Question

1) In which of the three market arenas is each of the following goods traded?

A) U.S Treasury Bonds

B) An Amazon Kindle

C) A Harley-Davison Soft tail motorcycle

D) The business knowledge of Dallas Mavericks%u2019 owner Mark Cuban

E) Shares of Google stock

F) The crop-harvesting abilities of an orangen picker in Florida

2) Explain why imports are subtracted in the expenditure approach to calculating GDP (Gross domestic product)?

3) Go to www. bls.org and click on the links for the state and area employment and unemployment. Look at your home state and describe what changes have taken place in the workforce (in this case California). Has the labor force participation rate gone up or down? Are the state%u2019s experiences the same as the rest of the country? Provide an explanation of why your state%u2019s experiences are the same as or different from the rest of the country?

4) The following questions refer to this table:

Aggregate Consumption Planned

Output/ Income investments

2,000 2,100 300

2,500 2,500 300

3,000 2,900 300

3,500 3,300 300

4,000 3,700 300

4,500 4,100 300

5,000 4,500 300

5,500 4,900 300

A) At each level of output, calculate saving. At each level of output, calculate unplanned investment (inventory change).

What is likely to happen to aggregate output if the economy produces at each of the levels indicated? What is the equilibrium level output?

5) For each of the following, determine whether it is an asset or a liability on the accounting books of a bank. Explain why in each case.

Cash in the vault

Demand deposits

Savings deposits

Reserves

Loans

Deposits at the Federal Reserve