Answers for TEST _1 Spring 08 MW and TR2

Answers for TEST _1 Spring 08 MW and TR2 - Name BA 315...

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Name:_________________ Favorite Restaurant:____________ BA 315: Test #1, Spring 08 Lundquist College of Business University of Oregon Ali Emami Please answer all questions. You are allowed to use a calculator to help with the calculations on the test. Do not talk during the test or use someone else’s paper or calculator as assistance this can result in a zero and a failing grade in the class. Each question is worth one point unless stated otherwise. 1. I plan on going to school this year instead of living with my parents and working as a restaurant manager where I can earn annual salary of \$50,000 and a health insurance benefit package of \$12,000. The costs of one year school consists of \$15,000 tuition and fees, \$5,000 books and software, and \$18, 000 more on room and board and health insurance than staying at parent’s home and working as restaurant manager. Calculate the total economic cost of going to school for one year. Facts: Implicit costs: (\$50,000, \$12,000); Explicit Costs: (\$15,000, \$5,000, \$18,000) Answer : Explicit Cost of School = \$15,000+\$5,000+\$18,000=\$38,000_ Implicit Cosyt of School = \$50,000+\$12,000 = \$62,000 Total Economic Cost of School = \$38,000 +\$62,000 = \$100,000 2. In Figure 1, which PPC represents a technological improvement? (Circle your answer) Answer (circle one):: Solid PPC Dashed PPC 3. In Figure 1, which PPC utilizes more resources? (Please circle your answer) Answer (circle one):: Solid PPC Dashed PPC Figure 1 - Production-possibilities curves (PPCs) Manufactured Goods Agricultural Goods 1

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4. In Figure 1, on what PPC society is producing the maximum potential output given that it is utilizing the smaller amount of resources and old technology? Answer (circle one): Solid PPC Dashed PPC 5. Use the hypothetical data shown in the following table to calculate nominal and real GDP in each year.
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This test prep was uploaded on 04/22/2008 for the course ECON 315 taught by Professor Aliemami during the Spring '08 term at Oregon.

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Answers for TEST _1 Spring 08 MW and TR2 - Name BA 315...

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