{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Practice Exam 1.3 - Practice Exam 1.3 1 A labor contract...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Practice Exam 1.3 1)  A labor contract provides for a first-year wage of $15 per hour, and  specifies that the real wage will rise by 4 percent in the second year of the  contract. The CPI is 150 in the first year and 180 in the second year. What  dollar wage must be paid in the second year?  A) $15.60 B) $28.08 C) $18.60 D) $18.72 E) $18.00 2)  The typical family on the Planet Econ consumed 10 pizzas and 20 gallons  of milk in 2002, the base year, at which time pizzas cost $16 each and milk  cost $2 per gallon.  In 2003, the typical family consumed 16 pizzas and 30  gallons of milk at which time the price of pizzas went down to $15 each, while  the price of milk increased to $3 per gallon.  The consumer price index for  2003 equaled ______ .    A) 165 B) 105 C) 117 D) 135 E) 158 3)  In Econland, population increased from 100 to 108, the number of  employed workers increased from 50 to 60, but average labor productivity  decreased from $2,000 per worker per year to 1,800 per worker per year. Total  output in Econland _____ and the average standard of living _____.  A) increased; decreased B) decreased; decreased C) increased; increased D) increased; remained constant E) decreased; increased  4)  Because Congress fixes the minimum wage in nominal terms, when there  is inflation, the nominal minimum wage _____ and the real minimum wage  _____. 
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
5)  An economy produces 700 tables valued at $100 each. Households  purchase 100 domestically produced tables.  Businesses purchase 200 tables  of which 50 are imported.  The government purchases 100 domestically  produced tables and 150 domestically produced tables are sold abroad. The  unsold tables at the end of the year are held in inventory by the table  manufacturers. What is the value of the investment component of GDP?  A) $35,000 B) $70,000 C) $25,000 D) $40,000 E) $15,000
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern