1. How should Robert's contributions to GDP be calculated?
   1. using his income, not his expenditure
   2. using his expenditure, not his income
   3. using both his income and his expenditure
   4. using either his income or his expenditure, but not both

1. According to the simple circular-flow model, which of the following do firms buy from households?
   1. natural resources, such as oil and minerals
   2. goods and services
   3. inventions and innovations
   4. factors of production

1. Which of the following is NOT included in GDP?
   1. goods produced abroad by Canadian citizens
   2. services such as those provided by lawyers and hairstylists
   3. final goods that are produced but not sold by the end of the year
   4. production of foreign citizens living in Canada

1. The local Kia dealership made 30 cars in 2019. How will the sale of all 30 cars in 2020 affect the GDP?
   1. The value of the cars will be counted as part of GDP in 2019, but not in 2020.
   2. The value of the cars will not affect the 2019 GDP but will be included in 2020 GDP.
   3. The value of the cars will be included in both 2019 and 2020 GDP.
   4. The value of the cars will not be included in GDP in 2019 or 2020.

1. If an economy's nominal GDP doubles and the real GDP doubles, what will happen to the GDP deflator?
   1. It will stay the same.
   2. It will double.
   3. It will triple.
   4. It will quadruple.

1. A country reported a nominal GDP of $100 billion in 2012 and $70 billion in 2011 and reported a GDP deflator of 125 in 2012 and 120 in 2011. What happened to real GDP and price level from 2011 to 2012?
   1. Real GDP and price level both rose.
   2. Real GDP rose and price level fell.
   3. Real GDP fell and price level rose.
   4. Real GDP and price level both fell.

1. GDP is used as the basic measure of a society's economic well-being. What is a better measure of the economic well-being of individuals in society?
   1. GDP per capita
   2. the consumption component of GDP
   3. government expenditures per capita
   4. the level of business investment

1. How does a rise in the consumer price index affect a typical family?
   1. The typical family has to spend more dollars to maintain the same standard of living.
   2. The typical family can spend fewer dollars to maintain the same standard of living.
   3. The typical family finds that its standard of living is not affected.
   4. The typical family can offset the effects of rising prices by saving more.

1. If the prices of shoes made in France imported into Canada increase, what happens to the GDP deflator and the CPI of Canada?
   1. The GDP deflator does not change, the CPI decreases.
   2. The GDP deflator decreases, the CPI increases.
   3. The GDP deflator and the CPI decrease.
   4. The GDP deflator does not change, the CPI increases.

1. Ralph puts money in the bank and earns a 5 percent nominal interest rate. What happens if the inflation rate is 3 percent?
   1. Ralph will have 3 percent more money, which will purchase 2 percent more goods.
   2. Ralph will have 3 percent more money, which will purchase 8 percent more goods.
   3. Ralph will have 5 percent more money, which will purchase 2 percent more goods.
   4. Ralph will have 5 percent more money, which will purchase 8 percent more goods.

1. In Japan in 2000, nominal interest rates were 1.5 percent, and the inflation rate was -0.5 percent. What was the real interest rate?
   1. -2 percent
   2. -1 percent
   3. 1 percent
   4. 2 percent

1. Suppose in 2020, real GDP in Latania was $690 million and the population was 3 million. In 2021, real GDP was $990 million, and the population was 4 million. What was the approximate growth rate of real GDP per person?
   1. 11 percent
   2. 14.5 percent
   3. 17.0 percent
   4. 7.61 percent

1. Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?
   1. A country with few or no domestic natural resources is destined to be poor.
   2. Differences in natural resources have virtually no role in explaining differences in standards of living.
   3. Some countries can be rich mostly because of their natural resources, and countries without natural resources need not be poor, but can never have very high standards of living.
   4. Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.

1. In 2000 in the United Kingdom, the adult population was about 46.5 million, the labour force participation rate was 63.5 percent, and the unemployment rate was 5.8 percent. What was the approximate number of people unemployed?
   1. 3.7 million
   2. 2.7 million
   3. 1.7 million
   4. 0.7 million

1. Matt loses his job and decides to sit around at home for a few months. Assuming that other things remain the same, what happens to the labour force?
   1. The labour force decreases
   2. The labour force increases
   3. The labour force is unchanged
   4. The labour force follows the unemployment rate