Exam 3 - ,Food,andYou Exam#3;Tuesday,December5th,2006...

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AEB 2014 – Economic Issues, Food, and You  Exam # 3; Tuesday, December 5 th , 2006  Please write down your name and  UF ID here  This Exam consists in 11 questions plus 1 bonus question.  Total points are 15 from questions 1-11. You can get up to 4  extra points if you answer the last question. Your grade will be evaluated over a total of 15 (# points/15), but you can get  up to 19 points.   1. In a certain economy in 2005, government purchases exceeded investment by $2,000; investment amounted to 1/6 of  GDP; consumption amounted to 1/2 of GDP; and the economy’s imports exceeded its exports by $500. It follows that  GDP amounted to  (2 points) a. $4,500. b. $7,500. c. $9,000. d. $10,500. Prices and Quantities Year Price of Sandwiches Quantity of Sandwiches Price of Magazines Quantity of Magazines 2006 $4.00 100 $2.00 180 2007 $5.00 120 $2.50 200 2008 $6.00 150 $3.50 200 2.  Refer to previous Table.  Using the GDP deflator to measure the average level of prices and using 2006 as the  base year, the economy's inflation rate is  (1 point) a. 20 percent for 2007 and 12.5 percent for 2008. b. 20 percent for 2007 and 30 percent for 2008. c. 25 percent for 2007 and 28 percent for 2008. d. 44.7 percent for 2007 and 45.5 percent for 2008. --------------------------------------------------------------------------------------------- 3.  Refer to next Table . Suppose that  the basket is : 5 apples, 4 units of bread, 3 robes and 2 gallons of Gas . Using  2002 as the base year, what was the  inflation rate  between 2003 and 2004?  (1 point) a. 28.5 percent b. 34.2 percent c. 47 percent d. It is impossible to determine with the information provided. Year
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This note was uploaded on 01/10/2011 for the course AEB 2014 taught by Professor Multiple during the Spring '08 term at University of Florida.

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Exam 3 - ,Food,andYou Exam#3;Tuesday,December5th,2006...

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