Question : 71) Changes in productivity can be analyzed by looking at : 1384348

71) Changes in productivity can be analyzed by looking at how GDP per employed worker changes over time or how GDP per hour worked changes over time. Why might one measure be more preferable than the other?

A) GDP per hour worked is preferable because it eliminates the need to adjust for variations in productivity between employed workers.

B) GDP per employed worker is more accurate because the data available on the number of employed workers is more accurate than the data available on the number of hours worked.

C) GDP per hour worked is more accurate because the average number of hours worked per employed worker has changed over time.

D) GDP per employed worker is preferable because the number of employed workers has risen significantly over time.

E) Both measures are equally good.

72) What is the approximate measure (2011 data) of Canada’s productivity in terms of real GDP per hour worked (expressed in 2012 dollars)?

A) $10

B) $92

C) $200

D) $475

E) $45

73) Why is real income for an average Canadian today so much higher than it was for an average Canadian 100 years ago?

A) Because of the increase in the labour force due to rising population, immigration and the increase in female labour-force participation.

B) Primarily because productivity per worker is so much higher today than in the past.

C) Because inflation has been maintained at relatively low levels throughout that time.

D) Because free-trade agreements have vastly increased real incomes.

E) Because the life span of the average worker has increased from about 55 years to about 80 years over that time period.

74) A change in the Consumer Price Index measures

A) a change in a specific absolute price.

B) a change in quantities of commodities sold.

C) a change in relative prices.

D) a change in a broad average price over some particular time span.

E) the change in gross domestic product.

75) Inflation, the rate of change of average prices in the economy, generally

A) benefits creditors if it is unanticipated.

B) has no real effects if it is unanticipated.

C) increases the purchasing power of money.

D) reduces the real value of existing nominal debt.

E) increases the real value of fixed money incomes.

76) Suppose an employer and its employees enter into a wage contract specifying a wage increase of 2%. But suppose that the price level rises by 3% over the course of the contract. In this case,

A) the employees’ purchasing power will rise.

B) the employees’ purchasing power will fall.

C) the employer will experience a greater fall in purchasing power than would have occurred if the price level had held steady.

D) both employer and employees will benefit from increased purchasing power.

E) both employer and employees will experience a loss of purchasing power.

77) If nominal national income increased by 10% over a certain period of time while real national income increased by 20%, then

A) everybody in the economy became worse off.

B) inflation has occurred during this time period.

C) the labour force increased by 10%.

D) the price level has declined by about 10%.

E) the price level has increased by approximately 10%.

78) If nominal national income increased by 20% over a certain period of time while real national income increased by 10%, then

A) everybody in the economy became worse off.

B) inflation has decreased during this time period.

C) the labour force increased by 10%.

D) the price level has declined by about 10%.

E) the price level has increased by approximately 10%.

79) If a country is experiencing inflation, the change in the nominal national product will

A) equal the change in the real national product.

B) overstate the inflation rate.

C) overstate the change in the real value of production.

D) understate the value of national income.

E) be negative and will be falling faster than the rate of inflation.

80) Economic theory argues that there will be fewer real effects from inflation as long as the

A) actual rate of inflation is less than 5%.

B) anticipated rate of inflation is more than the actual rate of inflation.

C) anticipated rate of inflation is less than the actual rate of inflation.

D) inflation is fully anticipated and no one changes their behaviour.

E) whole private sector is unaware that it is happening.