2007 gooda goodb goodc price 100 200 500 quantity

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Unformatted text preview: The higher is the level of taxes, the lower is consumption spending. B) The higher is the level of taxes, the higher are wage demands. C) A reduction in export taxes on petroleum would result in higher wages. D) Tuition fees should be waived for low - income students. E) A free- trade agreement between two countries will result in an increase in trade. 13) If 27 million people are employed and 3 million people are unemployed, what is the unemployment rate? A) 11% B) 89% C) 10% D) 90% E) indeterminable from the information provided. 3 The table below shows total output for an economy over 2 years. 2007 Good A Good B Good C Price $1.00 $2.00 $5.00 Quantity 100 units 200 units 100 units 2008 Price Good A $2.00 Good B $3.00 Good C $10.00 Quantity 120 units 200 units 98 units TABLE 20 -3 14) Refer to Table 20 - 3. The real GDP in 2008, expressed in 2007 prices, was A) $ 700. B) $ 840. C) $ 970. D) $1 010. E) $1 740. 15) There will be no gains from specialization and trade between two countries if A) neither country has an absolute advantage in the production of any good. B) neither country has a comparative advantage in the production of any good. C) opportunity costs are the same in the two countries. D) there are no economies of scale. E) both B and C are correct. The supply and demand schedules for dozens of roses are given below: Price Quantity Supplied per period Quantity Demanded per period $10 200 500 $20 300 450 $30 400 400 $40 500 350 $50 600 300 TABLE 3-1 16) Refer to Table 3- 1. The equilibrium price for a dozen roses is ________. A) $10 B) $20 C) $30 D) $40 4 E) $50 FIGURE 21-1 17) Refer to Figure 21- 1. The marginal propensity to save is given by B) DE/Y2 Y3. C) DF/ Y2 Y3. A) DE/Y1 Y3. D) FE/Y1 Y3. E) FE/Y2 Y3. 18) Suppose Andrea has a job that pays her $25 000 per year (after taxes). She is considering quitting her job and going to university full time for four years. Tuition fees and books will cost $12 000 per year. Living expenses will cost $5 000 per year. What is the opportuni...
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This test prep was uploaded on 03/13/2014 for the course ECON 101 taught by Professor Vanderwaal during the Fall '08 term at Waterloo.

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