Economics Easy Questions Assignment | Buy assignments online

QUESTION 1

1. The table below describes the output and price for a one-good economy over a 6 year period. Use the blank table you downloaded from the Quiz 3 Resources spreadsheet in the COURSE DOCUMENTS section to fill in the blanks for questions 7 through 12. Go ahead and fill in your table now before moving on to the next set of questions (8-12) because this table will not appear in those questions. Do not use percentage signs or decimals for this series of blanks. Don’t forget to put in a minus sign where appropriate. For answers that require a decimal point, carry the answer out to one decimal place. For example if an answer were 5.33333, just enter it as 5.3. Or, if an answer were 2.6666666, just enter it as 2.7. One other word of warning — most students lose points because they use the Output column when they should have used the Price column, and vice versa. Don’t let this happen to you — make sure you’re using the correct column, especially in computing the Price Index.

2. The percentage change in output from year 1 to year 2 is %
3. The percentage change in output from year 2 to year 3 is %
4. The percentage change in output from year 3 to year 4 is %
5. The percentage change in output from year 4 to year 5 is %
6. The percentage change in output from year 5 to year 6 is %

3.35 points   

QUESTION 2

1. For this set of blanks, do not use dollar signs or decimals.
2. A) The nominal GDP for year 1 is
3. B) The nominal GDP for year 2 is
4. C) The nominal GDP for year 3 is
5. D) The nominal GDP for year 4 is
6. E) The nominal GDP for year 5 is
7. F) The nominal GDP for year 6 is

4.02 points   

QUESTION 3

1. For this set of blanks, do not use percentage signs. For answers requiring a decimal, just use one decimal place. for answers that do not require a decimal, don’t use any decimal places. For example, if the answer to one of the blanks was 5, enter 5, not 5.0. If the answer were 3.3333 or 6.66666 enter 3.3 or 6.7, respectively. Use minus signs where appropriate.
2. A) The percent change in nominal GDP from year 1 to year 2 is
3. B) The percent change in nominal GDP from year 2 to year 3 is
4. C) The percent change in nominal GDP from year 3 to year 4 is
5. D) The percent change in nominal GDP from year 4 to year 5 is
6. E) The percent change in nominal GDP from year 5 to year 6 is

3.35 points   

QUESTION 4

1. For this set of blanks, enter all numberswith one decimal place 1.0, 2.5 etc.

The price index for year 1 is

The price index for year 2 is

The price index for year 3 is

The price index for year 4 is

The price index for year 5 is

The price index for year 6 is

4.02 points   

QUESTION 5

1. For this set of blanks do not use dollar signs or decimals.

The real GDP for year 1 is

The real GDP for year 2 is

The real GDP for year 3 is

The real GDP for year 4 is

The real GDP for year 5 is

The real GDP for year 6 is

4.02 points   

QUESTION 6

1. For this set of blanks, do not use percentage signs. For those amounts requiring a decimal point, use only one decimal place, otherwise use no decimals. Don’t forget to put a minus sign where appropriate.

The percent change in real GDP from year 1 to year 2 is

The percent change in real GDP from year 2 to year 3 is

The percent change in real GDP from year 3 to year 4 is

The percent change in real GDP from year 4 to year 5 is

The percent change in real GDP from year 5 to year 6 is

3.35 points   

QUESTION 7

1. Note that from year 4 to year 5, the rate of inflation was A) % (enter percentage as a whole number, no decimal points, enter minus sign if appropriate). This phenomenon is known as B)  (enter number from Word Bank, not the actual word).

4 points   

QUESTION 8

1. Macroeconomists observe that in real life, markets don’t work quite as smoothly as indicated in chapter 3. That’s because in some markets, prices are A) and don’t adjust smoothly to surpluses or shortages.  One such example is the wage rate. Because the wage rate is not very flexible, the economy may go through significant periods of B)  – where the quantity of labor supplied exceeds the quantity of labor demanded.

4 points   

QUESTION 9

1. The basic difference between microeconomics and macroeconomics is that micro considers choices made by A) consumers and producers while macro considers the B)  behavior of producers and consumers.

4 points   

QUESTION 10

1. In measuring economic performance, we see that the macroeconomy experiences periods of rapid economic fluctuations. A rapid increase in aggregate output is referred to as an economic A) and a rapid decrease is an economic B) . Over the long run, however, despite the fluctuations in the business cycle, the trend line rises. This rising trend line of economic fluctuations is referred to as economic C) . The period of severe economic contraction which occurred during the 1930’s is known as the D) .

8 points   

QUESTION 11

1. There are two basic causes or types of inflation. One type, called A) pull, occurs when there is too much B) . In such a case, the price level would rise but the C)  rate would be low. In the case of cost-push inflation, the level of economic activity (as measured by the D)  GDP) would go E)  and the unemployment rate would go F) .

2 points   

QUESTION 12

1. In computing the GDP, only the value of A) goods are included, while the value of intermediate goods are excluded. If the value of intermediate goods were included, we’d be committing the error of B)

4 points   

QUESTION 13

1. Because every cent that is spent will be received by somebody as income, we can compute the GDP by using the A) approach or the B)

4 points   

QUESTION 14

1. Imagine an economy that produces only one good, say widgets. In year 1, it produced 10 widgets widget (which sold for $10 each) and in year two  in produced 8 widgets (which sold for $15 each).  From year one to year 2, that economy’s nominal GDP went A) (up/down – enter number from sheet, not the word) and it’s real GDP went B)  (up/down – enter number from sheet, not the word).

4 points   

QUESTION 15

1. The GDP may actually understate the actual level of output in the economy by from five to thirty percent. That’s because people have an incentive to avoid taxes or produce illegal goods and services in the A)

2 points   

QUESTION 16

1. Imagine a hypothetical economy with a population of 100 people, 80 of which over sixteen. Forty eight of these people who are working and twelve people who are willing, able and looking for work cannot find jobs. The unemployment rate in this economy is A) % (enter percentage as a whole number, not a decimal, no percentage sign). Suppose that 10 of those unemployed people get discouraged and give up looking for work. Now, the unemployment rate is B) % (enter percentage as a whole number, not a decimal, no percentage sign).

4 points   

QUESTION 17

1. The short term unemployment that occurs when someone is between jobs is known as A)  The type of unemployment that is due to shifts in the economy like technological change or when a U.S. company moves its operations to a foreign country is known as B) unemployment. Because these types of unemployment are inevitable in a large, dynamic, technologically progressive, and diverse economy such as ours, the sum of these two rates is known as the C)  rate of unemployment. Although it is hard to estimate, the general consensus is that it’s probably somewhere between D) % and E) % (enter percentage as a whole number, not a decimal). The remainder of the actual unemployment rate (most of which is due to an economic contraction/recession) is called F)  unemployment – referring, of course to fluctuations in the business cycle.

12 points   

QUESTION 18

1. Inflation is defined as the annual percentage change in the A) (enter actual acronym rather than a number from resource sheet). The government agency charged with compiling this index is B) .  (enter actual acronym rather than a number from resource sheet).

4 points   

QUESTION 19

1. If the annual rate of inflation is greater than the increase in your nominal income for that year, your real income goes A) (up/down – enter number from sheet, not the word). Unanticipated inflation B)  (hurts/benefits – enter number from sheet, not the word)

4 points   

QUESTION 20

1. Imagine a country whose population, in year 1, is 100 people and the real value of output is $5,000. The per-capita level of output is A)$ (enter dollar value, no decimals or dollar signs). Assume that between year 1 and year 5, its population has grown to 130 and the real value of its output has risen to $6,000. Over this period, this country’s per-capita (i.e., per person) output has gone B)  (up/down – enter number from sheet, not the word). Over time, even though the economy goes through expansions and contractions, the long run trend line of the business cycle in the United States is going C)  (up/down – enter number from sheet, not the word). This phenomenon is known as economic D) .