Question

1 Net National Income equals Gross National Income minus

A changes in inventories.

B imports.

C inventories.

D exports.

E depreciation.

2 Export growth in Canada will help increase Canadian GDP because

A exports are subtracted from imports when calculating GDP.

B growth in exports indicates a decline in imports.

C exports are added to imports when calculating GDP, causing GDP to increase.

D an increase in exports will increase net exports, assuming no change in imports.

E exports are the largest element of GDP.

3 Structural unemployment is the result of

A a slowdown in the economy.

B the entry of new workers into the labour force.

C the search process of matching workers with jobs.

D the ups and downs in inflation.

E a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.

4 People born in wealthier countries can expect

A to live shorter lives than those in poorer countries due to the pollution associated with economic activity.

B to live longer than those born in poorer countries because wealthy countries can provide more health care.

C to live shorter lives than those born in the same country 40 years ago.

Dto live shorter lives than those born in poorer countries.

E to live just as long as those born in poorer countries because wealth and life expectancy are unrelated.

Answer 1

ANSWER-

1.) Net National Income equals Gross National Income minus Depriciation on fixed capital assets. When depreciation is subracted from Gross National Income (GNP) we get nation income.

So, the answer is (E) Depreciation.

2.) Export growth in Canada will help increase Canadian GDP because an increase in exports will increase net exports, assuming no change in imports.

Net exports is the component of GDP and net exports is calculated as exports minus imports so if exports increases the net exports will increase and hence GDP will increase.

So, the answer is (D) an increase in exports will increase net exports, assuming no change in imports.

3.)  Structural unemployment is the result of  a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. As structural unemployement refers to the unemployment caused due to mismatch between skills of the unemployed people and the jobs available.

So, the answer is (E) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.

4.)  People born in wealthier countries can expect to live longer than those born in poorer countries because wealthy countries can provide more health care. As the wealthier countries will be able to provide better health services at less cost so the people of wealthier countries may live long as compared to poor countries.

So, the answer is (B)  to live longer than those born in poorer countries because wealthy countries can provide more health care.