1 Ice Cube is a talented performer who can sing and act He c

1) Ice Cube is a talented performer who can sing and act. He could earn $5,000,000 singing or $4,000,000 acting. Ice-T can also sing and act. He could earn $5,000,000 singing or $3,000,000 acting. Vanilla Ice can sing and dance. He could earn $3,000,000 singing or $100,000 dancing. Assuming all three individuals have only their two options listed for work, and can only pursue one of their respective activities, who has the highest opportunity cost of singing?

2) The best measure of GDP to use when comparing standards of living over time is _______ GDP per capita because _______ GDP per capita does NOT take inflation into account.

3) If a nation doubles its GDP per capita in 70 years, what is its annual growth rate?

4) Suppose you purchased a new BMW that was produced in Germany. Using the national spending approach to GDP accounting, this transaction would:

I. increase consumption by the price of the car.

II. increase imports by the price of the car.

III. have no effect on real GDP.

I, II, and III are correct.

5) This summer you have a paid internship for Kia Motors in Canada. For what nation(s) are you contributing to GDP? Assume you are a U.S. citizen.

6) The stock of tools, including machines, structures, and equipment, used to produce output is called:

7) A past policy proposal by President Obama to reduce the cost of community college is an attempt to increase society\'s:

8) You and your friends are keeping employment statistics in the exact same way as the Bureau of Labor Statistics (BLS), and you have the following data at your disposal: last month there were 200 million people, 80% were in the labor force, and 16 million people were classified as unemployed. What is the unemployment rate?

9) Which type of unemployment is likely to be higher when real GDP growth is lower?

10) If the inflation rate is 5%, but people expected inflation to be 3%, then the real rate of return will be:

Solution

Ans9)

Correct answer would be cyclical unemployment as none of the alternative matches hence option D is correct

Ans 10)

Less than equilibrium rate because as per fisher equation Nominal rate=real rate+inflation

Real rate=Nominal rate-inflation

Option A is correct

Ans 7)

Human Capital

Ans 6)

Physical Capital as all tangible assets come under physical capital

Ans 3

According to 70 rule where multiplication between raye and maturity period shoulg be approx make the investment double Hence option A is correct(1%)

Ans 2)

Real , Nominal becasue hen we factor nominal GDP with inflation hence option B is correct