1.Consider tablets which are used by a majority of consumers. Suppose that due to the development of 5G technology, tablets underwent a major advance from 2020 to 2021 in terms of the number of functions they could do. The tablets in 2021 sold at the same price as those in 2020. Which of the following would tend to increase in 2021 as a result of this major advance?

Group of answer choices

CPI

Purchasing power of money

GDP deflator

None of the above

2.Suppose a country enters a major recession where the number of unemployed increases a lot and the wages of jobs fall a lot. Assuming no other major changes, what would be the effect of this change on a country's CPI?

Group of answer choices

Increase

Decrease

Stays the same

Unclear

3.Consider the country of Vasquez-land. We know the CPI for the following years:

2016: Base year 2017: 108 2018: 120 2019: 132 2020: 110

How much did prices rise from 2016 to 2020?

Group of answer choices

10%

24%

46%

Not enough information

4.Of the items below, which one would be included in the United States' CPI but not the United States' GDP deflator?

Group of answer choices

Military tank made in North Carolina

Water thermos made in Arizona bought by American consumers

Table produced in Italy bought by French consumers

Ikea table produced in Sweden bought by American consumers

5.Which of the following would raise real GDP in 2021?

Group of answer choices

Increase in the number of children's instructors in 2021 asking only to be paid in cash rather than checks or credit cards

Decrease in the number of hours per week in 2021 so people have more time for leisure

Decrease in income inequality in 2021

Increase in the number of instructors who break windows on college campuses in 2021 so that repairmen need to be hired to fix the messes

6.Recall two major trends in developed economies: globalization and inequality. According to what was stated in class, has globalization led to more inequality?

Group of answer choices

No

Yes, both between and within countries

Yes, but only within countries

Yes, but only between countries

7.Suppose you have two countries: A and B. Country A has a GDP of $1,000,000. Country B has a GDP of $4,000,000. Country A has a growth rate of 3.5% while country B has a growth rate of 0%. How many years will it take for country A's GDP to catch up to country B's GDP?

Group of answer choices

20 years

28 years

40 years

Not enough information

8.Consider the time period from 2015 to 2020. Suppose inflation has been about 2% per year over those three years. As a result, the purchasing power of money would have increased from 2015 to 2020.

Group of answer choices

True

False

9.Suppose we have the country of Daniela-opolis. Further suppose that for the year 2020 we have the following:

• People in Daniela-opolis spend $100,000,000 on food and cars produced in Daniela-opolis in 2020
• Firms in Daniela-opolis spend $100,000,000 on equipment produced in Daniela-opolis in 2020
• Government in Daniela-opolis spends $10,000,000 on uniforms produced in Daniela-opolis in 2018
• People in Daniela-opolis also spend $100,000,000 on food and cars produced in Paulina-ville in 2020
• People in Paulina-ville spend $50,000,000 on goods produced in Daniela-opolis in 2020
• People in Paulina-ville spend $33,000,000 on food and cars produced in Paulina-ville in 2020

Paulina-ville is a separate country. What is the GDP for Daniela-opolis for 2020?

Group of answer choices

$170,000,000

$190,000,000

$250,000,000

$260,000,000

10.For the country of Daniela-opolis in the previous question, what percent of GDP is net exports?

Group of answer choices

-33.3%

-20%

-10%

5%

11.For the country of Daniela-opolis in question 35, what percent of GDP is consumption and investment?

Group of answer choices

80%

100%

120%

133%

12.Consider in the US how there are 3 workers for each Social Security recipient. By 2035, there will be 2 workers for each Social Security recipient. If labor productivity fails to increase enough, which of the following might be done by the government?

Group of answer choices

A decrease in social security spending

An increase in income taxes

A decrease in federal grants for college

All of the above

13.Which of the following is FALSE concerning the CPI?

Group of answer choices

It stands for Consumer Price Index

It can be used to calculate the inflation rate

It will tend to rise if food prices increase

None of the above are false

14.Suppose in 1998 a player named Michael Jordan was paid $31,000,000 in that year (1998 dollars). In 2020, another player named Steph Curry was paid about $43,000,000 in that year (2020 dollars). If the CPI in 1998 was 163 and the CPI in 2020 is 258.8, how does Curry's salary compare with Jordan's in terms of purchasing power?

Group of answer choices

Curry's salary is about half that of Jordan's

Curry's salary is about 25% smaller than Jordan's

Curry's salary is about 14% smaller than Jordan's

Curry's salary is about 40% larger than Jordan's