1. Suppose a particular model of car contains $17,500 worth of raw materials and requires $15,000 worth of labor to produce. This car sells for $35,000. Which dollar amount would be used to calculate this transaction's contribution to gross domestic product (GDP)?

Group of answer choices

$2,500

$17,500

$20,000

$32,500

2. GDP can be defined in different ways. Which sentence is correct?

Group of answer choices

GDP is the value of final and intermediate goods produced in the economy during a given period.

GDP is the sum of labor income, capital income and indirect taxes during a given period.

The production side definition of GDP is equivalent to the income side one if and only if we are assuming that the firms do not hold inventories.

GDP is equivalent to the population wealth.

3. A production possibilities curve is a graphical representation of choices. Points inside the curve represent underemployment or unemployment.

Group of answer choices

True

False

4. The annual growth rate of GDP was 0.8% in 2001, so the positive growth rate indicates there was in fact no "recession of 2001."

Group of answer choices

True

False

5. The rich spend more than the poor since they have more income to spend, therefore a tax cut designed to revive the economy from a recession should be targeted towards the rich.

Group of answer choices

True

False

6. The growth rate of nominal GDP is always greater than the growth rate of real GDP because changes in nominal GDP reflect both price and quantity changes.

Group of answer choices

True

False

7.

Points	X	Y
A	0	1200
B	100	900
C	200	600
D	300	300
E	400	0

Please refer to this table to answer the following two questions. Please put your answer in the blank. No need to show the work.

a) What is the slope from point A to point B?

________

8. Based on the table from the last question, what is the opportunity costs of producing good X over Y? Please put your answer in the blank.

9.

	Output level		Opportunity Cost
	Food	Cars	Food	Cars
Canada	100	20
U.S.	500	50

10. A local grocery store orders 200 cases of Pepsi each week and sells them at a price of $6.00 per case. At the end of the first week, they have only sold 160 cases. What economic situation is the grocery store facing and what will have to happen to the price in order for equilibrium to be attained?

Group of answer choices

shortage; price will rise

surplus; price will fall

nothing since the market is in equilibrium.

surplus; price will rise

shortage; price will fall

11. Assume the price of Coke decreases.

Group of answer choices

The quantity demanded of Pepsi decreases.

The demand for Pepsi increases.

The demand for Pepsi decreases.

The quantity demanded of Pepsi increases.

12. Demand and supply curves can also be represented with equations. Please use these equations to answer the following four questions.

Suppose that the quantity demanded, Qd, is represented by the following equation: Qd = 60 - 2P

The quantity supplied, Qs, is represented by the equation Qs = P

What is equilibrium price?

13. Based on the previous question, what is the equilibrium quantity?

14. What is the biggest component of GDP?

Group of answer choices

Consumption [C]

Investment [I]

Government purchases [G]

Net exports [NX]

15. What would we expect to happen to the price and quantity of Apple iPhones if the price of Samsung smartphones increases and Apple develops a newtechnologythat makes its iPhone production process more efficient?

Group of answer choices

The equilibrium price will go down and the equilibrium quantity will be indeterminate.

The equilibrium price will be indeterminate and the equilibrium quantity will go up.

The equilibrium price will go up and the equilibrium quantity will be indeterminate.

The equilibrium price will be indeterminate and the equilibrium quantity will go down.

The equilibrium price will go up and the equilibrium quantity will go up.

16. Use the information in the table below to calculate the real 2015 gross domestic product (GDP) by treating 2009 as the base year. (save 1 decimal place)

Year2006	Nominal GDP $13,855.9	GDP deflator 95
2007	$14,477.6	97
2008	$14,718.6	99
2009	$14,418.7	100
2010	$14,964.4	101
2011	$15,517.9	103
2012	$16,155.3	105
2013	$16,663.2	107
2014	$17,348.1	109
2015	$17,937.8	110