Macroeconomics, Cdn. 4e (Williamson)
Chapter 1 Introduction
1) Which of the following topics is a primary concern of macro economists?
A) standards of living of individuals
B) choices of individual consumers and firms
C) short-run growth models
D) relative wages of skilled and unskilled workers
E) fluctuations in the level of aggregate economic activity
Answer: E
Type: MC Page Ref: P. 2
2) Primarily, macroeconomists use microeconomic principles to study
A) business cycles and trends in the stock market.
B) long-run economic growth and business cycles.
C) trends in the stock market and long-term economic growth.
D) long-run economic growth and employment policies.
E) short run and long run economic growth.
Answer: B
Type: MC Page Ref: P. 3
3) Gross Domestic Product is
A) the quantity of goods and services produced within a country's borders during some
specified period of time.
,B) the quantity of goods produced by Canadian residents domestically and abroad during
some specific period of time.
C) the quantity of goods produced within a country's borders during some specific period
of time.
D) the aggregate quantity of income earned by consumers who have jobs during some
specified period of time.
E) the quantity of goods and services produced by Canadian residents domestically and
abroad during some specific period of time.
Answer: A
Type: MC Page Ref: P. 3
4) Since 1870 in Canada, there has been
A) sustained economic growth until the Great Depression followed by little growth since.
B) sustained economic growth.
C) too many business cycles to sustain economic growth.
D) GDP measured in 2002 dollars is largely unchanged.
E) only small growth in average incomes.
Answer: B
Type: MC Page Ref: P. 3
,5) Business cycles in macroeconomics are
A) the increase in a nation's productive capacity over a long period of time.
B) the economic interrelationships among nations.
C) changes in the average standard of living over time.
D) short-run ups and downs in aggregate economic activity.
E) profits and losses of firms.
Answer: D
Type: MC Page Ref: P. 3
6) Since 1870, the typical Canadian
A) became ten-times as rich.
B) remained equally as rich.
C) remained as rich as the typical American.
D) became twice as rich.
E) became almost fourteen-times as rich.
Answer: E
Type: MC Page Ref: P. 3
7) The two key business cycle events in Canadian economic history were
A) government budget deficits and World War II.
B) the Great Depression and government budget deficits.
C) World War II and the Great Depression.
D) the Great Depression and stagflation.
E) the productivity slowdown and the Great Depression.
Answer: C
, Type: MC Page Ref: P. 3
8) Which of the following is a fundamental question of macroeconomics?
A) What causes sustained economic growth?
B) How should a labour contract be structured?
C) How should governments be elected?
D) What causes the health care industry to prosper?
E) What is the effect of penalties on crime?
Answer: A
Type: MC Page Ref: P. 4
9) Which of the following is a fundamental question of macroeconomics?
A) What is the impact of government provided health care?
B) How should governments be elected?
C) What mechanism could force people to pollute less?
D) Where is the stock market heading?
E) Should governments act to smooth business cycles?
Answer: E
Type: MC Page Ref: P. 4
Chapter 1 Introduction
1) Which of the following topics is a primary concern of macro economists?
A) standards of living of individuals
B) choices of individual consumers and firms
C) short-run growth models
D) relative wages of skilled and unskilled workers
E) fluctuations in the level of aggregate economic activity
Answer: E
Type: MC Page Ref: P. 2
2) Primarily, macroeconomists use microeconomic principles to study
A) business cycles and trends in the stock market.
B) long-run economic growth and business cycles.
C) trends in the stock market and long-term economic growth.
D) long-run economic growth and employment policies.
E) short run and long run economic growth.
Answer: B
Type: MC Page Ref: P. 3
3) Gross Domestic Product is
A) the quantity of goods and services produced within a country's borders during some
specified period of time.
,B) the quantity of goods produced by Canadian residents domestically and abroad during
some specific period of time.
C) the quantity of goods produced within a country's borders during some specific period
of time.
D) the aggregate quantity of income earned by consumers who have jobs during some
specified period of time.
E) the quantity of goods and services produced by Canadian residents domestically and
abroad during some specific period of time.
Answer: A
Type: MC Page Ref: P. 3
4) Since 1870 in Canada, there has been
A) sustained economic growth until the Great Depression followed by little growth since.
B) sustained economic growth.
C) too many business cycles to sustain economic growth.
D) GDP measured in 2002 dollars is largely unchanged.
E) only small growth in average incomes.
Answer: B
Type: MC Page Ref: P. 3
,5) Business cycles in macroeconomics are
A) the increase in a nation's productive capacity over a long period of time.
B) the economic interrelationships among nations.
C) changes in the average standard of living over time.
D) short-run ups and downs in aggregate economic activity.
E) profits and losses of firms.
Answer: D
Type: MC Page Ref: P. 3
6) Since 1870, the typical Canadian
A) became ten-times as rich.
B) remained equally as rich.
C) remained as rich as the typical American.
D) became twice as rich.
E) became almost fourteen-times as rich.
Answer: E
Type: MC Page Ref: P. 3
7) The two key business cycle events in Canadian economic history were
A) government budget deficits and World War II.
B) the Great Depression and government budget deficits.
C) World War II and the Great Depression.
D) the Great Depression and stagflation.
E) the productivity slowdown and the Great Depression.
Answer: C
, Type: MC Page Ref: P. 3
8) Which of the following is a fundamental question of macroeconomics?
A) What causes sustained economic growth?
B) How should a labour contract be structured?
C) How should governments be elected?
D) What causes the health care industry to prosper?
E) What is the effect of penalties on crime?
Answer: A
Type: MC Page Ref: P. 4
9) Which of the following is a fundamental question of macroeconomics?
A) What is the impact of government provided health care?
B) How should governments be elected?
C) What mechanism could force people to pollute less?
D) Where is the stock market heading?
E) Should governments act to smooth business cycles?
Answer: E
Type: MC Page Ref: P. 4
