economics test

Problem 2 GDP (12 points) Consider the following table, which has data for Canada in 2008: Item Billions of dollars Wages paid to labour 815 Consumption expenditure 885 Net domestic income at factor cost 1,210 Investment 304 Government expenditure 357 Net exports 32 Depreciation 202 a) Calculate Canada's GDP in 2008 (8 pts) b) Explain the approach (expenditure or income) that you used to calculate the GDP (4 pts)Problem 1 PPF (3 points) The Antioquia region of Colombia produces coffee beans, and in this example the same land can also be used to grow pepper. The table below shows production possibilities: Coffee {kilograms per day) 30-0 and 20-0 and 100 and 0 and Pepper (kilograms per day) 0 50 100 150 a) Draw a graph showing Antioquia's PPF and explain how it illustrates scarcity. b) If Antioquia produces 150 kilograms of coffee a day. how much pepper must it produce to achieve production efficiency? Problem 3 Using GDP (12 points} We reviewed changes in GDP in class using graphs like the one below. The charts below are missing some key features. Complete the charts below as indicated: a) THE BUSINESS CYCLE: Label the axes, draw an imagined sample curve over time, and identify,r expansion, recession, peak and trough parts of the curve. (6 pts) b) POTENTIAL GDP: show the axes that measure GDP over time, and show generally what Canada's Potential and Real GDP have looked like recs-nil};r (hint: it must have risen. fallen or done both} (6 pts) Problem 4 Supply and Demand (8 points) The mobile phone was invented in 1973, and during the rst 20 years of its life, few people used one, except as a car phone. But during the 25 years, the use of mobile phones increased dramatically and the price of mobile phone service fell. a. Are the substitutes for mobile phones? If so, provide an example. b. Dc mobile phones have complements? If so provide an example. c. What increased the demand for mobile phones? Provide examples. d. What increased the quantity demanded for mobile phones? Illustrate the effect by using the demand curve for mobile phones