This year an economy produced 3,700 coats, 3,000 shoes and 2,000 socks. The price of coats was €50, the price of socks was €3.50 and the price of shoes was €70. In the base year, prices were 10% lower. Nominal GDP was:
(a) €361,800;
(b) €402,000;
(c) €420,000;
(d) Cannot be computed.
Answer: (b) €402,000;
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In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?
a. 1/8 cabinet per hour b. 8 hours per cabinet c. 40 cabinets d. None of the above is correct.
With respect to their impact on aggregate demand for the U.S. economy, which of the following represents the correct ordering of the wealth effect, interest-rate effect, and exchange-rate effect from most important to least important?
a. wealth effect, exchange-rate effect, interest-rate effect b. exchange-rate effect, interest-rate effect, wealth effect c. interest-rate effect, wealth effect, exchange-rate effect d. interest-rate effect, exchange-rate effect, wealth effect
A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. If Jane works for 6 hours she can rent out 9 apartments, and if she works for 7 hours she can rent out 12 apartments. The marginal benefit of Jane's 7th hour of work equals:
A. 9 apartments B. 3 apartments C. 1 apartment D. 12 apartments
Unemployment insurance benefits the macroeconomy by supporting purchasing power.
Answer the following statement true (T) or false (F)