2020/11/7 Final Exam : S2020--Econ13 Final Exam Due Jun 9 at 2:59pm Points 100 Questions 7 Available Jun 8 at 10pm - Jun 9 at 2:59pm about 17 hours Time Limit 150 Minutes This quiz is no longer available as the course has been concluded. Attempt History Attempt Time Score LATEST Attempt 1 126 minutes 94 out of 100 î… Correct answers are hidden. Score for this quiz: 94 out of 100 Submitted Jun 9 at 9:07am This attempt took 126 minutes. 12 / 15 ptsQuestion 1 Your Answer: Explain how economic growth can happen? What are some of the needed resources? what makes technology very important?

Should policymakers push for more consumption as a way to stimulate economic growth? Please answer each question above on a separate line/paragraph. (1)Economic growth can happen if the real Gross Domestic Product (GDP) increases or the real GDP per capita increases. In order to have real GDP or real GDP per capita growth, we need more resources like labor, land, etc, higher technology, and more efficiently-allocated resources. (2) Some needed resources are more labor, more land, higher technology and the ability to better allocate existing resources Final Exam : S2020--Econ13 Higher technology, which gives workers better understanding of the best way to produce goods and services, will make workers have more productivity. (4) Policymakers can push for more consumption as a way to stimulate economic growth.

However, they should not push too much for more consumption as a way to stimulate economic growth, instead, they should encourage the increase of productivity. Physical capital per worker, human capital per worker, natural resources per worker, and technological knowledge are the four determinants of productivity. Policymakers should put effort into these four factors but not push too much for more consumption. decrease consumption, invest in capital 12 / 15 ptsQuestion 2 1. Using the table below, calculate GDP growth rate and GDP per capita growth rate from 2018 to 2019. Interpret your answers. (Show all work and round all answers to the nearest 2 decimal points) Real GDP ($ billions) Real GDP per capita (dollars) ,500 ,/11/7 Final Exam : S2020--Econ13 Your Answer: GDP growth rate=(real GDP in 2019-real GDP in 2018)/real GDP in 2018*100=()/110*100=-3.64% GDP per capita growth rate=(real GDP per capita in 2019-real GDP per capita in 2018)/real GDP per capita in 2018*100= (,000-,500)/,500*100=5.26% Interpretation?

10 / 10 ptsQuestion 3 Your Answer: From 1979, China’s economy (real GDP) grew at an average rate of 10%. Using the rule of 72, state how many years it took the Chinese economy to double. Time to double=72/10=7.2 It took the Chinese economy 7.2 years to double. 20 / 20 ptsQuestion 4 1. Using the data presented in the table below answer the followings: 2. which country has comparative advantage in the production of apples, oranges?

Explain and show work. (10 points) 3. which country has an absolute advantage in the production of apples, oranges? Explain. (5 points) 2020/11/7 Final Exam : S2020--Econ13 Your Answer: 4. Which country should specialize in the production of apples, oranges? Explain why. (5 points) Please answer each question above on a separate line/paragraph. Production per worker: Apples Oranges U.S.

Mexico ) The opportunity cost for the U.S. to produce 1 apple is 200/100=2 oranges. The opportunity cost for the U.S. to produce 1 orange is 100/200=0.5 apple. The opportunity cost for Mexico to produce 1 apple is 150/450= 1/3 orange. The opportunity cost for Mexico to produce 1 orange is 450/150=3 apples. Since the opportunity cost for Mexico to produce 1 apple is less than the opportunity cost for the US to produce 1 apple (1/3<2), Mexico has comparative advantage in the production of apples.

Since the opportunity cost for the US to produce 1 orange is less than the opportunity cost for Mexico to produce 1 orange (0.5<3), the US has comparative advantage in the production of oranges. (2) Mexico has an absolute advantage in the production of apples because a worker in Mexico can produce more apples in the same amount of time than a worker in the US (450>100). The US has an absolute advantage in the production of oranges because a worker in the US can produce more oranges in the same amount of time 2020/11/7 Final Exam : S2020--Econ13 than a worker in Mexico (200>150). (3) The US should specialize in the production of oranges, and Mexico should specialize in the production of apples because the US has comparative advantage in the production of oranges, and Mexico has comparative advantage in the production of apples.

After trading with each other, both countries can be better off. 20 / 20 ptsQuestion 5 Your Answer: 1. The model (graph) below represents a small country trade of good X after the government decided to impose tariffs on import. Consider the case of trade after tariffs. Please answer the following questions: What area(s) represent the loss of surplus to producers? (5 points) What area(s) represent government revenue? (5 points) Describe the impact of a tariff on social welfare.

Refer to the graph to support your answer. (10 points) Please answer each question above on a separate line/paragraph. (1) No area can represent the loss of surplus to producers 2020/11/7 Final Exam : S2020--Econ13 E represents government revenue. (3) Consumer surplus falls. Before tariffs, it was A+B+C+D+E+F. After imposing tariffs, it becomes A+B, which falls. Producer surplus rises. Before tariffs, it was G.

After imposing tariffs, it becomes C+G, which raises. The government gets tax revenue, which equals the area E. The whole society is worse off since there are dead weight lost, which equals the area D+F. 10 / 10 ptsQuestion 6 Your Answer: If the U.S. dollar (USD) and Canadian dollar (CAD) exchange rate is .10 USD for

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2020/11/7 Final Exam : S2020--Econ13 Final Exam Due Jun 9 at 2:59pm Points 100 Questions 7 Available Jun 8 at 10pm - Jun 9 at 2:59pm about 17 hours Time Limit 150 Minutes This quiz is no longer available as the course has been concluded. Attempt History Attempt Time Score LATEST Attempt 1 126 minutes 94 out of 100 î… Correct answers are hidden. Score for this quiz: 94 out of 100 Submitted Jun 9 at 9:07am This attempt took 126 minutes. 12 / 15 ptsQuestion 1 Your Answer: Explain how economic growth can happen? What are some of the needed resources? what makes technology very important?

Should policymakers push for more consumption as a way to stimulate economic growth? Please answer each question above on a separate line/paragraph. (1)Economic growth can happen if the real Gross Domestic Product (GDP) increases or the real GDP per capita increases. In order to have real GDP or real GDP per capita growth, we need more resources like labor, land, etc, higher technology, and more efficiently-allocated resources. (2) Some needed resources are more labor, more land, higher technology and the ability to better allocate existing resources Final Exam : S2020--Econ13 Higher technology, which gives workers better understanding of the best way to produce goods and services, will make workers have more productivity. (4) Policymakers can push for more consumption as a way to stimulate economic growth.

However, they should not push too much for more consumption as a way to stimulate economic growth, instead, they should encourage the increase of productivity. Physical capital per worker, human capital per worker, natural resources per worker, and technological knowledge are the four determinants of productivity. Policymakers should put effort into these four factors but not push too much for more consumption. decrease consumption, invest in capital 12 / 15 ptsQuestion 2 1. Using the table below, calculate GDP growth rate and GDP per capita growth rate from 2018 to 2019. Interpret your answers. (Show all work and round all answers to the nearest 2 decimal points) Real GDP ($ billions) Real GDP per capita (dollars) $9,500 $10,/11/7 Final Exam : S2020--Econ13 Your Answer: GDP growth rate=(real GDP in 2019-real GDP in 2018)/real GDP in 2018*100=()/110*100=-3.64% GDP per capita growth rate=(real GDP per capita in 2019-real GDP per capita in 2018)/real GDP per capita in 2018*100= ($10,000-$9,500)/$9,500*100=5.26% Interpretation?

10 / 10 ptsQuestion 3 Your Answer: From 1979, China’s economy (real GDP) grew at an average rate of 10%. Using the rule of 72, state how many years it took the Chinese economy to double. Time to double=72/10=7.2 It took the Chinese economy 7.2 years to double. 20 / 20 ptsQuestion 4 1. Using the data presented in the table below answer the followings: 2. which country has comparative advantage in the production of apples, oranges?

Explain and show work. (10 points) 3. which country has an absolute advantage in the production of apples, oranges? Explain. (5 points) 2020/11/7 Final Exam : S2020--Econ13 Your Answer: 4. Which country should specialize in the production of apples, oranges? Explain why. (5 points) Please answer each question above on a separate line/paragraph. Production per worker: Apples Oranges U.S.

Mexico ) The opportunity cost for the U.S. to produce 1 apple is 200/100=2 oranges. The opportunity cost for the U.S. to produce 1 orange is 100/200=0.5 apple. The opportunity cost for Mexico to produce 1 apple is 150/450= 1/3 orange. The opportunity cost for Mexico to produce 1 orange is 450/150=3 apples. Since the opportunity cost for Mexico to produce 1 apple is less than the opportunity cost for the US to produce 1 apple (1/3<2), Mexico has comparative advantage in the production of apples.

Since the opportunity cost for the US to produce 1 orange is less than the opportunity cost for Mexico to produce 1 orange (0.5<3), the US has comparative advantage in the production of oranges. (2) Mexico has an absolute advantage in the production of apples because a worker in Mexico can produce more apples in the same amount of time than a worker in the US (450>100). The US has an absolute advantage in the production of oranges because a worker in the US can produce more oranges in the same amount of time 2020/11/7 Final Exam : S2020--Econ13 than a worker in Mexico (200>150). (3) The US should specialize in the production of oranges, and Mexico should specialize in the production of apples because the US has comparative advantage in the production of oranges, and Mexico has comparative advantage in the production of apples.

After trading with each other, both countries can be better off. 20 / 20 ptsQuestion 5 Your Answer: 1. The model (graph) below represents a small country trade of good X after the government decided to impose tariffs on import. Consider the case of trade after tariffs. Please answer the following questions: What area(s) represent the loss of surplus to producers? (5 points) What area(s) represent government revenue? (5 points) Describe the impact of a tariff on social welfare.

Refer to the graph to support your answer. (10 points) Please answer each question above on a separate line/paragraph. (1) No area can represent the loss of surplus to producers 2020/11/7 Final Exam : S2020--Econ13 E represents government revenue. (3) Consumer surplus falls. Before tariffs, it was A+B+C+D+E+F. After imposing tariffs, it becomes A+B, which falls. Producer surplus rises. Before tariffs, it was G.

After imposing tariffs, it becomes C+G, which raises. The government gets tax revenue, which equals the area E. The whole society is worse off since there are dead weight lost, which equals the area D+F. 10 / 10 ptsQuestion 6 Your Answer: If the U.S. dollar (USD) and Canadian dollar (CAD) exchange rate is $1.10 USD for $0.90 CAD, how much would a $29,000USD car cost in Canadian dollars? (round your answers to the nearest 2 decimal points) $29000 USD*($0.90 CAD/$1.10 USD)=$23,727.27 CAD 10 / 10 ptsQuestion 7 Your Answer: Explain the main differences between a flexible exchange rate system and a fixed exchange rate system. A flexible exchange rate system is an exchange rate system determined by supply and demand in the free market or the foreign exchange market.

2020/11/7 Final Exam : S2020--Econ13 The government will not step in the flexible exchange rate system and the flexible exchange rate system always exists in developed countries. A fixed exchange rate system is the exchange rate set by the government and rarely be affected by the supply and demand in the free market. The flexed exchange rate system always exists in developing countries Quiz Score: 94 out of 100