ECO 1102 Study Guide - Midterm Guide: Loanable Funds, Production Function, Gdp Deflator

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ECO 1102 Full Course Notes

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Answer key: b, d, a, c, c, b. Multiple choice (60 points; 2 points each: d, d, d, d, b, c. Funds (6 points for explanation) the initial equilibrium in the market for loanable funds is at point. A in the graph, with an equilibrium interest rate of and an equilibrium quantity of saving and investment of . If the government budget goes from surplus to deficit, there will be less public and national saving in the economy at each interest rate, and the supply curve for saving will shift left from to . This will cause a shortage of funds and put upward pressure on the interest rate. A new equilibrium will be established at point b, with a higher equilibrium interest rate, , and a lower equilibrium level of saving and investment, . The per-kilogram price of pork in 2014 is 2. 50 .

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business law

QUESTION 18

Partnership property:

	a.	is always personal property.
	b.	is owned by the partners as tenants in partnership.
	c.	can be pledged to a partner's personal creditor.
	d.	all of the above

3.572 points

QUESTION 19

Under apparent authority:

	a.	a principal is never liable for the acts of an agent.
	b.	a principal is liable for creating the appearance of an agency relationship.
	c.	there is no agency relationship.
	d.	none of the above

3.572 points

QUESTION 20

Religious discrimination is lawful if:

	a.	a church is looking for a pastor.
	b.	the person's religion prevented them from working a certain shift.
	c.	the religious beliefs will interfere with effective work.
	d.	none of the above

3.572 points

QUESTION 21

The business judgment rule holds directors liable for:

	a.	errors in business judgment.
	b.	their mistakes.
	c.	failure to obtain necessary information for making decisions.
	d.	none of the above

3.572 points

QUESTION 22

OSHAâs enforcement powers include:

	a.	Research
	b.	Investigations
	c.	Record-keeping requirements
	d.	All of these answers

3.572 points

QUESTION 23

Which is not an example of an independent contractor relationship?

	a.	master/servant
	b.	lawyer/client
	c.	accountant/client
	d.	All of the above are not independent contractors.

3.572 points

QUESTION 24

The Americans with Disabilities Act:

	a.	applies to all employers.
	b.	limits the impact of the Rehabilitation Act.
	c.	applies only to government contractors.
	d.	prohibits the use of tests that screen out handicapped workers.

3.572 points

QUESTION 25

Under workersâ compensation:

	a.	the employee loses the right to sue the employer for covered incidents.
	b.	employee fault controls compensation.
	c.	injuries by other employees are not covered.
	d.	None of these

3.572 points

QUESTION 26

Which of the following is not one of the benefits provided by workersâ compensation:

	a.	Hospital and medical expenses
	b.	Full wages
	c.	Partial wages
	d.	Death benefits

3.572 points

QUESTION 27

A partnership by estoppel:

	a.	is the same as a partnership by implication.
	b.	results when third parties are led to believe a partnership exists.
	c.	is the same as a joint venture.
	d.	none of the above

3.572 points

QUESTION 28

A shareholder proxy is:

	a.	good until revoked.
	b.	not subject to any securities laws.
	c.	a transfer of a right to vote.
	d.	none of the above

periwinkleswan646

PART B â Questions 10 â 27 Use the following assumptions to answer all questions: â¢ There are three countries â Argentina, Britain and Canada. â¢ Each country produces and consumes two kinds of goods â crude oil and beef. â¢ All countries make their goods from a single type of input â labor â and each country has 700 hours of labor available to produce crude oil and beef. â¢ Each country demands 5 (five) barrels of crude oil. This assumption simply means that a country must have exactly 5 barrels of crude oil â it may produce them domestically, it may import them from abroad, or it makes some domestically and imports the rest. â¢ Countries produce goods using the technology described in the table below Technology Hours of labor needed to produce one unit of good Using the above assumptions, answer the following questions: â¢ Calculate the quantities of crude oil and beef produced in each country in autarky (when they do not trade and each country produces its own crude oil and beef) â¢ Order the countries according to their absolute advantage in production of crude oil â¢ Order the countries according to their absolute advantage in production of beef â¢ Consider the case where countries are free to specialize and trade. In the table below calculate each countryâs opportunity cost of producing one unit of each good. â¢ Calculate the quantities of crude oil and beef produced in each country, consistent with the countryâs comparative advantage. Based on the above calculations, answer questions 10 through 27: Consider autarky, when countries do not trade and each country produces its own crude oil and beef. 10. In autarky, Argentina produces _____ barrels of oil. a. 0 b. 5 c. 10 d. 15 11. In autarky, Britain produces _____ barrels of oil. a. 0 b. 5 c. 10 d. 15 12. In autarky, Canada produces _____ barrels of oil. a. 0 b. 5 c. 10 d. 15 13. In autarky, Argentina produces _____ pounds of beef. a. 0 b. 70 c. 150 d. 400 14. In autarky, Britain produces _____ pounds of beef. a. 0 b. 70 c. 150 d. 400 15. In autarky, Canada produces _____ pounds of beef. a. 0 b. 70 c. 150 d. 400 16. Country of _____ has absolute advantage in production of crude oil. a. Argentina b. Britain c. Canada d. No country 17. Country of _____ has absolute advantage in production of beef. a. Argentina b. Britain c. Canada d. No country Consider effects of specialization, when countries are allowed to trade. 18. When countries specialize, Argentina produces _____ barrels of oil. a. 0 b. 5 c. 10 d. 15 19. When countries specialize, Britain produces _____ barrels of oil. a. 0 b. 5 c. 10 d. 15 20. When countries specialize, Canada produces _____ barrels of oil. a. 0 b. 5 c. 10 d. 15 21. When countries specialize, Argentina produces _____ pounds of beef. a. 0 b. 700 c. 150 d. 400 22. When countries specialize, Britain produces _____ pounds of beef. a. 0 b. 700 c. 150 d. 400 23. When countries specialize, Canada produces ____ pounds of beef. a. 0 b. 700 c. 150 d. 400 24. Country of __C___ has comparative advantage in production of crude oil. a. Argentina b. Britain c. Canada d. No country 25. Country of ___A__ has comparative advantage in production of beef. a. Argentina b. Britain c. Canada d. No country 26. Countries gain from trade because specialization increases ____. a. Trade deficit b. Unemployment c. Efficiency d. Inflation 27. Countries should trade with trading partners that _____. a. Are equally technologically advanced b. Use superior technology in every industry c. Use less advanced technology in every industry d. Use different technologies, because trade benefits all

champagnebee680

	A	B	C	D	E
1
2
3	Date	Price of gas
4	Jan 07, 2008	325.3
5	Jan 14, 2008	323.9
6	Jan 21, 2008	320.1
7	Jan 28, 2008	316.3
8	Feb 04, 2008	313.5
9	Feb 11, 2008	310.7
10	Feb 18, 2008	315.4
11	Feb 25, 2008	324.6
12	Mar 03, 2008	325.2
13	Mar 10, 2008	326.3
14	Mar 17, 2008	333.7
15	Mar 24, 2008	332.1
16	Mar 31, 2008	334.8
17	Apr 07, 2008	336.6
18	Apr 14, 2008	341.6
19	Apr 21, 2008	355
20	Apr 28, 2008	366.9
21	May 05, 2008	367.7
22	May 12, 2008	376.4
23	May 19, 2008	384.9
24	May 26, 2008	397.5
25	Jun 02, 2008	402.6
26	Jun 09, 2008	407
27	Jun 16, 2008	411.8
28	Jun 23, 2008	411
29	Jun 30, 2008	411.3
30	Jul 07, 2008	412.3
31	Jul 14, 2008	411.7
32	Jul 21, 2008	408.4
33	Jul 28, 2008	400.2
34	Aug 04, 2008	393.9
35	Aug 11, 2008	386.6
36	Aug 18, 2008	376.4
37	Aug 25, 2008	371.5
38	Sep 01, 2008	369.8
39	Sep 08, 2008	367.1
40	Sep 15, 2008	373
41	Sep 22, 2008	368
42	Sep 29, 2008	362.7
43	Oct 06, 2008	351.7
44	Oct 13, 2008	323.9
45	Oct 20, 2008	305
46	Oct 27, 2008	286.1
47	Nov 03, 2008	265.4
48	Nov 10, 2008	247.7
49	Nov 17, 2008	229.4
50	Nov 24, 2008	212.8
51	Dec 01, 2008	203
52	Dec 08, 2008	191.8
53	Dec 15, 2008	181
54	Dec 22, 2008	178.1
55	Dec 29, 2008	174.1

QUESTION 13

Label the next column (D) "6-month change." Here we will calculate how much prices have changed since the price six months ago. For example, if the price on January 1 were 224.1 and the price on July 1 is 324.1, the price change is 100. We can't calculate how much prices have changed over the past six months for the first half of 2008 because we don't know the price six months before. So, in column D, put an x in each cell for which we can't calculate the 6-month change. Starting in July, we can calculate the 6-month change. Using cell references, enter here the formula you should enter into cell D30 to calculate the 6-month change.

2 points

QUESTION 14

Copy and paste the formula from cell D30 (from the last question) into cells D31 to D55. What formula is now in cell D48?

2 points

QUESTION 15

What value is now in cell D50?

1 point

QUESTION 16

Label the next column (E) "% of Jan." In this column, we will divide every week's price by the price from January 7th. This will tell us as a percent how prices compare to their level at the start of the year. This time, we want an "absolute" reference so that it doesn't consider the position (i.e. "8 to the left and 2 down") but just locks in on B4 every time. To set up an absolute reference in a formula, we put the $ character into the reference, so instead of B4, we use $B$4. With the dollar signs in place, you can copy the formula and paste it, and in each case, it will go back to B4 regardless of where you are when you paste it. What formula should you type into cell E5 to get the "% of Jan" for January 14, 2008? Remember to use the absolute reference so it will be easy to copy later!

2 points

QUESTION 17

Copy and paste the formula from cell E5 into the rest of column E. (Well, at least from E6 down to E55.) What formula is now in cell E17?

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ECO 1102 Study Guide - Midterm Guide: Loanable Funds, Production Function, Gdp Deflator

ECO 1102 Full Course Notes

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