1. Back in 1993, the movie Jurassic Park earned $47 million in its first weekend. Using the table below, choose the alternative with the equivalent earnings in 2018 dollars.

Table 1: CPI

Year 1993 2018

CPI 144 251

(a) $ 11,797 million

(b) $ 90 million

(c) $ 26.9 million

(d) $ 6,768 million

(e) $ 81.9 million

2. Why do taxes generate a deadweight loss?

(a) because taxes generate revenue for the government.

(b) because taxes distort incentives of consumers and producers.

(c) because usually taxes aren't calculated using optimal taxation.

(d) because taxes tend to target goods that have elastic demands.

(e) because the revenue of the government is not well spent.

3. Which one of the following represents a positive statement when it comes to macroeconomics:

(a) competitive markets are efficient.

(b) competitive markets should be fair.

(c) the minimum wage cannot sustain a decent standard of living.

(d) the government should fight unemployment harshly.

(e) GDP growth in the U.S. is too low.

4. When the price of an imported car decreases,

(a) the CPI decreases, but the GDP deflator is not affected directly.

(b) both CPI and GDP deflator decrease.

(c) the CPI decreases, but the GDP deflator increases.

(d) the trade deficit is reduced, increasing GDP.

(e) CPI inflation increases, but inflation measured with GDP deflator doesn't change.

5. Which one of the following statements about GDP is false

(a) it is expressed in dollars.

(b) a new house built this year should add to this year's GDP.

(c) intermediate inputs are not counted in the GDP.

(d) a car manufactured by a foreign company in the U.S. last year and sold this year adds to this year's GDP.

(e) does not include goods and services traded outside the market