecst o livig.NWER:BPINTS:0/ 3. h prics f Braiianmae shoes imorted io Cd incrss, thnaoth Caadas GD delatra its consumrpric ind wi icebnei Candas GD eflato nor isonsmerpice ndex will inceae.c.CanadasGDP defltor will incrasutts Iwil not inrease.d.Canadasonsumer price nde wll nas， bu tsGDPdeflarwotchag.ANSR:DINTS： /14.f increasesnte rics o ndn ca nsurane ce he I o incree by 3 percen, t GD defator wil ily nce ba.mo ha 3 perentb3 pcet.c.les thn 3 pecen.All te bovererec.ASWR:COINTS: / 1Te reaineerate els youahw uicklour avngsacont wil go.bow uily th urchsinoer of your savins accunt will grw.c.sie ofyousavings accontd.thurcasng poeof yr ins accon.ANSWER：PONT:0 / 6.Iflatio refes a. tempoary increase iteprice lev ue t hih ax ratesb.a lge icese in fod nd gaslie picesc.a tation in wh the ecomys veral price level is riingdanincase inthepurchsgper of th dollANSER：OTS:0/ 17.Inomi ereratesncras om 8percento 10 ecntwhie inlaioncrease f 3 pret t 1 ecnt.the real interst ratalls fro percnt to percnt.te relnterestrat ses ro2 perentto 5ercnc.the rinterestrae fals rom rcet o2 erentdhe ra iterst rate ises from 8 rcent to 1 peretASER:APTS：0 / 18.Ifthe omial rae of ineest i 10 rnt an he r f infation i3 pecent, what is rea rat o iters？.13 pecntb. percec.percentd7percentASWER:BPOITS:0 /19.Th consume prce e:.mears pic chages o ra mteriaajust all pris goos and servces for fie-yar priodscears te cos o goodad seice bog b tpcl conumerdcnot measur prie changes of intangileprouton sch icASWER:CPOINS:0 /11.f th consume pric index (CP)t te end o 1996 was12 and the CPI atheendof 97as 13, then the ratonflatio dung9 wasa.zero priceseresable duri 997.4.8 percentc6.0perctd.125 prcetANSWER:POITS：0 /11.Frank noinal ine i 198is$45,000. Supps theP 1998is 15. Wha is rans realinoe？a.$1，750b.$4,00c.$38,250d.$30，000NSW：DPOINTS:0 112.A change t pce of mports uht csumr ilb.eflect inthGDPdeftrb.reflced iDP.refced n te CPd.eectd nnet tinanceASWR:CPOINTS:0 / 113.All o the lowing but oe are rblem asociated wit the CPIa.substitution bas.he introctn e goods ndservicesc.nmeasured qlit cngesdTe CPI s n based oa fixed bat goods nd svicesANSWER:DPOINTS:0 / 114chof the fwing scorect?a.Th PI is notsed ona fixed basf goods and svices.bhe GDPefltor eflecsthe pries of al dmesticly produced goods and servies.c.TheGDP defto i ae on fedket f oods andservicesd.TeGD delatr is sujecto substiutions.ANSWR:PITS：0 / 15.The infltion ae.isa masreof thecot oa bat ofgoos ad vesoght byfimsb.isthe ablu chagin pries etenas he pcentage chagein the rce iex rom the prcirid.masur han in icoefrm one yr tote nextANSWER:CPOTS:0/ 1Short Aner.Wat isthe onsumer priceine (C)? Wha ae th three major itms incude in he CP？RSONSE：ANW:Te C is eaure oe overall cs o heods and seicesought by typiclconumer The threemjoritems inluded inthe CP are lte,trasotatonandfood.PONTS:- / 12. is the CPI comput？RESPONSE：ANSWE:Frst te bket of goodsadservces must edeemined and also the relativimportance of the vaostes e nclded n h asket Then the pres of theariositem in the basket are determined. The st o the bsket is then deeried usg thedata n rices quntitThe base yearis cose， and he indexfrhebas year is cmpted usingthe quantiie inte baset an base yer ries.Te ide calculated by taknghe ieo heasket in he ach year n ivdng thi by the prie of thebasket i e baeyer. Thiatoi tnmulplied by 10PITS:- 3.Differentatebetwen noal rate f inrestnd the ral re intreRESONE：ANSWER:Thnomina intest ate is e iterestrte sually reportd witout a orrecin fr the efects of iatio Th real intet ratei th interstrate orected for theffects o iflion. Therel interest rate = omnalinerest rte minu th iflatin rae.INTS:-/ 14.Watis meant y te nflatioate？ If he P in1996 as 107.6 and in 19 s 159, lculte theinflation rate fr96.RESPONSE:ANWE：Theifaion raeithe prcentagagein the rc inxfrom te prcdingperiod.he inlaratfr 1996 uldbe:POINTS：-15What aee rblemsssocited wtsing tecosumeprc dex tosr the cos o lii？RESPONS：ANSWER:The problm ae： (1)cesoot chagproriontly. Consumer respond buying less of the gods we rie hav rn by lrgamuntsaby buying morfthe oods hseice have rn yless,or evefllenTh ndex s couted usng a fixd baskt of tems, o thee changesin quantity would o berefleced inthe baske Th is efrredto th susitio ba. (2) The CPI s vopeduina ixed baset ofgoods nd ervies, hen nw podcsae intodued urng thetim eiod thaa partuar fxed baske is beig used,tese new podct l no inclded calclton of h dex. (3) Th C oe n measure quliycage. f hequaliyof a god eterortesrom neyea tothent, e alue ofhe dolla falls，eveit pice fthe good stay sameLeise, ithe uaity of tegd icrease fom oneear t e nt, the alu of a llar asorises. StatitcsCnd wil try to adjus theprce o thgoo o acn for the qualy cange, but it ivry diffi to mesre aity.POITS:- /1CAPTR 25: PODUCTNANGROWTrue/FlsIndicatewhether thestatement is true o fase1ne way to raise fuure pructivit isto ivs lesrnt resources inhe odcti captal.ANSWE:FPONTS:0 12.minisin eurns ocu when te bnetfromanetra nt ofoutputdecine astequantit of utputeclines.NSWER:FPOIS：0 / 1.Maltusian theytates hat n eer-incasng platinwldcotialy strain soietyability tproide foritsl. hisdome hua bngs to fevr ive pverty.ANSWER:TPOINTS： / 1Poductivty rowth s measuredby real oututper wkr.WR:POINTS:0/ 5.The primrreasonha liing tars ar higertoday hn here acentury ago sthat tchnological owlede hasdvacdANSWR:TNTS:0 / Mutile hoiIdentifyte choice hat bscomletes testatemt o ansers the uestn.O the follin coutre, whch grewth slowt ove t as 10 years?a.rail.b.exio.cSingapore.niedSates.ANSWER:POINTS: 12.On aerg,achya osclng rases psoswage i Cada b bouta.3 rct.b0 ercnt.15 pecnt.2 perentANSE：BPOINTS:/ 3The primaryreason thtCanadianivinstandards re higheodathan h were ery gois at.r prodctveaturalsuc avebendicoered.bhysia cpitalpe orkerhas ncreedc.echolgical knowedg hs increasddhum capia has incased.NSWER：CPOINTS：0 /14.May ounies in Afica hae ow rowt rae. his is pary d oa.wnatural resouresb.hig ade barirsc.lwnces,aking it very difficut othe t grow.All f he above a crec.ASWER:PONTS:0 / 15.A gernmtcn enourage gwth and, nth on un， riheecoo stdard ofvin by encourggappuaonrowth.bcosumpi peng.c.sagad invetment.d.trade rsictions.ANR：CPINTS: / 16.Diminishing eurns is th otintta.as th stk of cpita as, he ext output roducd decreaseb.s he toof apitl s icresd, t extraoutput prdu f n addiionunit of aptalfll. resourcesr ued o roe capitalgods，fwe additio apitalodscan be prducedyou aways et whaou pa orAWE:BPINT:0 7.Comparit richcounries， porercoutries are gnrally chrctery.high rea GDP eperobpoliticl stbilcapi populationgrowthdsongly nfrcedprper rhtsASWER：POITS：0 18.hich e o thfolowing counries wuld most likely beconsided a poorer aton,sigrDPprsn？.Canada.ermanyc.JapnndiASW：DOINTS: / 19.Which f e ollowingfactors u be most likly to encure capital fomai ina poorer atin?a.the epectatin ostinedigh rates of fation n thefureb.te xpectation at prope
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