Question

In the economy of Talikastan in 2015, consumption was $3000, exports were $1200, GDP was $6300,
government purchases were $1300, and investment was $1500. What were Talikastan’s imports in 2015?
a. -$500
b. -$700
c. $700
d. $500

The table below contains data for the country of Batterland, which produces only waffles and pancakes. The
base year is 2013 .
Prices and Quantities
Year Price of Quantity of Price of Quantity of
Waffles Waffles Pancakes Pancakes
2010 $2.00 80 $1.00 100
2011 $2.00 100 $2.00 120
2012 $2.00 120 $3.00 150
2013 $4.00 150 $3.00 200
6. Refer to Table 23-6. In 2010, this country's real GDP was
a. $620.
b. $260.
c. $400.
d. $630.
7. If nominal GDP is $12 trillion and real GDP is $10 trillion, then the GDP deflatoris
a. 83.33, and this indicates that the price level has decreased by 16.67 percent since the base year.
b. 83.33, and this indicates that the price level has increased by 83.33 percent since the base year.
c. 120, and this indicates that the price level has increased by 20 percent since the base year.
d. 120, and this indicates that the price level has increased by 120 percent since the base year.

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been chosen as the
base year. In 2012, the basket’s cost was $80.00; in 2013, the basket’s cost was $84; and in 2014, the basket’s
cost was $87.60. The value of the CPI was
a. 100 in 2012.
b. 105 in 2013.
c. 109.5 in 2014.
d. All of the above are correct.

The table below pertains to Pieway, an economy in which the typical consumer’s basket consists of 15 bushels of
peaches and 10 bushels of pecans.
Year Price of
Peaches

Price of
Pecans
2012 $11 per bushel $6 per bushel
2013 $9 per bushel $10 per bushel
10. Refer to Table 24-2. The cost of the basket in 2012 was
a. $200.
b. $225.
c. $235.
d. $212.50.
11. Refer to Table 24-2. If 2013 is the base year, then the CPI for 2012 was
a. 95.7.
b. 100.0.
c. 90.0.
d. 213.6.

 

Answer 1