1. Use the information in the table below to calculate nominal gross domestic product (GDP) for 2018 and real GDP for 2018. Use 2017 as the base year.

Good	2017 Price	2017 Quantity Produced	2018 Price	2018 Quantity Produced
Wheat	$1	200	$1.5	250
Corn	$2	300	$2	325
Milk	$4	100	$5	150

What is the 2018 real GDP?

Group of answer choices

$1775

$1500

$1225

not enough information

2. The governor decides to increase funding for education. However, this will mean decreasing funding for infrastructure.

Group of answer choices

This shows comparative advantage

This shows incentives.

This shows markets

This shows tradeoffs

3. The opportunity cost of buying a good is

Group of answer choices

The sum of values of all the other goods you could have purchased

The value of the next -best alternative you could have purchased

Irrelevant since you will purchase your highest-valued good

The average of values of all the other goods you could have purchased

4. Flag question: Question 4

Number of Trucks	Number of Deliveries
0	1
1	20
2	30
3	36
4	38
5	38

The marginal product of the third truck is ________ deliveries.

Group of answer choices

2

6

10

26

5. Which of the following would cause the demand curve to shift to the right?

Group of answer choices

Income decreases for an inferior good.

Income decreases for a normal good.

Tastes and preferences for the good decrease.

The price of a substitute decreases.

6. Which of the following can cause both a shift in supply and a shift in demand?

Group of answer choices

the number of firms in an industry

tastes and preferences

income changes

expectations of future prices

7. How is real GDP different from nominal GDP?

Group of answer choices

Real GDP is adjusted for inflation, and nominal GDP is just measured in current prices.

Real GDP includes goods and services, and nominal GDP only includes goods.

Real GDP averages income over time, and nominal GDP is just for this year.

No answer text provided.

8. Which of the following would not be included in GDP?

Group of answer choices

Bob hires a construction company to build his home.

Michael pays the neighbor kid to mow his yard.

Alex buys some cheese and dough to bake a pizza at home.

Elyse buys some shoes.

9. Consider the market for bananas. Suppose that both the supply of and demand for bananas increase simultaneously. Which of these effects is certain?

Group of answer choices

The equilibrium price of bananas will increase.

The equilibrium price of bananas will decrease.

The equilibrium quantity of bananas will increase.

The equilibrium quantity of bananas will decrease.

10. What is a possible problem with using faulty assumptions when building an economic model?

Group of answer choices

The model could become too popular.

It could lead to poor economic decisions.

It means we never have to rebuild the model.

It could cause too much wealth.

11. Suppose there is high unemployment. With respect to the PPF, what will happen?

Group of answer choices

The PPF will shift inward.

The PPF will shift outward.

We will produce at a point inside the PPF.

We will produce at a point outside the PPF.

12. What can be said about scarcity?

Group of answer choices

Scarcity forces us to make choices.

Scarcity doesn't affect the super wealthy.

Scarcity only affects commodities such as oil.

Scarcity generally doesn't affect our day-to-day living.

13. Which of the following situations illustrates an incentive?

Group of answer choices

Dave snacks all afternoon and isn't hungry for dinner.

Dirk's children misbehave during dinner.

Lee gives his children candy if they behave during dinner.

Jaime goes to a restaurant for dinner.

14. Which of the following will cause a movement along a good's supply curve?

Group of answer choices

The price of an input increases.

The price of the good increases.

The production process of the good becomes more efficient.

More firms enter the market.

15. Which of the following would be studied in macroeconomics?

Group of answer choices

national output of goods and services

business decisions

individual markets

consumer buying choices

16. A country with a small per capita gross domestic product (GDP)

Group of answer choices

is economically healthy.

produces too much.

has low living standards.

is efficient.