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1. 1. Calculate GDP in this simple economy. Consumer purchases: $100,000,000 per year / Investment purchases: $50,000,000 per year Government purchases: $20,000,000 per year / Total exports: $50,000,000 per year / Total imports: $70,000,000 per year a) $190,000,000 b) $170,000,000 c) $220,000,000 d) $290,000,000 e) $150,000,000 2. 2. Countries with high GDP per capita have institutions that make it in people’s self-interest to invest in physical capital, human capital, and technological knowledge and to efficiently organize these resources for production. .. a) property rights b) honest government c) university school systems d) political stability e) a dependable legal system 3. 3. Sometimes in supply and demand models, it’s not clear who supplies and who demands. For instance, in the labor market, it’s individual workers (not firms) who supply labor. In the loanable funds market, who is usually the supplier and who is usually the demander? a) Entrepreneurs supply loanable funds and savers also supply
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This note was uploaded on 06/19/2011 for the course ECO 101 taught by Professor 1221 during the Spring '11 term at Akademia Ekonomiczna w Krakowie.

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3 - Please highlight the right answer in red 1. 1....

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