quiz1 - Version 1 1. Suppose the price of electricity...

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Version 1 1. Suppose the price of electricity increases and that air-conditioners use more electricity compared to other household appliances. One would expect A) The demand for electricity to decrease. B) The demand for air-conditioners to decrease. C) The demand for air-conditioners to increase. D) The quantity demanded of air-conditioners to increase. E) The quantity demanded of air-conditioners to decrease. - Electricity and air conditioners are complements of each other - 2. An economy produces only 1,000,000 computers valued at $2,000 each. Of these 200,000 are sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. The computer manufacturers hold the unsold computers at the end of the year in inventory. What is value of the investment component of GDP? A) $0.3 billion B) $0.4 billion C) $0.6 billion D) $0.7 billion E) $0.8 billion - 100,000 = inventory The investment component of GDP = 300,000 + 100,000 = 400,000 Use formula 3. Which of the following statements is true? A) An unattainable point is inefficient. B) An efficient point may or may not be attainable. C) An inefficient point must be unattainable. D) An efficient point must be attainable. E) An attainable point must be efficient. Any point inside the production curve = inefficient E = wrong because any point inside the production possibility curve is attainable but inefficient 4. The value of unpaid work by a homemaker ___ included in GDP and value of
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This note was uploaded on 04/15/2008 for the course ECO 181 taught by Professor Cherry during the Spring '07 term at SUNY Buffalo.

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quiz1 - Version 1 1. Suppose the price of electricity...

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