Part 1   (1 point)

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Suppose that nominal GDP was $9250000.00 in 2005 in Orange County California. In 2015, nominal GDP was $11000000.00 in Orange County California. The price level rose 1.50% between 2005 and 2015, and population growth was 4.25%. Calculate the following figures for Orange County California between 2005 and 2015. Give all answers to two decimals.

a. Nominal GDP growth was _________ %.

Part 2   (1 point)

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b. Economic growth was __________ %.

Part 3   (1 point)

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c. Inflation was ___________ %.

Part 4   (1 point)

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d. Real GDP growth was ________ %.

Part 5   (1 point)

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e. Per capita GDP growth was __________ %.

Part 6   (1 point)

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f. Real per capita GDP growth was __________ %.

1)Which of the following is not an example of the political economy approach (or critical medical anthropology) view of disease?

A) Looks at the link between disease and both micro and macro level social and cultural forces

b) Looks at how globalization affects health

c) Looks at the ways that socioeconomic status gives health advantages to some at the disadvantage of others

D) Looks at how life is shaped only by local circumstances

2) The term political/ecology has been suggested as a term to describe the incorporation of political economic issues into the ecological/evolutionary model. True or False?

Explain the factors that affect the firm's total cost, and explain the behaviour of a typical firms costs in the short run and long run. In addition, what determines the behaviour of a typical firm's costs in the short run and long run.

Since both taxes and subsidies create a deadweight loss to society, why are they used to correct negative and positive externalities? Ensure to explain whether society is better off or worse off and why.

How do free competitive markets maximize social welfare? In addition, what are market failures and how do they affect social welfare?

Select any engineering company and assume you are an engineering manager working in that company. Your department has been awarded an external grant of $1M to select 1 project of your choice. You have identified 5 mutually exclusive projects to choose from. However, you can only select one and you have decided to select the 1 project by using NPV-based analysis. For this question, you do not have to calculate NPV or show any calculations.

(a) List your 5 hypothetical project choices with hypothetical NPV values.

(b) Select your 1 project and explain why you have selected that project.

(c) Explain the value of using NPV for such economic analysis.

Assume that the following balance sheet portrays the state of the banking system. The banks currently have no excess reserves.

What is the required reserve ratio?

10%

40%

5%

25%

Suppose that the Federal Reserve (the "Fed") sells $4 million of bonds to a bond dealer, who pays the Fed by writing a check against the funds in her checking account. What is the initial impact of this transaction?

The banking system's holdings of securities fall by $4 million, and the banking system's total reserves rise by $4 million.

Checkable deposits fall by $4 million, and the banking system's holdings of securities fall by $4 million.

Checkable deposits fall by $4 million, and the banking system's total reserves fall by $4 million.

The banking system's holdings of securities rise by $4 million, and the banking system's total reserves fall by $4 million.

As a result of the Fed's sale of $4 million of securities, checkable deposits in the banking system can potentially   by as much as   .

Firm A: initial pollution level = 120, cost to reduce pollution 1 unit = $75

Firm B: initial pollution level = 150, cost to reduce pollution 1 unit = $100

a. Assume that the government decides to cut pollution by 1/3, telling firms that “Starting next year, you will only be permitted to emit 2/3 as much pollution as you currently do.” What is the cost for each firm under this policy?

b. Suppose instead that the government issued permits to each company, entitling them to emit up to 2/3 of their current pollution output. Firms may buy and sell these permits. What is the possible range of prices for which both firms would be willing to buy/sell?

c. Assume that the firms agree to a price in the range you found in part b. What firm buys permits and which sells? How many permits are exchanged?

d. What is the total cost of pollution reduction now? Hint: your answer should make sense when you compare it to part a

Outline how counter cyclical fiscal policy and balanced budget fiscal policy would close a recessionary gap. Be specific on goals, how each theory would achieve those goals, how they would close the gap, and potential negative effects.

In what way were the 1990s like the 1920s? Also, list multiple ways in which the two were different

Question 2

By Economic Growth we mean that:

1 The quality of the goods and services offered in the country is increasing.

2 The GDP per capita is growing from year to year.

3 There are more goods and services offered in the country.

4 The GDP is growing each year.

Question 3

Innovation is the key to economic growth because...

[Multiple correct answers]:

1 It allows greater output from the same labor and capital.

2 Many people can benefit from it simultaneously.

3 It has no decreasing marginal return (or it decreases only in the long run relative to capital and labor).

4 It allows higher productivity.