Question : 21) The term “investment” in macroeconomics means A) the total amount : 1384354

21) The term “investment” in macroeconomics means

A) the total amount of capital goods in the country.

B) the production of goods for immediate consumption.

C) the same thing as profits.

D) the production of goods not for immediate consumption use.

E) money spent in markets for financial capital.

22) To calculate GDP from the expenditure side, one must add together

A) wages, profits, government purchases and net exports.

B) consumption, government purchases, and interest.

C) wages, rent, interest, and profits.

D) consumption, investment, government purchases, and net exports.

E) consumption, investment, government purchases, and exports.

23) GDP from the expenditure side is equal to the sum of

A) Ca + Ia + Ga + (IMa – Xa).

B) Ca + Ia + Ga – net exports.

C) Ca + Ia + Ga + (Xa – IMa).

D) Ca + Ia + Ga.

E) Ca + Ia + net exports.

24) Which of the following purchases by households is considered as consumption expenditure for the purposes of national-income accounting?

A) legal services

B) a new house

C) a Government of Canada Treasury bill

D) tractors for use on a family farm

E) the purchase of company stock

25) Which of the following would be included in the consumption expenditure component of GDP?

A) export sales of snowmobiles

B) government expenditure for highway construction

C) the increase in inventories at lumber mills

D) expenditure by a firm for architectural services

E) a municipal government’s purchase of new desks for city council chambers

26) When calculating GDP from the expenditure side, Ga comprises

A) only expenditures made by the federal government.

B) government purchases of goods and services, excluding transfer payments.

C) only purchases of goods and not services.

D) only expenditures made by provincial and local governments.

E) government expenditures on goods and services, including transfer payments.

27) In national-income accounting, a rise in Ga will be recorded (other things being equal) if

A) labour productivity in the government sector rises.

B) output of government-produced goods and services increases.

C) the total salaries paid to civil servants rise.

D) wages in the government sector fall.

E) the government’s purchases of office furniture falls.

28) In national-income accounting, a fall in Ga (other things being equal) will be recorded if

A) labour productivity in the government sector falls.

B) the true market value of government-produced goods and services decreases.

C) wages in the government sector rise.

D) the Canadian armed forces reduces the size of the army.

E) the number of employed civil servants increases, but total government salaries remains unchanged.

29) Suppose a government collects $12 billion in various tax revenues, and pays $2.5 billion in debt interest, $9 billion in social security benefits, and $0.5 billion in government employee wages. What is the direct contribution to GDP coming from this government’s fiscal actions?

A) $0.5 billion

B) $2.5 billion

C) $3.0 billion

D) $11.5 billion

E) $12.0 billion

30) In macroeconomics, the term “capital goods” refers to

A) the financial resources necessary to start a firm.

B) man-made factors of production, such as tools, machines, and factory buildings.

C) money.

D) stocks and bonds.

E) all factors of production.