04 Jun Question EC 202- Macroeconomics SNHU 15EW3 Exam #1
Question
EC 202- Macroeconomics
SNHU 15EW3
Exam #1
NAME_______________________________________________________________________
Instructions: Please answer ALLof the Questions from 1 to 12(except Extra Credit) Below. For questions requiring computations, please show your work completely to get full credit. Good Luck!
1. In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI has 50 units of food and 10 units of clothing. (4 points)
food
clothing
2014 price
$4
$10
2015 price
$6
$20
a. What are the percentage increases in the price of food and in the price of clothing?
b. What is the percentage increase in the CPI? (hint: Calculate % change in total market basket for the goods from 2002 to 2003)
2. List and explain in your own words the three major problems in using the CPI as a measure of the cost of living. (6 points)
3. Henry Ford paid his workers $5 a day in 1914 when the CPI was 10. Today with the price index at 177 the $5 a day is worth how much? (2 points)
4. Both the standard of living and the growth of real GDP per person vary widely across countries. (TRUE/FALSE)
5. What is a production function? Write an equation for a typical production function, and explain what each of the six terms represent. (7 points)
6. Which of the following is an example of the “brain drain”?
a. A country’s most highly educated workers emigrate to rich countries.
b. A country has such a poor educational system that human capital falls over time.
c. The population of a country grows so fast that the educational system can’t keep up.
d. A country steals patented technology from another country.
7. In the first segment from the video, “Commanding Heights,” the famed Latin American economist Hernando de Soto tells the story of a coffee bean farmer from Tanzania, who when asked whether he can produce proof that he owns the land, asserted that he had no official deed but that he had purchased the land from someone years ago and the fact that he lives there today is proof enough that he owns it. In your own words, explain what De Soto’s main argument is about property rights and how it relates to a country’s standard of living? (2 points)
8 Below is a graph showing the market for loanable funds.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.