ECON100 (Wk. 2) -- Ch. 3, 4, 5

Refer to Table 23-10. What was this country's nominal GDP in 2014?

$10,000

Refer to Figure 4-12. If these are the only two sellers in the market, then the market quantity supplied at a price of $4 is

14 units

Refer to Figure 3-5. If Hosne and Merve both spend all of their time making wallets, then total production is

14 wallets

Table 3-11Assume that Max and Min can switch between producing mittens and producing hats at a constant rate. Refer to Table 3-11. Assume that Max and Min each has 36 labor hours available. If each person divides his/her time equally between the production of mittens and hats, then total production is

18 mittens and 7.5 hats.

Table 3-28 Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies. Refer to Table 3-28. Barb's opportunity cost of testing one computer is setting up

5/4 computers and Jim's opportunity cost of testing one computer is setting up 4/3 computers.

Refer to Table 3-15. Assume that the farmer and the rancher each has 40 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is

7.5 pounds of meat and 6 pounds of potatoes.

GDP is not a perfect measure of well-being; for example,

All of the above are correct.

Otherwise legal transactions that go unreported or unrecorded are called

All of the above are correct.

Sam, an American citizen, prepares meals for his family at home. Ellen, a Canadian citizen, commutes to the U.S. to help prepare meals at a restaurant in Idaho. Whose value of services preparing meals is included in U.S. GDP?

Ellen's but not Sam's.

Which of the following changes would not shift the demand curve for a good or service?

a change in the price of the good or service

A supply curve slopes upward because

an increase in price gives producers an incentive to supply a larger quantity.

Once the demand curve for a product or service is drawn, it

can shift either rightward or leftward.

Refer to Figure 4-19. If price in this market is currently $14, then there would be a(n)

excess supply of 40 units. The law of supply and demand predicts that the price will fall from $14 to a lower price.

Refer to Figure 3-10. Both Alice and Betty

face a constant trade-off between producing pitchers of lemonade and pizzas.

Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price increases from $12 to $15, quantity supplied will

increase by 6 units.

A farmer has the ability to grow either corn or cotton or some combination of the two. Given no other information, it follows that the farmer's opportunity cost of a bushel of corn multiplied by his opportunity cost of a bushel of cotton

is equal to 1.

Suppose an economy's production consists only of corn and soybeans. In 2010, 20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel. In 2009, the price of corn was $2 per bushel and the price of soybeans was $1 per bushel. Using 2009 as the base year, it follows that, for 2010,

nominal GDP is $100, real GDP is $50, and the GDP deflator is 200.

Which of the following is included in the consumption component of U.S. GDP?

purchases of natural gas by U.S. households