ECON252_Practice_Exam_1A_-_Chapters_1_2_4-8_KEY_

Indecember2011sheproduces34basketsandsells16that

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Unformatted text preview: salary was equivalent to a 2009 salary of about _______ . A. $5,315 B. $1,058,388 *** C. $493,421 D. $16,087,500 7. Based on our economic definition of “scarcity”, which of the following are considered non‐ scarce? A. diamonds B. time C. DVDs D. notebook paper E. [All of the above are scarce] *** 8. Cheryl produces baskets. In December 2011, she produces 34 baskets and sells 16 that month. The next month, January 2012, she sells the other 18. Which of the following statements is true? A. Only the 16 baskets she sells in December 2011 count toward 2011 GDP. B. The 18 baskets she sells in 2012 aren’t counted toward GDP in any year. C. All the baskets she made in December 2011 count toward 2011 GDP. *** D. All the baskets she made count toward 2012 GDP. 9. Initech is a software company. They bought new computers for their developers, which cost $12,000. Initech is in the U.S. and the software was made in the U.S. Which of the following statements are true? A. The $1200 counts toward consumption. B. The $1200 counts toward investment. *** C. The $1200 counts toward government spending. D. The $1200 counts toward exports. 10. The property of society getting the most it can from its scarce resources is called A. equity B. efficiency *** C. equality D. efficacy 11. Which of the following would cause a movement along the supply curve for wine? A. a change in the number of wine producers B. a change in the price of wine workers’ labor C. a change in the price of wine *** D. [All of the above] [Use the following information to answer questions 13–14.] In 2005, the economy produced 2000 gallons of ice cream and 4500 pounds of roast beef. The ice cream sold for $7 per gallon and the roast beef sold for $12 per pound in 2005. The next year, 2006, the economy produced 1750 gallons of ice cream which sold for $8 and 5300 pounds of roast beef which sold for $15. The base year is 2005. 12. What is the real GDP in both years? A. Real GDP in 2005 is $68,000 and real GDP in 2006 is $75,850. *** B....
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