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6 economic questions that need help answering.

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Question 1.

Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55 million. Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4 million. Calculate the per capita GDP for each country and identify which one is higher.

Instructions: Enter values to two decimal places unless it is a whole number.

Ethiopia = $_______?________ per capita.

Costa Rica = $_______?_________

The per capita GDP of __________-?________ is much lower than that of _________ by $________.

Question 2

The Czech Republic has a GDP of 1,800 billion koruny. The exchange rate is 20 koruny/U.S. dollar. The Czech population is 20 million.

What is the GDP per capita of the Czech Republic expressed in U.S. dollars?

Instructions: Enter values as whole numbers (no decimal places).

Per capita GDP = __________?______koruny.

Per capita GDP in U.S. dollars = $__________?____________

Question 3

An economy starts off with a per capita GDP of $5000. How large will the per capita GDP be if it grows at an annual rate of:

Instructions: Enter values to two decimal places.

a. 2% for 20 years?

Per capita GDP = $______?_________

b. 2% for 40 years?

GDP per capita = $_________?__________

c. 4% for 40 years?

GDP per capita=_______?________

d. 6% for 40 years?

GDP per capita = $_________?__________

Question 4

Say that the average worker in Canada has a productivity level of $30 per hour while the average worker in the United Kingdom has a productivity level of $25 per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at 1% per year while worker productivity in the UK grows 3% per year. At that point, who will have the higher productivity level, and by how much?

Instructions: Enter all numerical values to two decimal places.

Canadian Worker Productivity = $_______?________per hour

UK Worker Productivity = $__________?_________per hour

State which country is greater and by how much.

The (UK, Canadian)________?_______ worker productivity is _________times greater than (UK, Canadian)______________worker productivity at the end of 5 years.

Question 5

Assume the following data for a country:

Category

Number of People (Millions)

Total population

500

Population under 16 years of age or institutionalized

120

Not in labor force

120

Unemployed

13

Part-time workers looking for full-time jobs

10

a) What is the size of the labor force?________ million

b) What is the official unemployment rate?__________%

Question 6

Answer the following questions on the basis of the three sets of data for the country of North Vaudeville:

(A)

(B)

(C)

Price Level

Real GDP

Price Level

Real GDP

Price

Level

Real

GDP

110

280

100

205

110

230

100

255

100

230

100

230

95

230

100

255

95

230

90

205

100

280

90

230

a) Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville?

The data in ____________

Which set of data illustrates aggregate supply in the short run in North Vaudeville?

The data in __________

Which set of data illustrates aggregate supply in the long run in North Vaudeville?

The data in ________________

b) Assuming no change in hours of work, if real output per hour of work increases by 20 percent, what will be the new levels of real GDP in the right column of A?

Instructions: Enter values as whole numbers.

Price level 110: New output =__________

Price level 100: New output =___________

Price level 95: New output =_____________

Price level 90: New output =_________________

c) Do the new values reflect an increase in aggregate supply or do they indicate a decrease in aggregate supply? __________________

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