Sample_mid1 - by foreign residents(b because some...

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ECO 301 Intermediate Macroeconomics Instructor: Fang Yang 1. Sample multiple-choice questions: 1).Jim’s Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim’s contribution to GDP is (a) $900. (b) $1000. (c) $1100. (d) $1800. 2, Suppose that the government collects $3 million in taxes, pays $2 million in Social Security benefits, and pays workers $1 million to sit at their desks and work as little as possible. The government’s contribution to GDP is (a) $0. (b) $1 million. (c) $3 million. (d) $3.5 million. 3). GDP and GNP may differ (a) because some income generated by domestic production may be received as income
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Unformatted text preview: by foreign residents. (b) because some intermediate good inputs are imported. (c) because some workers are illegal aliens. (d) whenever tariff rates become excessively high. Zowie! Surfboards has the following production function. Number of Workers Number of Surfboards Produced 1 12 2 21 3 29 4 36 5 42 4). If surfboards sell for $30 and the nominal wage rate is $200, how many workers should the firm employ? A) 2 B) 3 C) 4 D) 5 5). How many people are unemployed if the employment ratio is 75%, there are 90 million people employed, and there are 20 million people not in the labor force? A) 20 million B) 10 million C) 5 million D) 0 million...
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