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ECON252_Practice_Exam_1B_02-14-2013_-_BLUE_KEY_

# A 176 b 529 c 300 d 537 e 614 30

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Unformatted text preview: g events contributed towards US GDP in the year 2012? A. Samantha, a US citizen, worked as an engineer in Italy and earned an annual salary of 50,000 Euros in 2012. B. Ford, a US car manufacturer, sold \$500,000 worth of a brand new model of cars in January 2012, which were introduced in December 2011, but were unsold in 2011. C. Celia, a citizen of San Francisco, consumed \$50 worth of imported Norwegian salmon in the year 2012. D. Perfect Printers, a US based printing company, invested \$2 million in a new printing machine produced by an US manufacturer in 2012. *** 27. Metal Inc. produced \$200,000 worth of mountain bike pedals in 2010. It sold \$150,000 worth of its product to Amazing Cycles Inc., who used them as parts to manufacture \$600,000 worth of mountain bikes in the same year. The remaining pedals were added to Metal Inc.’s inventory. These transactions increased US GDP in 2010 by A. \$800,000 B. \$650,000 *** C. \$600,000 D. \$750,000 [Use the following information to answer questions 28–29.] The table below contains data for a country that produces only bread, cereal and milk. The base year is 2009. Cereal Milk Bread Year Price Quantity Price Quantity Price Quantity 2008 \$2.00 100 \$3.00 90 \$1.00 100 2009 \$2.00 120 \$3.00 100 \$2.00 150 2010 \$2.00 150 \$4.00 110 \$3.00 200 28. The rate of growth of real GDP between 2009 and 2010 was _______ . A. 22.6% *** B. 59.5% C. 80.7% D. 175.5% 29. The inflation rate between the year 2008 and 2010 is _______ . A. 17.6% B. 52.9% *** C. 30.0% D. 53.7% E. 61.4% 30. Which of the following events is likely to overstate the CPI in the year 2010? A. Introduction of iPads in the year 2010. B. Increase in the price of natural gas in the year 2010, when the price of electricity remained unchanged. C. The customer service of a certain cellular service provider improved, without any increase in the price of the cellular service. D. [All of the above] *** E. [None of the above] 31. Stephanie bought a tea set in 1990 for \$8. In 2010, she replaced her old tea set with a new one, which cost her \$25. If the CPI was 130 in 1990 and was 218 in 2010, how much is her new tea set worth in 1990 dollars? A. \$13.47 B. \$41.91 C. \$14.91*** D. \$4.82 E. [None of the above] 32. (Assume a closed economy.) If GDP remains the same, both the taxes and government expenditure increase by \$3 billion, and consumption decreases by \$2 billion, then A. private saving and public saving decrease by \$1 billion. B. public saving and i...
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