41) Which of the following is a tool for achieving macroeconomic objectives? A) Fiscal policy B) Monetary policy C) Incomes policy D) All of the above
41) Which of the following is a tool for achieving macroeconomic objectives?
A) Fiscal policy
B) Monetary policy
C) Incomes policy
D) All of the above
42)
A) only to governments
B) only to business firms seeking to maximize their profits
C) only to households seeking employment
D) to all economic decision-making units
43) Consider a circular flow model with households, firms, and government. Which of the following is true?
A) Households sell labour services and other resources to firms
B) Households purchase resources from firms and convert them into goods and services
C) The government does not purchase anything from households
D) Households receive income from firms but not from the government
44) Payments such as employment insurance and welfare are called:
A) employment income
B) transfer payments
C) compensation income
D) business income
45) When households purchase government bonds, they:
A) lend to the government
B) borrow from the government
C) earn no interest
D) use those bonds to purchase goods and services
46) The issuing of bonds by the government represents:
A) lending by the government
B) the taxing power of the government
C) borrowing by the government
D) surplus funds in the government's budget
47) The circular flow model shows that:
A) expenditure by one sector becomes the receipt of some other sector
B) some sectors have expenditures but no receipts
C) some sectors have receipts but no expenditures
D) all sectors have receipts exactly equal to expenditures
48) The behaviour of the Canadian economy can be gauged by looking at:
A) total output
B)
C) inflation
D) all of the above
49)
A) the sum of an economy’s exports and its imports
B) the total amount of money spent in an economy on consumer goods and services
C) the total value of all the goods and services produced in an economy during a period
D) the value of exports minus imports
50) The growth of output in the Canadian economy:
A) has always been positive
B) has always been above 3% per year
C) has been subject to short-term fluctuations
D) has increased at a constant rate over time
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