ECON502 QUIZ

QUESTION 1 Given the production function y = 23L what is the marginal product of labour? QUESTION 2 The production function Y = 10.75 10.25 has O A. increasing marginal product O B. increasing returns to scale O C decreasing returns to scale O D. constant returns to scale QUESTION 3 Given the production function Y = KO./L. if K=625 and L=1296, calculate the value of Y (output) QUESTION 4 Given the production function Y = KO./31". the marginal product of labour (YL) is O AYL = 0.25 /0.75 L-0.75 O B. YL = 0.75K-0.25 1 0.25 O CYL = 0.25L-0.75 O D. YL = 0.25 K0.75 L-0.25 QUESTION 5 Given the production function Y = KO.7320-23 calculate the marginal product of capital where K=625 and L=1296QUESTION 6 If the marginal product of labour is 0.14 when K=625 and L=1296, then we can say that O A. we are able to substitute 1 unit of labour for 0.14 units of capital O B. we are able to substitute 1 until of capital for 0.14 units of labour O Ca 1 unit increase in labour will increase output by 0.14 units O D. to increase output by 1 unit we need to increase labour by 0.14 units QUESTION 7 If 1 NZ$ can buy 0.55 UKE, then 1 UKE can but how many NZ$? QUESTION 8 The nominal exchange rate is 0.55 between NZ (domestic country) and the UK. A pint costs $5.40 in NZ and $3.95 in the UK. Calculate the real exchange rate. QUESTION 9 A Big Mac costs $6.00 in NZ (Domestic Country) and $3.09 in the UK. Calculate the PPP predicted exchange rate. QUESTION 10 A closed economy (Y=C+I+G) in equilibrium we can conclude that OAI = S+G O B. / = Y- C+G=S O C. I = Y- C-S OD. / = Y- C-G=SQUESTION 11 If government was to remove tax from interest earned on savings, then what would the expected impact on the loanable funds market be? O A a shift of the supply of loanable funds to the left; an increase in the real interest rate and a decrease in the quantity of loanable funds O B. a shift of the supply of loanable funds to the right; a decrease in the real interest rate and an increase in the quantity of loanable funds " a shift of the demand for loanable funds to the right; an increase in the real interest rate and an increase in the quantity of loanable funds O D. a shift of the demand for loanable funds to the left; a decrease in the real interest rate and a decrease in the quantity of loanable funds QUESTION 12 You are considered unemployed if you are O A. jobless O B. jobless for over a year O "jobless and retraining for a new career at an education provider O D. jobless and actively seeking work QUESTION 13 Structural unemployment is caused by A. fluctuations in the business cycle O B. a fundamental mismatch between the skills workers have and the skills desired by potential employers " The time taken to match workers with jobs O D. improvements in the natural rate of unemployment QUESTION 14 Germany has an adult population of 70.5m of which 44m are employed and 1.72m are unemployed. Calculate the rate of unemployment to 2dp (don't include the $% symbol in your answer). QUESTION 15 Germany has an adult population of 70.5m of which 44m are employed and 1.72m are unemployed. Calculate the labour force participation rate to 2dp (don't include the % symbol in your answer).QUESTION 16 The long-run Phillips Curve O A. shows a positive relationship between inflation and unemployment O B. is associated with inflation expectations " is associated with the natural rate of unemployment O D. shows a negative relationship between inflation and unemployment QUESTION 17 The egalitarian line is O . a theoretical 90 line representing perfect inequality of income O B. a theoretical line showing the relationship between happiness and inequality O " a theoretical 45 line representing perfect equality of income O D. another name for the Lorenze curve QUESTION 18 You estimate the following A = . 17 for the island of Ep11. Given that A + B =0.5 calculate Epii's gini coefficient. QUESTION 19 Based on the greatest happiness principle, the prefered society would be? O A. Impossible to determine O B. 100; 100; 100 O C. 110; 120; 150 O D. 110; 125; 135 QUESTION 20 Based on Rawl's difference principle, the prefered society would be? O A. 99; 200 O B. 75; 150 O . 99; 99 O D. 100; 101