Suppose an economy’s real GDP is $125 billion in year 1 and $130 billion in year 2. What is the growth rate of its GDP?
What will be an ideal response?
[($125 ? $130)/($125)] = .0385. In percentage terms, the growth rate is 3.85%.
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Suppose the marginal utilities for the first three cans of soda are 100, 80 and 60, respectively. The total utility received from consuming 2 cans is
A) 20. B) 80. C) 90. D) 180.
Which of the following events will cause a leftward shift in the supply curve of gasoline?
A) A decrease in the price of gasoline B) An increase in the wage rate of refinery workers C) Decrease in the price of crude oil D) An improvement in oil refining technology E) all of the above
Analyzing the effect of minimum wage changes on teenage employment across the 48 contiguous U.S. states from 1980 to 2004 is an example of using
A) time series data. B) panel data. C) having a treatment group vs. a control group, since only teenagers receive minimum wages. D) cross-sectional data.
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. If Larry were to decrease the production of lassos, which of the following is true regarding the company's costs?
A. The variable costs of rope would drop to zero. B. The fixed cost of the rope cutting machine would stay the same. C. The fixed cost of the employee's wages would stay the same. D. None of these is true.