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  3. Liberty ECON 214 Exam 1 Answers Complete Solutions

Contents

  • 1 Liberty ECON 214 Exam 1 Answers Complete Solutions
      • 1.0.1 Question 1
      • 1.0.2 Question 2
      • 1.0.3 Question 3
      • 1.0.4 Question 4
      • 1.0.5 Question 5
      • 1.0.6 Question 10
      • 1.0.7 Question 11
    • 1.1 STATUS
      • 1.1.1 Question 12
      • 1.1.2 Question 13
      • 1.1.3 Question 14
      • 1.1.4 Question 17
      • 1.1.5 Question 18
      • 1.1.6 Question 25
      • 1.1.7 Question 26
      • 1.1.8 Question 27
      • 1.1.9 Question 28
      • 1.1.10 Question 29
      • 1.1.11 Question 30
      • 1.1.12 Question 35
      • 1.1.13 Question 39
      • 1.1.14 Question 40

Liberty ECON 214 Exam 1 Answers Complete Solutions

 

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Question 1

Let’s say a bottle of Dr. Wells (an actual soft drink still available but hard to obtain) cost $0.15 in 1970. If the consumer price index (CPI) in 1970 was 37.8 and the current CPI is 240, then the Inflationadjusted price of Dr. Wells would be (rounded to the nearest penny):

Question 2

The natural rate of unemployment is:

Question 3

For the the questions that follow, suppose a country has the following quarterly growth data for the last three years: The country’s longrun average growth rate is 3%. In how many of these quarters did GDP contract?

Question 4

If real GDP grew by 2% and the inflation rate was 2%, then nominal GDP grew by:

Question 5

Assuming the price level increased, if real GDP is less than nominal GDP for a given year, then:

Question 10

The value of the consumer price index (CPI) in 2011 was 229 compared to the base period’s, which will always have the value of:

Question 11

The government purchases category of GDP includes spending by:

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Question 12

You are offered two jobs, one in Richmond, Virginia, paying $67,000, and one in San Diego, California, paying $79,000. The price index in Richmond is 104.5, and in San Diego it is 132.3. If real wages are the only consideration, then:

Question 13

Consider a nation in which the price index was 150 last year and this year it is 130. Which statement is correct?

Question 14

The phase of the business cycle where the economy is growing faster than usual is called:

Question 17

As a business owner, you find that your resource prices are increasing often. Because these costs are rising, you find it necessary to change your prices frequently. This best describes:

Question 18

Refer to the following table to answer the questions that follow:

As presented in the table, the rate of inflation from 1999–2000 (i.e., during the year 2000) was (rounded to two decimal places):

Question 25

Refer to the following table to answer the questions that follow: As presented in the table, the rate of inflation (or deflation) from 2002–2003 was (rounded to two decimal places):

Question 26

During normal economic times, unemployment in France and Germany tends to be ____________ than in the United States mainly because of ____________.

Question 27

If the relevant population is 268 million people and the number of people in the labor force is 148 million, the number of people NOT in the labor force is equal to:

Question 28

Holding all else constant, if people who are currently discouraged workers decide to start looking for jobs again, you will see:

Question 29

Real GDP would be a better measure of economic wellbeing if it included the value of:

Question 30

If people bought the same market basket of goods as the average consumer again and again:

Question 35

Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10% on average, but the price of tennis rackets remains the same. Which statement is correct?

Question 39

Which of the following conditions might cause the unemployment rate to be less than the natural rate of unemployment?

Question 40

The concept of a price index is that:

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