economics
EC222/Fall 2015, Extra Credit _____________________________________________________
1. Candace makes 6 pies in 3 hours; Raymond makes 40 pies in 8 hours; Vanessa makes 80 pies in a 20 hours, Sam makes 10 pies in 4 hours. Calculate their output per hour.
Candace? ____________ Raymond? __________ Vanessa? ____________ Sam? ____________
Who is the most productive? ___________________________
2. When the amount of savings increases, interest rates will ____________ (increase, decrease)
and the amount of loans for business investment will _______________(increase, decrease)
3. Should Haiti (or any country) impose high tariffs on imported goods to protect domestic
industry? ___________
4. ________________Free international trade will _________ prices, and _________ incomes.
a. Increase; increase
b. Decrease; decrease
c. Decrease; increase
d. Increase; decrease
5. _________________Real GDP for Country A is $50 billion. Real GDP for Country B is $50 billion. Country A has 5 million people, while Country B has 25 million people. In which one is the average citizen better off?
Real GDP per capita for A? _______________ Real GDP per capita for B? _______________
_____________________________________________________________________________________________
Inflation Real GDP Nominal GDP Population
Country Rate Growth Rate Growth Rate Growth Rate
A 3% 5% 18% 5%
B 7% 9% 25% 7%
C – 5% 2% 50% 10%
D 2% 11% 15% 12%
6. _____________ Using the table above, which country is improving the most economically for
the average citizen of that country?
