曼昆宏觀經(jīng)濟學(xué)英語課后題答案

1、CHAPTER 23: MEASURING A NATIO NS INCOMETrue/FalseIndicate whether the statement is true or false.?1. The circular flow diagram describes all transactions between households and firms in a?simple economy and shows the equality of expenditures and income.ANSWER:? TPOINTS:? 0 / 1?2. Gross domestic prod

2、uct includes most items produced and sold illicitly.?ANSWER:? FPOINTS:? 0 / 1?3. Net national product is the total income of a nation s residents minus losses from?depreciation.ANSWER:? TPOINTS:? 0 / 1?4. Disposable personal income is the income that households and unincorporated business have ?left

3、 after satisfying all their obligations to the government. It equals personal incomeminus personal taxes and certain non-tax payments to government.ANSWER:? TPOINTS:? 0 / 1?5. The purchase of new houses by households is included in the calculation of personal?consumption expenditures of GDP.ANSWER:?

4、 FPOINTS:? 0 / 1Multiple ChoiceIdentify the choice that best completes the statement or answers the question.?1. When GDP falls,?a. income and expenditure must both fall.b. income and expenditure can both rise.c. income must fall, but expenditure may rise or fall.d. expenditure must fall, but income

5、 may rise or fall.ANSWER:? APOINTS:? 0 / 1?2. Income equals expenditure because?a. firms always pay out all their revenue as income to someone.b. each time a sale is made, there is a buyer and a seller.c. households own the factors of production used to generate incomes.d. All of the above are corre

6、ct.ANSWER:? BPOINTS:? 0 / 1?3. If a province makes the production and sale of illicit drugs legal, then GDP?a. must increase.b. must decrease.c. wouldnt change.d. may increase or decrease.ANSWER:? APOINTS:? 0 / 1?4. Whena government provides subsidies to encourage growth of small businesses, the sub

7、sidies ?woulda. be included in GDP because they are invested by businesses.b. be included in GDP because they are a form of government spending.c. not be included in GDP because they are transfer payments.d. may or may not be included in GDP, depending on how the funds are used.ANSWER:? CPOINTS:? 0

8、/ 1?5. Diesel fuel is?a. always considered a final good.b. counted as an intermediate good if a company uses it to provide transportation services.c. counted as a final good if a farmer uses it to run a tractor to grow crops.d. Both b and c are correct.ANSWER:? BPOINTS:? 0 / 1?6. Gross domestic prod

9、uct?a. is the market value of all final goods and services produced within a country ina given period (usually a year)b. is the income in the hands of individuals after deducting income taxes; income available to households to spend and savec. is the value of goods and services purchased by all leve

10、ls of government federal, provincial, and local in a given periodd. is the market value of all final goods and services produced by permanent residents of a nation in a given time periodANSWER:? APOINTS:? 0 / 1?7. Macroeconomics is that branch of economics that studies?a. the conditions of individua

11、l marketsb. the influence of governments on individual marketsc. economy-wide phenomenad. only the private sector of the economyANSWER:? CPOINTS:? 0 / 1?8. Suppose that nominal GDP is $6,000 billion and real GDP is $3,000. What is the GDP price ?deflator?a. 125b. 150c. 200d. 250ANSWER:? CPOINTS:? 0

12、/ 1?9. The purchase of final goods and services by households is called?a. investmentb. public sector expenditurec. consumptiond. net exportsANSWER:? CPOINTS:? 0 / 1?10Investment is the purchase of capital equipment, inventories, and.? a. structuresb. non-durable goodsc. depreciationd. import invest

13、mentANSWER:? APOINTS:? 0 / 1?11Transfer payments.? a. are included in GDP because they are forms of incomeb. are included in GDP because goods and services have been produced in the transferc. are NOT included in the GDP because goods and services have not been produced in the transferd. are include

14、d in GDP because they represent the production of transfers of goods and services to foreign countriesANSWER:? CPOINTS:? 0 / 1?12Which of the following would be considered consumption expenditure?.? a. The Smiths buy a home built in 1990.b. The federal government pays the salary of a captain in the

15、Armed Forces.c. The Hostlers buy a new car that was manufactured in Germany.d. The government buys food for its armed forces.ANSWER:? CPOINTS:? 0 / 1?13The method that measures GDP in relationship to the size of the population is called.?a. GNPb. worker GDPc. GDP per persond. capital GDPANSWER:? CPO

16、INTS:? 0 / 1?14The components of GDP are.?a. C + I + Gb. NX + G + Cc. C + G + NXd. C + I + G + NXANSWER:? DPOINTS:? 0 / 1?15Suppose nominal GDP is $7700 and the GDP deflator is 110. Real GDP is.? a. $7700 b. $7000 c. $847,000 d. $8470 ANSWER:? B POINTS:? 0 / 1 Short Answer?1. What are the components

17、 of gross domestic product (GDP)? ?RESPONSE:?ANSWER:? The components of GDP are: (1) consumption spending by households on goods and services, with the exception of purchases of new housing; (2) Investment spending on capital equipment, inventories, and structures, including household purchases of n

18、ew housing; (3) government purchases or spending on goods and services by the local, provincial, and federal levels governments; and (4) net exports which is spending on domestically produced goods and services by foreigners (exports) minus spending on foreign goods and services by domestic resident

19、 (imports).POINTS:? - / 1?2. Differentiate between gross domestic product (GDP) and gross national product (GNP). ?RESPONSE:?ANSWER:? GDP is the value of all final goods and services produced within a country in a given year; while GNPis the total income earned by a nation s permanent residents or n

20、ationals (that is, Canadians). GNPdiffers from GDPby including income that citizens of the nation (Canada) earned aboard, and excluding income that foreigners earn in the particular country . in Canada).POINTS:? - / 1?3. Differentiate between real GDP and nominal GDP. ?RESPONSE:?ANSWER:? Nominal GDP

21、 is the value of all final goods and services produced within a country in a year and valued at current prices; and real GDPis the GDPvalued at constant base year prices.? Real GDPis not affected by changes in the level of prices, so it reflects only changes in the amounts being produced.POINTS:? -

22、/ 1?4. Explain why GDP is not considered a perfect measure of well- being? ?RESPONSE:?ANSWER:? GDP is not considered a perfect measure of well-being because some of the factors that contribute to a good life are omitted.? These would include: leisure time, the quality of the environment, the distrib

23、utionof income, andthe production of goods and services that did not pas through the market (for example, housework done by the homemaker, and volunteer work)POINTS:? - / 1?5. How do economists measure economic growth? ?RESPONSE:?ANSWER:? Economists measure economic growth as the percentage change i

24、n real GDP from one period to another. This is because changes in real GDPreflect only changes in the amounts being produced.POINTS:? - / 1CHAPTER 24: MEASURING THE COST OF LIVINGTrue/FalseIndicate whether the statement is true or false.?1. The GDP deflator reflects the prices of goods and services

25、bought by consumers, ?and the?consumer price index reflects the price of all final goods and services produced domestically.ANSWER:? FPOINTS:? 0 / 1?2. 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. On the other hand,

26、the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the base years.ANSWER:? TPOINTS:? 0 / 1?3. Indexation refers to the automatic correction of a dollar amount for the effects of inflation ?by law or contract.ANSWER:? TPOINTS:?

27、0 / 1?4. Long term contracts between firms and unions will sometimes include partial or complete?indexation of the wage to the consumer price index. This is called a cost-of-living allowance clause.ANSWER:? TPOINTS:? 0 / 1?5. The core inflation rate is the consumer price index with the exclusion of

28、the most volatile ?components such as energy and food.ANSWER:? TPOINTS:? 0 / 1Multiple ChoiceIdentify the choice that best completes the statement or answers the question.?1. In the CPI, goods and services are weighted according to?a. how much a typical consumer buys of each item.b. whether the item

29、s are necessities or luxuries.c. how much of each item is produced in the domestic economy.d. how much is spent on them in the national income accounts. ANSWER:? APOINTS:? 0 / 1?2. By not taking into account the possibility of consumer substitution, the CPI?a. understates the standard of living.b. o

30、verstates the cost of living.c. neither overstates nor understates the cost of living.d. doesnt accurately reflect the cost of living, but it is unclear if it overstates or understates the cost of living.ANSWER:? BPOINTS:? 0 / 1?3.If the prices of Brazilian-made shoes imported into Canada increases,

31、 then?a. both Canada s GDP deflator and it s consumer price index will increase.b. neither Canada s GDP deflator nor it s consumer price index will increase.c. Canada s GDP deflator will increase butits CPI will not increase.d. Canada s consumer price index will increase, but its GDP deflator won t

32、change.ANSWER:? DPOINTS:? 0 / 1?4. If increases in the prices of Canadian car insurance causes the CPI to increase by 3 percent, ?the GDP deflator will likely increase bya. more than 3 percent.b. 3 percent.c. less than 3 percent.d. All of the above are correct.ANSWER:? CPOINTS:? 0 / 1?5. The real in

33、terest rate tells you?a. how quickly your savings account will grow.b. how quickly the purchasing power of your savings account will grow.c. the size of your savings account.d. the purchasing power of your savings account.ANSWER:? BPOINTS:? 0 / 1?6. Inflation refers to?a. a temporary increase in the

34、 price level due to higher tax ratesb. a large increase in food and gasoline pricesc. a situation in which the economys overall price level is risingd. an increase in the purchasing power of the dollarANSWER:? CPOINTS:? 0 / 1?7. If nominal interest rates increase from 8 percent to 10 percent while i

35、nflation increases?from 3 percent to 12 percenta. the real interest rate falls from 5 percent to2 percentb. the real interest rate rises from- 2 percent to 5 percentc. the real interest rate falls from 8 percent to 12 percentd. the real interest rate rises from 8 percent to 12 percentANSWER:? APOINT

36、S:? 0 / 1?8. If the nominal rate of interest is 10 percent and the rate of inflation is 3 percent, what?is the real rate of interest?a. 13 percentb. 7 percentc. 3 percentd. 7 percentANSWER:? BPOINTS:? 0 / 1?9. The consumer price index:a. measures price changes of raw materialsb. adjusts all prices o

37、f goods and services for five-year periodsc. measures the cost of goods and services bought by a typical consumerd. cannot measure price changes of intangible production such as services ANSWER:? CPOINTS:? 0 / 1?10If the consumer price index (CPI) at the end of 1996 was 125 and the CPI at the end of

38、 1997.? was 131, then the rate of inflation during 1997 wasa. zero - prices were stable during 1997b. percentc. percent d. 125 percentANSWER:? BPOINTS:? 0 / 1?11 Franks nominal income in 1998 is $45,000. Suppose the CPI in 1998 is 150. What is Franks.? real income?a. $51,750b. $45,000c. $38,250d. $3

39、0,000ANSWER:? DPOINTS:? 0 / 1?12A change in the price of imports bought by consumers will be.? a. reflected in the GDP deflatorb. reflected in GDPc. reflected in the CPId. reflected in net national incomeANSWER:? CPOINTS:? 0 / 1?13All of the following but one are problems associated with the CPI .?

40、a. substitution biasb. the introduction of new goods and servicesc. unmeasured quality changesd. The CPI is not based on a fixed basket of goods and servicesANSWER:? DPOINTS:? 0 / 1?14Which of the following is correct?.? a. The CPI is not based on a fixed basket of goods and services.b. The GDPdefla

41、tor reflects the prices of all domestically produced goods and services.c. The GDP deflator is based on a fixed basket of goods and services.d. The GDP deflator is subject to substitution bias.ANSWER:? BPOINTS:? 0 / 1?15The inflation rate.? a. is a measure of the cost of a basket of goods and servic

42、es bought by firmsb. is the absolute change in prices between yearsc. is the percentage change in the price index from the preceding periodd. measures changes in incomes from one year to the next ANSWER:? CPOINTS:? 0 / 1Short Answer?1. What is the consumer price index (CPI)? What are the three major

43、 items included in the CPI? ?RESPONSE:?ANSWER:? The CPI is a measure of the overall cost of the goods and services bought by a typical consumer. The three major items included in the CPI are shelter, transportation and food.POINTS:? - / 1?2. How is the CPI computed?RESPONSE:?ANSWER:? First the baske

44、t of goods and services must be determined and also the relative importance of the various items to be included in the basket. Then the prices of the various items in the basket are determined. The cost of the basket is then determined using the data on prices and quantity. The base year is chosen,

45、and the index for the base year is computed using the quantities in the basket and the base year prices. The index is calculated by taking the price of the basket in the each year and dividing this by the price of the basket in the base year. This ratio is then multiplied by 100.POINTS:? - / 1?3. Di

46、fferentiate between the nominal rate of interest and the real rate of interest. ?RESPONSE:?ANSWER:? The nominal interest rate is the interest rate as usually reported without a correction for the effects of inflation. The real interest rate is the interest rate corrected for the effects of inflation

47、. The real interest rate = nominal interest rate minus the inflation rate.POINTS:? - / 1?4. What is meant by the inflation rate? If the CPI in 1996 was and in 1995 was , calculate ?the inflation rate for 1996.RESPONSE:?ANSWER:? The inflation rate is the percentage change in the price index from the

48、preceding period.? The inflation rate for 1996 would be:POINTS:? - / 1?5. What are the problems associated with using the consumer price index to measure the cost of ?living?RESPONSE:?ANSWER:? The problems are: (1) Prices do not change proportionately. Consumers respond by buying less of the goods w

49、hose prices have risen by large amounts and by buying more of the goods whose price have risen by less, or even fallen. The index is computed using a fixed basket of items, so theses changes in quantity would not be reflected in the basket. This is referred to as the substitution bias. (2) The CPI i

50、s developed using a fixed basket of goods and services, when new productsare introduced during the time period that a particular fixed basket is beingCHAPTused, these new products will not be included in calculation of the index. (3)ER 25:The CPI does not measure quality changes. If the quality of a

51、 good deteriorates PRODU from one year to the next, the value of the dollar falls, even if the price ofCTIONthe good stays the same. Likewise, if the quality of the good increases fromANDone year to the next, the value of a dollar also rises. Statistics Canada willGROWTtry to adjust the price of the

52、 good to account for the quality change, but itHis very difficult to measure quality.POINTS:? - / 1True/FalseIndicate whether the statement is true or false.?1. One way to raise future productivity is to invest less current resources in the production ?of capital.ANSWER:? FPOINTS:? 0 / 1?2. Diminish

53、ing returns occur when the benefits from an extra unit of output declines as the ?quantity of output declines.ANSWER:? FPOINTS:? 0 / 1?3. Malthusian theory states that an ever-increasing population would continually strain?society s ability to provide for itself. This doomed human beings to forever

54、live in poverty.ANSWER:? TPOINTS:? 0 / 1?4. Productivity growth is measured by real output per worker.?ANSWER:? TPOINTS:? 0 / 1?5. The primary reason that living standards are higher today than they were a century ago?is that technological knowledge has advanced.ANSWER:? TPOINTS:? 0 / 1Multiple Choi

55、ceIdentify the choice that best completes the statement or answers the question.?1. Of the following countries, which grew the slowest over the last 100 years?a. Brazil.b. Mexico.c. Singapore.d. United States.ANSWER:? DPOINTS:? 0 / 1?2. On average, each year of schooling raises a persons wage in Can

56、ada by about ?a. 3 percent.b. 10 percent.c. 15 percent.d. 25 percent. ANSWER:? B POINTS:? 0 / 1?3.The primary reason that Canadian living standards are higher today than they were a century?ago is thata. more productive natural resources have been discovered.b. physical capital per worker has increa

57、sed.c. technological knowledge has increased.d. human capital has increased.ANSWER:? CPOINTS:? 0 / 1?4. Many countries in Africa have low growth rates. This is partly due to ?a. few natural resourcesb. high trade barriers.c. low incomes, making it very difficult for them to grow.d. All of the above are correct.ANSWER:? BPOINTS:? 0 / 1?5. A government can encourage growth and, in the long run, raise the economy s standard of ?living by encouraginga.