Question 1

(Hint: read carefully.) In a world with many close substitutes in consumption for wheat crackers, wheat crackers will tend to have

Group of answer choices

no change in quantity demanded caused by a small change in price

a large change in quantity demanded caused by a small change in price

a small change in quantity demanded caused by a large change in price

no change in quantity demanded caused by a large change in price

Question 2

When calculating income elasticities using the midpoint method, normal goods will have a result that is _____ and inferior goods will have a result that is _____.

Group of answer choices

less than zero; greater than zero

greater than zero; greater than zero

greater than zero; less than zero

less than zero; less than zero

Question 3

The price for widgets rises from $40 to $50, and the quantity demanded for widgets decreases from 345 to 325. The price elasticity of demand for widgets calculated with the midpoint method is approximately

Group of answer choices

0.27

20.0

1.47

1.89

Question 4

Suppose that potato chips and sparkling water are known to be complements (and are therefore not "unrelated goods") in consumption for one another. Which of the following is a possible cross-price elasticity of demand between the two goods?

Group of answer choices

-5.59

0.00

0.25

0.65

Question 5

If demand is inelastic and price increases:

Group of answer choices

total revenue is always unchanged

demand always becomes elastic

total revenue increases

total revenue decreases

Question 6

When supply is price inelastic:

Group of answer choices

the percentage change in price is less than the percentage change in quantity supplied

a relatively small change in quantity supplied will occur in response to a change in price

demand must be price inelastic

a number greater than 1 will result from using the midpoint method to calculate price elasticity of supply

Question 7

A local corner store knows that a 9-percent increase in the price for soda results in a 72-percent decrease in the number of sodas purchased. Approximately what is the price elasticity of demand for soda at the corner store?

Group of answer choices

7.20

6.00

8.00

5.00

Question 8

A 20-percent increase in the price for tea leads to a 10-percent increase in the quantity of coffee demanded. It appears that:

Group of answer choices

cross-price elasticity of demand for tea and coffee is 1.50.

cross-price elasticity of demand for tea and coffee is -0.50.

cross-price elasticity of demand for tea and coffee is 0.50.

cross-price elasticity of demand for tea and coffee is -1.50.

Question 9

If the supply curve for a government service is perfectly inelastic, then a decrease in demand will cause the equilibrium price to:

Group of answer choices

stay the same and the equilibrium quantity to fall.

rise and the equilibrium quantity to rise.

rise and the equilibrium quantity to stay the same.

decrease and the equilibrium quantity to stay the same.

Question 10

A demand curve with infinite elasticity would be drawn _____ on a graph.

Group of answer choices

as a horizontal line

as a vertical line

as a gently downward sloping line

as a gently upward sloping line

Question 11

Suppose India has a GDP of $3,000.00 billion (measured in U.S. dollars) and a population of 1 billion. Suppose China has a GDP of $17,500.00 billion (measured in U.S. dollars) and a population of 1.1 billion. Calculate per capita GDP for each country.

Group of answer choices

India = $0.33; China = $0.06

India = $330.00; China = $1,522.30

India = $3,000.00; China = $15,909.09

India = $3,000,000,000.00; China = $15,909,090,909.09

Question 12

Consumption (C) includes

Group of answer choices

the amount spent on domestically produced automotive vehicles by U.S. consumers

the amount spent by the government on subsidizing healthcare

the amount U.S. businesses import from other countries

the amount spent on taxes by naturalized U.S. citizens

Question 13

Say Mexico has a GDP of 23,000 billion Mexican pesos, and a population of 125 million. The exchange rate is 19 Mexican pesos per U.S. dollar. Using the information from the previous two sentences, the total GDP of Mexico as measured in U.S. dollars is approximately _____. (Note: read each response carefully--some of the options are expressed in billions and some are expressed in millions.)

Group of answer choices

$1,210 billion

$23,125 billion

$1,318 billion

$437,000 billion

Question 14

Say Mexico has a GDP of 23,000 billion Mexican pesos, and a population of 125 million. The exchange rate is 19 Mexican pesos per U.S. dollar. Using the information from the previous two sentences, the per capita GDP of Mexico as measured in U.S. dollars is approximately _____.

Group of answer choices

$9.70

$10,138.46

$6,507.69

$9,684.21

Question 15

Say you have a GDP amount reported in terms of a foreign currency. To convert that GDP amount into terms of U.S. dollars, it is necessary to divide the GDP amount by _____.

Group of answer choices

per capita GDP

the U.S. population

the exchange rate of the foreign currency per U.S. dollar

the foreign country's population

Question 16

Which of the following is most likely to not be counted as part of GDP?

Group of answer choices

A consumer buying a new computer from a retail store

Exports minus imports

Doing your neighbor the favor of cleaning out their gutters

A county government buying new gravel to begin resurfacing a roadway

Question 17

Which of the following is counted as part of GDP?

Group of answer choices

A purchase of raw aluminum by a company that uses the aluminum to produce soda cans

A purchase of a pirated film on the black market

The act of mowing your neighbor's lawn for free as a favor

An organic corn growing operation exporting its crop to Mexico

Question 18

Suppose consumption equals $688 billion, investment equals $101 billion, government spending equals $230 billion, imports equal $200 billion, and exports equal $144 billion. Using that information, Gross Domestic Product equals

Group of answer choices

$1,075 billion

$963 billion

$413 billion

-$1,019 billion

Question 19

Adding together durable goods, nondurable goods, services, structures, and the change in inventories is the way to calculate

Group of answer choices

the exchange rate

net exports only

the production measure of GDP

the consumption measure of GDP

Question 20

Gross Domestic Product equals $451 billion. If consumption equals $341 billion, investment equals $68 billion, and government spending equals $64 billion, then

exports exceed imports by $22 billion

imports exceed exports by $22 billion

imports exceed exports by $12 billion

exports exceed imports by $12 billion

Question 21

Use the following table to calculate real GDP for 1960, 2005, 2010, and 2020. Express your answers numerically. For partial credit, show your work.

Year	Nominal GDP (billions of dollars)	GDP Deflator (2005 = 100)
1960	499.2	19
2005	11,500.0	100
2010	14,840.0	129
2020	17,238.1	131

Real GDP in 1960 = $_____ billion.

Real GDP in 2005 = $_____ billion.

Real GDP in 2010 = $_____ billion.

Real GDP in 2020 = $_____ billion.