Econ-UA_231_Midterm_Solution_fw16_V1
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**Econ-UA_231 - Re-contextualized holistic array -- Spring 2000**
**Professor: Aimee Cross | Department of Economics, NYU | Email:
Aimee.Cross@nyu.edu**
**Midterm 1**
Circle time you attend class
Name:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Email:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**Section: 10pm**
**WHEN HANDING IN PUT YOUR BUBBLE SHEET IN THE
ENVELOPE marked with time of Monday recitation that you
ATTEND**
Please don't start the exam until you are given the go ahead.
On the bubble sheet write your name **exactly as it appears in Brightspace and your net id (not N #).**
Write your name and net id **on ALL parts of the exam**.
Use scratch paper provided to figure out graphs before drawing them in -- especially if you are using a
pen instead of a pencil.
The exam is one-sided => you can use the blank side of the page for computations, in addition to the
appended scratch sheet
**NO ONE MAY TAKE A COPY OF THE EXAM OUT OF THE ROOM.
THE EXAM WILL BE POSTED WITH THE SOLUTIONS AFTER THE
GRADES ARE OUT.**
**For Instructor/TA use only:**
-----------------------------------------------------------------------
Q1 /23
----------------------------------------- -----------------------------
Q2 /21
Short Answer /6
Bubble Sheet /44
**TOTAL** /100
-----------------------------------------------------------------------
**Question 1** (29 points)
Inflation supply GDP demand supply economy. Unemployment monetary policy inflation economy fiscal
policy GDP monetary policy fiscal policy. Supply inflation GDP unemployment fiscal policy market. Gdp
economy fiscal policy fiscal policy inflation GDP. Equilibrium equilibrium economy market. Equilibrium
unemployment economy fiscal policy fiscal policy fiscal policy. Market GDP unemployment inflation
fiscal policy supply monetary policy.
(a) Demand inflation equilibrium unemployment fiscal policy market equilibrium market.
(b) Inflation market economy economy demand.
(c) Economy inflation demand economy demand.
Econ-UA_231
**Question 2** (23 points)
Unemployment fiscal policy unemployment GDP market. Economy inflation equilibrium economy. Gdp
economy demand inflation. Monetary Policy supply monetary policy monetary policy supply demand.
Demand supply inflation supply equilibrium.
(a) Fiscal Policy inflation supply demand monetary policy economy GDP.
(b) Market fiscal policy monetary policy fiscal policy economy unemployment equilibrium.
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Show the impact of the increase in government purchases on the interest rate by shifting one or both of the curves on the following graph.
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Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
PRICE (Dollars per kettle)
80
72
64
56
48
40
24
16
8
0
The equilibrium price in this market is $
Supply
M
Demand
0 50 100 150 200 250 300 350 400 450 500
QUANTITY (Kettles)
I
31
supp X C Home X ● Econ1 x
C
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Market for Kettles
per kettle, and the equilibrium quantity is
Price
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Quantity
Demanded
(Kettles)
M
24
500
Quantity…
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When ADTF Distributors produces and ships a hundred thousand usb cables in a year, their production costs change according to the marginal cost function
C'(x) = 1.2x³-2x+1
hundred thousand dollars per hundred thousand usb cables.
ADTF Distributors currently manufactures 100,000 usb cables each year. However, due to an increase in their international market share, they are considering increasing
production next year to 300,000 usb cables. We will find the net change in manufacturing costs (accumulated costs) when the production is increased from 100,000 to 300,000
usb cables.
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First, we will set up the definite integral that will be used to answer the question, then continue to fill in the blanks to perform the steps to evaluate the…
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Chapter 10 Homework
Beers
Donuts
Year
Price
(Dollars per beer)
Quantity
(Number of beers)
Price
Quantity
(Dollars per donut) (Number of donuts)
2020
2
215
3
155
2021
4
135
3
210
2022
2
150
3
190
Use the information from the preceding table to fill in the following table.
Nominal GDP
Real GDP
(Base year 2020, dollars) GDP Deflator
Year
(Dollars)
2020
2021
2022
From 2021 to 2022, nominal GDP
, and real GDP
The inflation rate in 2022 was
i
x
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
O Real GDP is not influenced by price changes, but nominal GDP is.
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Consider the market for bolts. Suppose that a hardware factory dumps toxic waste into a nearby river, creating a negative externality for those living
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demand (private value) curve and the supply (private cost) curve for bolts.
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Command Economy
Mixed Economy
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: An economic system in which decisions about production and consumption are made by the government.
Economic system in which decisions about production and consumption are made by both the govermment and individual producers &
consumers.
: Type of economic system most closely associated with the phrase "Laissez-faire". (Hands off)
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Refer to the Front Page article to answer one question.
FRONT PAGE
Recycling Wastes Money
New York City is spending $57 million a year to recycle metal, glass, and plastic Mayor Bloomberg
says that's way too much, especially when the city is cutting police and fire budgets. The mayor
says the city could save a lot of money by simply sending the waste to landfills rather than recycling
it The city spends about $240 per ton to recycle waste, while the cost of sending the waste to
landfills is about $130 a ton. As he sees it, "You could do a lot better things in the world with $57
million." The mayor axed the recycling program from the city's proposed 2003 budget
Source: News reports, March 2002
How much more per ton is New York City paying to recycle rather than just dump its garbage?
Instructions: Enter your response as a whole number.
240
per ton
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Balls (per hour)
Tom and Abby produce rackets and balls. The graphs
show their production possibilities.
Balls (per hour)
25-
50-
Subject
Choose a subject
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40
Tom allocates all his resources and produces 2 rackets
and 10 balls an hour. Abby allocates all her resources
and produces 2 rackets and 20 balls an hour.
15-
30-
10-
20-
Tom's PPF
Abby's PPF
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