Econ-545 Week 6 Quiz Essay example

1824 WordsApr 9, 20138 Pages
| 1. | Question: | (TCO F) The size of the labor force in a community is 1,000, and 850 of these folks are gainfully employed. In this community, 50 people over the age of 16 do not have a job and are not looking for work. In addition, 80 people in the community are under the age of 16. The unemployment rate is ______. | | | Student Answer: | | Unemployment rate=unemployed/labor force*100 150/1000*100=15% 1000-850=150 (number of people unemployed) then divided by total labor force divided by 100 | | Instructor Explanation: | The unemployment rate is calculated by dividing the number of unemployed by the labor force. The labor force is calculated by subtracting three things from the population (# under 16, # of…show more content…
buyers. A country such as China might choose to peg their currency to the U.S. dollar to keep prices stable for a key trading partner like the U.S. If the U.S. dollar would appreciate considerably against most currencies, this would not affect China trade with the U.S., but Chinese goods would become more expensive to their other trading partners, and could cause Chinese exports to these other markets to decrease. | | | | Points Received: | 17 of 20 | | Comments: | | | | | | | 5. | Question: | (TCO E) Suppose the Indian rupee price of one British pound is 54.392 rupees for each pound. A hotel room in London costs 120 pounds, while a similar hotel room in New Delhi costs 6,500 Indian rupees. In which city is the hotel room cheaper, and by how much? | | | Student Answer: | | London hotel room 120 pound or 6527 rupee (120*54.392) India hotel room 119.50 pounds (6500/54.392) or 6500 rupee the hotel room is cheaper in India for .50 cent in pound or 27 rupees | | Instructor Explanation: | Since the exchange rate is 1 pound = 54.392 Indian rupees, we can convert the price of the hotel room in London to Indian rupees and then be able to compare. 120 pounds = rupees(120 x 54.392) = 6,527 rupees. Since the hotel room in New Delhi costs 6,500 rupees, it must be that the hotel room costs 27 rupees more in London than in New Delhi. | | | | Points Received: | 15 of 15 | | Comments: | | | |

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