Canadian Economy
Chapter Exam Questions
Course Introduction
This course provides a comprehensive overview of the Canadian economy, exploring its structure, key sectors, and major trends. Students will examine the historical development of Canada's economic system, its natural resource base, and the role of government policy in shaping economic outcomes. Key topics include economic growth and productivity, trade relations (particularly with the United States), fiscal and monetary policy, labor markets, and regional economic disparities within Canada. The course also addresses current challenges such as globalization, technological change, and environmental sustainability, providing students with the analytical tools to understand and evaluate economic issues facing Canada today.
Recommended Textbook
Macroeconomics Canada in the Global Environment 8th Edition by Michael Parkin
Available Study Resources on Quizplus
15 Chapters
1897 Verified Questions
1897 Flashcards
Source URL: https://quizplus.com/study-set/1534 Page 2
Chapter : 1 What Is Economics
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/30321
Sample Questions
Q1) Which of the following is a positive statement?
A)Low rents restrict the supply of housing.
B)Low rents are better for a city than high rents.
C)Housing costs too much.
D)Owners of apartment buildings ought to be free to charge whatever rent they want.
E)Government should control the rents that apartment owners charge.
Answer: A
Q2) The slope of the line in Figure 1A.3.7 is
A)1.
B)-1.
C)1/2.
D)2.
E)dependent on where you measure it.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: The Economic Problem
Available Study Resources on Quizplus for this Chatper
143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/30328
Sample Questions
Q1) If opportunity costs are increasing,then the production possibilities frontier
A)will be bowed out and have a positive slope.
B)will be positively sloped.
C)will be linear and have a negative slope.
D)will be bowed out and have a negative slope.
E)reflects the fact that available resources are equally useful in all production activities.
Answer: D
Q2) In Figure 2.2.1,the curve labelled A is the ________ curve and the curve labelled B is the ________ curve.
A)marginal cost; marginal benefit
B)marginal cost; trade
C)marginal benefit; trade
D)production possibilities; trade
E)marginal benefit; marginal cost
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Demand and Supply
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/30329
Sample Questions
Q1) Initially,the demand curve for good A is D2 in Figure 3.5.1.Suppose good B is a substitute for good A.If the price of B falls
A)the price of A will rise.
B)there will be a surplus of good A at P2.
C)the demand curve for good A will shift from D2 to D3.
D)the equilibrium quantity of good A will increase.
E)all of the above are true except B.
Answer: B
Q2) The y- axis intercept of the supply curve is 40 and the slope is 6.The equation of the supply curve is ________.
A)P = 3 + 40QS
B)P = 40 + 6QS
C)P = 40 - 6QS
D)QS = 40 + 6P
E)QS = 40 - 6P
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 20: Measuring Gdp and Economic Growth
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/30330
Sample Questions
Q1) Of the following items,which one would be considered as investment in the National Income and Expenditure Accounts?
A)The purchase of a new van by a potter who packs it with his wares and travels to art shows on weekends.
B)The purchase of 100 shares of Bell Canada stock on the Toronto Stock Exchange.
C)The purchase of a 100-year-old house that was put on the protected historic sites list.
D)The purchase of a Canadian government bond.
E)All of the above.
Q2) Refer to Figure 20.3.1.In the figure,the distance between points T and U represents
A)an expansion.
B)a trough.
C)a peak.
D)a recession.
E)a business cycle.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 21: Monitoring Jobs and Inflation
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/30331
Sample Questions
Q1) The reference base period is 2002.A consumer price index of 122 in 2012 means that A)prices of consumer goods have gone up by a factor of 12.2.
B)if the price of a good was $100 in 2002, its price in 2012 is $122.
C)prices of consumer goods have more than doubled.
D)the market basket of consumer goods that cost $122 in 2002 can be purchased for $100 in 2012.
E)the average of the prices paid by urban consumers for a fixed market basket of consumer goods and services was 22 percent higher in 2012 than it was on average during 2002.
Q2) In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.The involuntary part-time rate is
A)6.3 percent.
B)12.5 percent.
C)2.8 percent.
D)5 percent.
E)none of the above.
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 22: Economic Growth
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/30332
Sample Questions
Q1) If the money wage rate is $15.00 an hour and the price level is 120,the real wage rate is
A)$8.50 an hour.
B)$10.75 an hour.
C)$12.50 an hour.
D)$15.00 an hour.
E)$18 an hour.
Q2) Choose the statements concerning neoclassical growth theory which are true. 1. Neoclassical growth theory was developed in the late 19th century.
2. The rate of technological change influences the economic growth rate but economic growth does not influence the pace of technological change.
3. Economic growth will stop if technology stops advancing.
4. Technological change results from the choices people make in the pursuit of profit.
A)Statements 1 and 4 are correct.
B)Statements 3 and 4 are correct.
C)Statements 2 and 3 are correct.
D)Statements 1 and 3 are correct.
E)Statements 2 and 4 are correct.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 23: Finance,saving,and Investment
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/30333
Sample Questions
Q1) The Acme Stereo Company had a capital stock of $24 million at the beginning of the year.At the end of the year,the firm had a capital stock of $20 million.Thus its A)net investment was some amount but we need more information to determine the amount.
B)net investment was $4 million for the year.
C)gross investment was zero.
D)net investment was -$4 million for the year.
E)depreciation was $4 million.
Q2) At the beginning of the year,Tom's Tubes had a capital stock of 5 tube-inflating machines.During the year,Tom scrapped 2 old machines and purchased 3 new machines.Tom's net investment for the year totaled
A)1 machine.
B)2 machines.
C)3 machines.
D)6 machines.
E)5 machines
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 24: Money,the Price Level,and Inflation
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/30334
Sample Questions
Q1) Money's function as a store of value can best be described as
A)an agreed measure for stating the prices of goods and services.
B)a guarantee of a double coincidence of wants.
C)an efficient means of writing contracts over a long time period.
D)something that can be held and exchanged later for goods and services.
E)a generally acceptable exchange system.
Q2) Refer to Fact 24.3.1.Based on the Bank of Speedy Creek's initial balance sheet,what is its desired reserve ratio?
A)4 percent
B)8 percent
C)12.5 percent
D)25 percent
E)40 percent
Q3) The official definitions of money can include all of the following except
A)currency outside banks.
B)personal chequable deposits.
C)non-chequable deposits.
D)deposits at trust and mortgage loan companies.
E)cheques.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 25: The Exchange Rate and the Balance of Payments
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/30335
Sample Questions
Q1) Suppose the Bank of Canada follows a fixed exchange rate of $1 U.S.per Canadian dollar.If the demand for Canadian dollars temporarily increases,to maintain the target exchange rate,the Bank can
A)sell Canadian dollars.
B)buy Canadian dollars.
C)violate interest rate parity.
D)violate purchasing power parity.
E)enforce interest rate parity.
Q2) Suppose that the following situation exists in the foreign exchange market: 1 Canadian dollar buys $1.05 U.S,and 1 Canadian dollar buys 8.6 Chinese yuan.How many yuan will $1 U.S.buy?
A)8.6 yuan
B)1.0 yuan
C)8.2 yuan
D)0.12 yuan
E)0.14 yuan
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Aggregate Supply and Aggregate Demand
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/30322
Sample Questions
Q1) Consider an economy starting from a position of full employment.Which one of the following changes does not occur as a result of an increase in aggregate demand?
A)The price level rises.
B)Real GDP increases in the short run.
C)An inflationary gap arises.
D)Factor prices rise in the long run, shifting the short-run aggregate supply curve to the left.
E)The long-run aggregate supply curve shifts rightward to create the new long-run equilibrium.
Q2) Aggregate demand
A)measures the amount of a nation's goods and services that people are willing to buy.
B)measures the amount of a nation's labour, capital, and technology that people are willing to buy.
C)is the relationship between the quantity of real GDP demanded and the price level.
D)increases when the price level falls.
E)both C and D are correct.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 27: Expenditure Multipliers: the Keynesian Model
Available Study Resources on Quizplus for this Chatper
158 Verified Questions
158 Flashcards
Source URL: https://quizplus.com/quiz/30323
Sample Questions
Q1) The marginal propensity to consume is calculated as
A)consumption expenditure divided by the change in disposable income.
B)the change in consumption expenditure divided by disposable income.
C)consumption expenditure divided by total disposable income.
D)the change in consumption expenditure divided by saving.
E)the change in consumption expenditure divided by the change in disposable income.
Q2) Refer to Figure 27.3.1.The slope of the AE curve is
A)0.75.
B)0.25.
C)0.50.
D)0.67.
E)1.33.
Q3) If investment increases by $200,and as a result income increases by $800,then the A)multiplier is 1/4.
B)slope of the AE curve is 0.75.
C)slope of the AE curve is 1/4.
D)multiplier is 3.
E)none of the above.
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/30324
Sample Questions
Q1) Refer to Table 28.2.1.The table gives points on the short-run Phillips curve for the country of Ruritania.If the expected inflation rate is 10 percent,and the inflation rate unexpectedly rises to 12 percent,what is the unemployment rate?
A)4 percent
B)5 percent
C)6 percent
D)7 percent
E)9 percent
Q2) If the inflation rate is lower than the expected inflation rate,
A)unemployment is above the natural rate.
B)the natural unemployment rate will increase.
C)the expected inflation rate will increase.
D)unemployment is below the natural rate.
E)the economy is not operating on the short-run Phillips curve.
Q3) Inflation resulting from an increase in aggregate demand is called
A)cost-push inflation.
B)demand-pull inflation.
C)anticipated inflation.
D)unanticipated inflation.
E)political inflation.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 29: Fiscal Policy
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/30325
Sample Questions
Q1) Discretionary fiscal policy
A)requires action by Parliament.
B)is triggered by the state of the economy.
C)involves only a change in government outlays and no change in revenues.
D)involves only a change in personal income tax rates.
E)occurs during recessions but not during expansions.
Q2) Choose the correct statement
A)The federal government debt was 5 percent of GDP in 1970.
B)The debt-to-GDP ratio increased slightly during the 2008-2009 recession.
C)The debt-to-GDP ratio increased from 1974 through 1997, and then began to decrease.
D)The government debt increases when the government has a budget deficit.
E)All of the above.
Q3) Which of the following policies shifts the AD curve the farthest leftward?
A)a decrease in government expenditure of $10 billion
B)an increase in taxes of $10 billion
C)a decrease in taxes of $10 billion
D)an increase in government expenditure of $10 billion
E)a simultaneous increase in government expenditure of $10 billion and taxes of $10 billion
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 30: Monetary Policy
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/30326
Sample Questions
Q1) Who are the members of the Bank of Canada's Governing Council?
A)The Ministers of Finance from each province as well as the Federal Minister of Finance.
B)The Prime Minister, the Minister of Finance, and the Bank's Governor.
C)The Minister of Finance, the Governor, and four Deputy Governors.
D)The Bank's Governor, Senior Deputy Governor, and four Deputy governors who are appointed by the Prime Minister to represent the public interest.
E)The Bank's Governor, Senior Deputy Governor, and four Deputy Governors.
Q2) Choose the statement that is incorrect.
A)The Bank of Canada's choice of policy instrument is the overnight loans rate.
B)When the Bank of Canada wants to slow inflation, it raises the overnight loans rate.
C)The Bank has established 12 fixed dates each year on which it announces its overnight rate target for the coming period.
D)Recently, the overnight loans rate has been at historically low levels because the Bank is leaning in the direction of avoiding recession.
E)The overnight rate was a bit more than 8 percent a year in 1995.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: International Trade Policy
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/30327
Sample Questions
Q1) Suppose the country of Mooland imposes tariffs on imported beef from the country of Aqualand.As a result of the tariffs,the
A)price of beef in Mooland falls.
B)quantity of beef exported by Mooland increases.
C)quantity of beef imported by Mooland decreases.
D)quantity of beef imported by Mooland increases.
E)price of beef in Mooland does not change.
Q2) Which of the following is a Canadian service export?
A)A Canadian buys dinner while travelling in Switzerland.
B)A Swiss buys dinner while travelling in Canada.
C)A Canadian buys a clock made in Switzerland.
D)A Swiss buys a computer made in Canada.
E)A Canadian buys a Canadian computer in Switzerland.
Q3) Canada has a comparative advantage in producing airplanes if
A)it can produce them at a lower dollar cost than another country.
B)it can produce a larger quantity than another country.
C)it has a larger quantity of skilled workers than another country.
D)it can produce them at a higher opportunity cost than another country.
E)it can produce them at a lower opportunity cost than another country.
To view all questions and flashcards with answers, click on the resource link above.
Page 17