3 Macroeconomics Rowan Core Quiz 6 7 Toontown is the world's biggest wheat producer with a vibrant domestic market as well. The table below shows the demand and supply schedule for the Toontown wheat market (in metric tons). Quantity Quantity Demanded Price Supplied $7 10 11 1. The Federal Government of Toontown decides to impose a $2 tax on wheat to increase revenue for some of its social programs. What will happen in the Toontown wheat market as a result of this $2 tax? (a) Demand will decrease, price will go up and equilibrium quantity will go up. (b) Supply will increase, price will go down and equilibrium quantity will go up. (c) Demand will increase, prices will go up and equilibrium quantity will go down. (d) Supply will decrease, price will go up and equilibrium quantity will go down. 2. The President of Toontown wants to set up a social safety net program for the unemployed workers, but in order to do this, she has to calculate the unemployment rate of the country. Toontown has a population of 260 million people. Of these, 60 million are retired, in the military, institutionalized, or under 16 years old. There are 188 million who are employed and 12 million who are unemployed. What is the unemployment rate? (a) 4 percent (b) 6 percent (c) 9 percent (d) 27 percent Next, the President wants the Economists to estimate the GDP of Toontown. The Economists have the following data in hand (in billions of dollars). onsumption Expenditures $4 500