Problem : What does the CPI measure?
The CPI measures the cost of living based on the relative
cost of a fixed based of goods and services consumed by
a typical consumer in a country.
Using the figure above, compute the CPI for Country C in
Figure %: Goods and Services Produced in Country C
Calculate the nominal GDP for Country C in year 2.
([(15 X $1) + (12 X $2)] = $39
Problem : Using , calculate the real GDP for Country C in
year 2, using year 1 as the base year.
(15 X $0.50) +
Problem set 1: Introduction to Finance (Ec-50)
A. (20 points) Multiple choice questions (10 questions): Each question is over 2 points.
1) A liquid asset is
A) an asset that can easily and quickly be sold to raise cash.
B) a share of an ocean resort.