Question : 41) In national-income accounting, government expenditures the salaries of civil : 1384356

41) In national-income accounting, government expenditures on the salaries of civil servants are included at 

A) their imputed market value.

B) the market value of the goods and services they produce.

C) their after-tax salaries.

D) their pre-tax salaries, or factor incomes.

E) opportunity cost.

42) Transfer payments are excluded from the government component in the calculation of GDP because

A) they do not represent the purchase of a good or a service.

B) they are not counted as income by any economic agent.

C) they do not generate additional income in the economy.

D) it is difficult to assess the market value of a transfer payment.

E) they are small enough to ignore when computing the national accounts.

43) Consider Canada’s national accounts. An example of a transfer payment is

A) government payments of salaries to schoolteachers.

B) government spending on military equipment.

C) pensions paid from the Canada Pension Plan.

D) private firms’ payments of dividends.

E) government payments of salaries to Members of Parliament.

44) When calculating GDP from the expenditure side, “actual consumption expenditures” includes

A) the purchase of a new house.

B) American tourists travelling to and spending in Canada.

C) increases in automobile inventories.

D) the construction of an apartment building.

E) the monthly rental of an apartment.

45) When calculating GDP from the expenditure side, “actual consumption expenditures” includes

A) a tractor purchased by an Ontario farmer.

B) fees paid by Google Canada to a Toronto law firm.

C) robotic paint equipment purchased by Bombardier.

D) snow-plow equipment purchased by the City of Montreal.

E) Canadian fashion designs purchased by a Swiss department store.

46) Which of the following would be classified as “investment” in the national income and product accounts?

A) the purchase of a government bond

B) the purchase of Telus stock

C) the construction of a new factory

D) the payment of real-estate fees

E) the holding of money

47) Suppose that in 2012, ABC Corporation produced $6 million worth of natural gas pipes but was able to sell only $5 million worth. Is the remaining $1 million of unsold pipes part of GDP for 2012?

A) Yes, since changes in inventories are part of consumption expenditures.

B) Yes, since they are part of the economy’s output in 2012.

C) No, since changes in inventories are part of actual investment.

D) No, since they are part of the economy’s output only when sold.

E) No, since they are added to existing inventories.

48) Suppose that in 2012, Canada Cars Corporation produced $20 million worth of cars and trucks but was able to sell only $16 million worth. Is the remaining $4 million increase in inventories part of GDP for 2012?

1. Yes, since changes in inventories are part of consumption expenditures.

2. Yes, since they are part of the economy’s output in 2012.

3. Yes, since changes in inventories are part of actual investment.

A) 1 only

B) 2 only

C) 3 only

D) both 1 and 2

E) both 2 and 3

49) In national-income accounting, changes in inventories are

A) classified as part of current actual investment.

B) included under actual consumption expenditures.

C) referred to as intermediate goods.

D) described as actual fixed investment.

E) not included in the national accounts.

50) When computing GDP from the expenditure side, which of the following items is excluded from the government component?

A) employment-insurance benefits

B) salaries to Canadian Forces officers

C) costs of Parliamentary Committees

D) rental of office space by the government

E) operating costs of the Canadian Coast Guard