1. In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists of 10 hot dogs and 6 hamburgers. A hot dog cost $3 in 2006 and $5.40 in 2007. A hamburger cost $5 in 2006 and $6 in 2007.

Which of the following statements is correct?

a. When 2006 is chosen as the base year, the consumer price index is 90 in 2007.

b. When 2006 is chosen as the base year, the inflation rate is 50 percent in 2007.

c. When 2007 is chosen as the base year, the consumer price index is 100 in 2006.

d. When 2006 is chosen as the base year, the inflation rate is 50 percent in 2007.

2. The CPI was 120 in 2000 and 132 in 2001. Dorgan borrowed money in 2000 and repaid the loan in 2001. If the nominal interest rate on the loan was 12 percent, then the real interest rate was

a. 2 percent.

b. 10 percent.

c. 12 percent.

d. 22 percent

3. By not taking into account the possibility of consumer substitution, the CPI

a. understates the cost of living.

b. overstates the cost of living.

c. may overstate or understate the cost of living, depending on how much prices rise.

d. may overstate or understate the cost of living, regardless of the extent to which prices rise

4. You know that a candy bar cost five cents in 1962. You also know the CPI for 1962 and the CPI for today. Which of the following would you use to compute the price of the candy bar in today’s prices?

a. five cents × (1962 CPI/ today’s CPI)

b. five cents × (1962 CPI/(today’s CPI – 1962 CPI))

c. five cents × (today’s CPI/1962 CPI)

d. five cents × today’s CPI – five cents × 1962 CPI.

5. The nominal interest rate tells you

a. how fast the number of dollars in your bank account rises over time.

b. how fast the purchasing power of your bank account rises over time.

c. the number of dollars in your bank account today.

d. the purchasing power in your bank account today.

Equality and Diversity Unit 1 Assignment Essay

6. Consider two countries. Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000 of whom 1,800 work 6 hours a day to make 270,000 final goods

a. Country A has higher productivity and higher real GDP per person than country B.

b. Country A has lower productivity and lower real GDP per person than country B.

c. Country A has higher productivity, but lower real GDP per person than country B.

d. Country B has lower productivity, but higher real GDP per person than country B.

7. The Peapod Restaurant uses all of the following to produce vegetarian meals. Which of them is an example of physical capital?

a. The owner’s knowledge of how to prepare vegetarian entrees.

b. The money in the owner’s account at the bank she borrowed money from.

c. The tables and chairs in the restaurant.

d. The land the restaurant was built on.

8. In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker

a. decreased by 1. 7 percent between 1998 and 2008.

b. remained unchanged between 1998 and 2008.

c. increased by 4. 75 percent between 1998 and 2008.

d. increased by 6. 25 percent between 1998 and 2008

Quick assignments help

Quick Assignments Help
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Why Choose Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission and Business Papers

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Editing

Editing and Proofreading

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Coursework

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.