# Pts use the table below for questions 7 8 lets

• Notes
• 18
• 100% (24) 24 out of 24 people found this document helpful

This preview shows page 3 - 10 out of 18 pages.

Question 73 / 3 pts
Use the table below for questions 7 & 8.Let’s consider some data on consumption and disposable income from the Federal Reserve Database (measured in billions of dollars)Real Personal Consumption ExpendituresReal Disposable Personal IncomeJanuary 1, 19956442.97190.9January 1, 201812061.012940.5The percent change in consumption between 1/1/95 and 1/1/18 is:
Correct!Correct Answers87.287.1987.20FEEDBACK: If you plotted the data provided it would appear as it doesin the graph below. Note that it would not be correct to connect points A and B with a ruler and call it a consumption function. We need to hold all else constant in order to connect the points, and we know for sure all else is not constant (in particular, wealth and consumer confidence changed) during such a long time period.
Question 83 / 3 ptsThe percent change in real disposable between 1/1/95 and 1/1/18 is:
Correct!Correct Answers79.96FEEDBACK: If you plotted the data provided it would appear as it doesin the graph below. Note that it would not be correct to connect points A and B with a ruler and call it a consumption function. We need to hold all else constant in order to connect the points, and we know for sure all else is not constant (in particular, wealth and consumer confidence changed) during such a long time period.
Question 93 / 3 ptsGiven equation Y=520+.6Y, what does Y equal?
Question 103 / 3 ptsUse the following information to answer questions 10 – 14.Suppose South Korea can produce 100 computer chips with 12 hours of labor input and 50 bed linens with 6 hours of labor input. The US can produce 100 computer chips with 10 hours of labor input and 50 bed linens with 4 hours of labor input.The opportunity cost of producing 100 computer chips for South Korea is:Correct!100 Bed Linens125 Bed LinensNone of these are correct40 Computer Chips50 computer Chips
Question 113 / 3 ptsThe opportunity cost of producing 50 bed linens for South Korea is:
40 Computer Chips100 Bed LinensQuestion 123 / 3 ptsThe opportunity cost of producing 100 computer chips for the US is:
Question 133 / 3 ptsThe opportunity cost of producing 50 bed linens for the US is: