Questions from General Economics

Q: Assume the following data for a country: total population, 500

Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-...

Q: Suppose that the natural rate of unemployment in a particular year is

Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okun’s law to determine the size of the GDP gap in percentage-poin...

Q: If the CPI was 110 last year and is 121 this year

If the CPI was 110 last year and is 121 this year, what is this year’s rate of inflation? In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year’s rate of inflatio...

Q: How long would it take for the price level to double if

How long would it take for the price level to double if inflation persisted at (a) 2, (b) 5, and (c) 10 percent per year?

Q: If your nominal income rose by 5.3 percent and the

If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase? If your nominal income rose by 2.8...

Q: Suppose that the nominal rate of inflation is 4 percent and the

Suppose that the nominal rate of inflation is 4 percent and the inflation premium is 2 percent. What is the real interest rate? Alternatively, assume that the real interest rate is 1 percent and the n...

Q: If the inflation premium is 2 percent and the nominal interest rate

If the inflation premium is 2 percent and the nominal interest rate is 1 percent, what is the real interest rate? What if the inflation premium is 3 percent while the nominal interest rate is 0.5 perc...

Q: Use the following demand schedule to determine total revenue and marginal revenue

Use the following demand schedule to determine total revenue and marginal revenue for each possible level of sales: a. What can you conclude about the structure of the industry in which this firm is...

Q: Why do national income accountants compare the market value of the total

Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production? What problem is posed by any comparison over time o...

Q: A purely competitive firm whose goal is to maximize profit will choose

A purely competitive firm whose goal is to maximize profit will choose to produce the amount of output at which: a. TR and TC are equal. b. TR exceeds TC by as much as possible. c. TC exceeds TR by a...