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?