Key_to_midterm_taken_on_May_7_2009

# Key_to_midterm_taken_on_May_7_2009 - Name Please circle the...

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Name________________________________________ Please circle the single best response to each of the following 25 questions: 1. Elly’s Butcher House has a fixed capital stock and can expand or contract output by varying its worker staff. Daily production varies according to the following schedule: Quantity of Labor(n) Total Output (in pounds of meat) 0 0 1 10 2 19 3 27 4 34 5 40 6 45 7 49 8 52 If the price of a pound of output is \$20 per unit and if the market wage is \$80 per day per worker, how many workers should Elly’s Butcher House hire: a. 1 workers b. 3 workers c. 5 workers *d. 7 workers e. 8 workers 2. Consider the table in question #1. If the price of output were to fall to \$8 per unit, how many workers would be laid off? a. 1 worker b. 3 workers c. 4 workers d. 5 workers *e. 6 workers

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Name________________________________________ Use the diagram below to answer the next 3 questions: 3. According to the data provided, __________ people constitute the labor force. a. 100 million *b . 195 million c. 85 million d. 180 million e. 280 million 4.From the data provided, the labor force participation rate is approximately _________ percent. *a. 69.6 b. 64.3 c. 92.3 d. 5.4 e. 78.5 5. From the data provided, the unemployment rate is approximately _________ percent. a. 4.5 *b . 7.7 c. 9.2 d. 5.4 e. None of the above 6 If professors lose their positions at universities because of the widespread introduction of courses over the internet, faculty members that remained unemployed would be considered: a. frictionally unemployed. b. underemployed. c. cyclically unemployed. *d . structurally unemployed. e. a discouraged worker. 7. What would happen to the real interest rate if originally the nominal interest rate was 14% and the inflation rate was 10%, then the nominal interest rate fell to 7% as the inflation rate fell to 4%? It would go from: a. 24% to 11%.
Name________________________________________ b. 11% to 24%. *c. 4% to 3%. d. 3% to 4%. e. None of the above 8. Which of the following is included in the investment category under the expenditure approach to GDP accounting? a. stocks b. bonds c. durable goods *d . additions to business inventories e. All of the above 9 Adam's Ribs in downtown Chicago buys \$10,000 worth of beef ribs, \$25,000 worth of pork ribs, and \$8,000 worth of napkins each month. Adam’s Ribs sell meals at a fixed price of \$15 per plate. Adam’s Ribs sells 10,000 plates per month. Based on this information, Adam’s Ribs’ value added is: a. ***\$107,000 b. \$117,000 c. \$125,000 d. \$43,000 e. \$150,000 Use the table below to answer the following 2 questions:

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Key_to_midterm_taken_on_May_7_2009 - Name Please circle the...

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