1. A country’s production function depends on labor (L), physical capital (K), human capital (H), and natural...

1. A country’s production function depends on labor (L), physical capital (K), human capital (H), and natural resources (N). When L = 200, K = 10, H = 30, and N = 4, output is 80. What would output be if L = 700, K = 35, H = 105, and N = 14?

A. 30 B. 60 C. 240 D. 280 E. 320

F. More than one of A-E is possible G. None of A-G is possible ______

2. A nation’s real GDP is 2,000,000 and its GDP deflator is 125. What is its nominal GDP?

A. 1,600,000 B. 1,999,875

C. 2,000,000 D. 2,000,125

E. 2,500,000 F. 250,000,000 ______

3. Lockheed Martin is an engineering company based in Maryland that builds military planes. If the price of F-16 jets produced by Lockheed Martin increases, then US CPI is likely to ____ and US GDP deflator is likely to _____.

A. Rise; Rise B. Rise; Fall

C. Fall; Rise D. Fall; Fall

E. Rise; Stay the same F. Fall; Stay the same

G. Stay the same; Rise H. Stay the same; Fall

Expert Solution

Rahul Sunny answered 1 year ago

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