QUESTION 1 Matthew just graduated from City University of New York with a degree in Mathematics. He also participated in several competitions while in the college and participatedin research...

QUESTION 1

1. Matthew just graduated from City University of New York with a degree in Mathematics. He also participated in several competitions while in the college and participatedin research projects.Economists include these skills as part of Matthew's

   		proprietary knowledge.
   		technological knowledge.
   		human capital.
   		physical capital.

4 points

QUESTION 2

1. Timothy own a Subway franchise. He used flour, oil, seasoning and oven to bake the bread for sandwich. Oven in this case is an example of

   	a.	​human capital.
   	b.	physical ​capital.
   	c.	​natural resources.
   	d.	​labor.

4 points

QUESTION 3

1. Human capital is

   		the same thing as technological knowledge.
   		the same thing as labor.
   		the tools and equipment operated by humans.
   		knowledge and skills that workers have acquired.

4 points

QUESTION 4

1. Which of the following statements is correct?

   	a.	Productivity is a determinant of natural resources per worker.
   	b.	Technological knowledge is a determinant of productivity.
   	c.	Productivity is a determinant of physical capital per worker.
   	d.	Catch-up effect is one of the determinant of productivity.

4 points

QUESTION 5

1. 
   

   A property that explains that a country that starts off poor tend to grow at a faster rate than the countries that start off as rich is called as

   		crowding out effect
   		downward effect
   		international effect
   		catch-up effect

4 points

QUESTION 6

1. Technological knowledge

   		is the same thing as human capital.
   		can be discovered but it can never be kept secret.
   		is a determinant of productivity.
   		does not play a role in the relationship that economists call theproduction function.

4 points

QUESTION 7

1. Productivity is

   		total production in the nation
   		world production
   		the quantity of goods and services produced from each unit of labor input
   		average production in the economy

4 points

QUESTION 8

1. In one day Amazing company produced 50 shirts in 250 labor hours. What is Amazing company's productivity?

   	a.	1/5 shirts per hour
   	b.	5 hours per shirts
   	c.	50 shirts
   	d.	5 shirts.

4 points

QUESTION 9

1. Tools and equipment purchased by a local factory is called as

   		physical capital.
   		human capital.
   		the production function.
   		foreign direct investment.

4 points

QUESTION 10

1. All else equal, which of the following would tend to cause real GDP per person to rise?

   		encouraging inward-oriented trade policies
   		an increase in investment in human capital
   		a weakening of property rights
   		discouraging outward oriented trade policies

4 points

QUESTION 11

1. 
   

   An American starts a Software firm in Albania and also manages it's affairs.This would be the example of

   		foreign direct investment. American saving is used to finance Albanian investment.
   		foreign direct investment. American saving is used to finance American investment.
   		foreign portfolio investment. American saving is used to finance Albanian investment.
   		foreign portfolio investment. American saving is used to finance American investment.

4 points

QUESTION 12

1. People in Japan purchased stock of Apple company based in the U.S.This money is being used to meet the expenses on research and development of the company. The people from Japan who purchased these stocks engaged in

   	a.	Foreign Indirect Investment.
   	b.	Foreign Direct Investment.
   	c.	Foreign Domestic Investment.
   	d.	Foreign Portfolio Investment.

4 points

QUESTION 13

1. 
   

   Refer to the information below for the economy of Greenland:

   Real GDP per person in 2018=$7,250

   Real GDP per Person in 2017=$7,050

   By what percentagethe real GDP per person grow in this economy?

   		1.0 percent
   		1.5 percent
   		2.8 percent
   		6.0 percent

4 points

QUESTION 14

1. Table:Below is the information of an imaginary economy where a typical consumer basket consist of2 coolers and 4 water bottles.
   
   

   Year	Price of a Cooler	Price of a Waterbottle
   2016	$24	$9
   2017	$30	$11
   2018	$32	$12

   
   

   Refer to Table.If 2016is the base year, then the consumer price index was

   	a.	100 in 2016,123.81in 2017 and 133.33in 2018.
   	b.	36 in 2016,44in 2017 and 48in 2018.
   	c.	84.14 in 2016,104.67 in 2017 and XXXXXXXXXXin 2019.
   	d.	48 in 2016,60in 2017 and 64in 2018.

4 points

QUESTION 15

1. In an imaginary economy of Tealand, the CPI in 2015 was 130 and the inflation rate was 3% between XXXXXXXXXXBased on this information, we can say that their CPI in 2016 was

   	a.	133.90.
   	b.	133.33.
   	c.	126.10.
   	d.	127.00.

4 points

QUESTION 16

1. Which one of the following calculates the CPI (Consumer Price Index) in the U.S?

   	a.	BLS (Bureau of Labor Statistics)
   	b.	BNPS (Bureau of National Price Standards)
   	c.	Fed (Federal Reserve)
   	d.	CBO (Congressional Budget Office)

4 points

QUESTION 17

1. Table.The table below applies to an economy with only two goods — Mixed Rice and Noodles. The fixed basket consists of 4 plates of mixed rice and 8 plates of noodles.

   Year	Price of a Plate ofMixed Rice	Price of a Plate ofNoodles
   2017	$5.00	$3.00
   2018	5.50	3.30
   2019	5.61	3.63

   
   

   Refer to Table. If the base year is 2017, then the economy’s inflation rate in 2018is

   	a.	10.91 percent.
   	b.	20 percent.
   	c.	10 percent.
   	d.	5 percent.

4 points

QUESTION 18

1. For an imaginary economy, the value of the consumer price index was 150 in 2013 and 153 in 2014. The economy’s inflation rate for 2014 was

   	a.	5 percent.
   	b.	2 percent.
   	c.	0.2 percent.
   	d.	0.5 percent.

4 points

QUESTION 19

1. Ronald spends $20,000 for some goods and services in the year 2009. To buy the same goods and services he spends $23,100 in 2014. What is Ronald's 2014 spending in 2009 dollars?The consumer price index was 220 for 2009 and 231 for 2014.

   	a.	$19,047.
   	b.	$22,000.
   	c.	$24,255.
   	d.	$20,952.

4 points

QUESTION 20

1. Production of a car in Ohio will have an impactin

   	a.	the U.S. GDP deflator, but not the U.S. CPI.
   	b.	the U.S. CPI, but not the U.S. GDP deflator.
   	c.	both the U.S. GDP deflator and the U.S. CPI.
   	d.	neither the U.S. GDP deflator nor the U.S. CPI.

4 points

QUESTION 21

1. To calculate the CPI, the Bureau of Labor Statistics uses

   	a.	the prices of goods andservices bought by government over a period of time.
   	b.	the prices of goods and services bought by a typical consumer over a period of time.
   	c.	the prices of goods andservices bought by a typical producer over a period of time.
   	d.	the prices of goods andservices bought by consumers, producers and government over a period of time.

4 points

QUESTION 22

1. By computing CPI we are trying to measure

   	a.	the cost of living for a typical buyer.
   	b.	the relative price of producer goods.
   	c.	the costs of production for a typical seller.
   	d.	the relative prices of consumer goods.

4 points

QUESTION 23

1. In 2011,a toy drone could be bought for $15 each.The same drones are available today and the price increased at exactly the rate of inflation. If the CPI in 2011 was 225 and today 256 then what is the price of that drone today?

   	a.	$13.18
   	b.	$38.40
   	c.	$17.07
   	d.	$11.38

4 points

QUESTION 24

1. The CPI is a measure of the overall cost of the goods and services bought by

   	a.	a typical consumer, and the CPI is computed and reported by the Department of the Treasury.
   	b.	typical consumers and typical business firms, and the CPI is computed and reported by the Department of the Treasury.
   	c.	typical consumers and typical business firms, and the CPI is computed and reported by the Bureau of Labor Statistics.
   	d.	a typical consumer, and the CPI is computed and reported by the Bureau of Labor Statistics.

4 points

QUESTION 25

1. Table:The table below is for an imaginary economy of Orangeland where a typical consumer basket consists of 2 blankets and 10 coffees.

   Year	Price of a Blanket	Price of a Coffee
   2017	$40	$3
   2018	$45	$4
   2019	$50	$5

   
   

   Refer to Table. If the base year is2018, then the economy’s inflation rate in 2019 was

   	a.	25.00 percent.
   	b.	13.98 percent.
   	c.	20.00 percent.
   	d.	15.38 percent.