ECON252 Interim Exam #1 10-03-2013 - PINK

Pricefallsthequantitychangeisambiguous d

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Unformatted text preview: sponsored graduate students based on the CPI. If this year’s wage is $24,000, the current CPI is 160, and the contract was first executed in the base year, what was the original salary? A. $15,000 B. $12,000 C. $18,000 D. [None of the above] 14. Consider the market for gym memberships. Suppose the cost of commercial gym equipment falls. Also, the government begins a campaign encouraging citizens to exercise more. What will happen to the equilibrium price and quantity of gym memberships? A. The price change is ambiguous; quantity rises B. Price rises; the quantity change is ambiguous C. Price falls; the quantity change is ambiguous D. The price change is ambiguous; quantity falls (Use the following information to answer questions 15–16.) Suppose the government of Greece is currently running a budget deficit of $1 billion, and has balanced trade. GDP is $10 billion, consumption is $4 billion and government spending is $2 billion. 15. Investment is ________ . A. $8 billion B. $4 billion C. $6 billion D. $2 billion E. [None of the above] 16. Tax revenue is ________ . A. $3 billion B. $2...
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This test prep was uploaded on 02/19/2014 for the course ECON 252 taught by Professor Robertholand during the Fall '08 term at Purdue.

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