Points Awarded100.00 Points Missed0.00 Percentage100% 1. Part 1: 32 questions at 3 points each for a total of 96 points FOR FILL-IN-THE-BLANK questions: If your answer is in decimal form, round to 2 decimal places. For example, if your answer is .412, enter it into the fill-in-the-blank as .41, or if your answer is 1.415, enter it into the fill-in-the-blank as 1.42. If there are no decimals in your answer, you will simply enter the number; so if your answer is 2, enter 2 with no decimals. Do not enter any extra spaces, do not enter commas or $ or % symbols. Use the information below to answer questions 1-6 Consider an economy that produces only two goods: fresh apricots and dried apricots. In this economy, the technology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in the sun.Fannie’s Farmsis the only company that grows fresh apricots, whileDarryl’s Dried Victualsis the only producer of dried apricots. Fannie’s sells some of its apricots directly to consumers for consumption. The relevant revenue and cost information for each of the two firms in the economy is given below: Darryl's Dried Victuals Revenue from selling dried apricots:$2,300,000 Cost of buying fresh apricots from Fannie’s:1,200,000 Interest on funds borrowed to buy drying racks: 250,000 Wages paid to employees600,000 Taxes100,000 Fannie’s Farms Revenue from selling fresh apricots:$2,000,000 Rent on land (including apricot trees)300,000 Wages to employees1,200,000 Taxes200,000

Darryl's profit from selling dried apricots is: Feedback:2,300,000-1,200,000-250,000-600,000-100,000 = 150,000 Table for Individual Question Feedback Points Earned:3.0/3.0

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2. Fannie’s profit from selling fresh apricots is: Feedback:2,000,000-300,000-1,200,000-200,000= 300,000 Table for Individual Question Feedback Points Earned:3.0/3.0

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3. Use theincome approachto calculate nominal GDP. Fill in the blanks in the table below.Enter numbers with no commas, no dollar signs and no decimals. For example, if your answer is $12,000 you would enter 12000 into the appropriate box. a. Total wages 1800000 b. Interest 250000 c. Rent 300000 d.Total profit* 450000

*hint: get total profit by adding your answers for #1 and #2! Table for Individual Question Feedback Points Earned:3.0/3.0

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