If you walk on your tip toes, what position is your ankle in?

Each part of this question will be worth 3 points. State whether the following questions are “true” or “false.” You must explain your reasoning to receive full credit. Please record your answer by typing the letter that corresponds to the part you are answering. For example, if you are answering part A, type “A) your answer.”  A firm should shut down anytime it earns negative economic profit. Out-of-pocket costs are included in accounting profit calculations, but not economic profit calculations. Over the long-run, price equals marginal cost in both monopolistic competition and perfect competition. When a monopolistically competitive firm faces more competition, the demand for it’s product falls. A perfectly competitive firm faces a downward-sloping demand curve while a monopolistically competitive firm faces a perfectly elastic, or flat demand curve.  

The table below provides macroeconomic data for the country of Zipra for the years 2023 and 2024. Round all calculations to the nearest hundredth (second decimal place). Economic Statistic 2023 2024 Nominal Gross Domestic Product $18 trillion $18.45 trillion Real Gross Domestic Product (2018 Prices) $19.5 trillion $20.5 trillion Adult Civilian Population 200,000,000 210,000,000 Employed 124,000,000 124,300,000 Unemployed 6,000,000 5,850,000   Calculate Zipra’s nominal GDP growth rate in percentage points. Calculate Zipra’s real GDP growth rate in percentage points. Calculate Zipra’s real GDP per capita for 2023. Calculate the growth in the price level between 2024 and 2018 in percentage points (Hint: use the GDP deflator). Calculate Zipra’s labor force participation rate for 2023 in percentage points. Calculate Zipra’s unemployment rate for 2023 in percentage points.

Each part of this question will be worth 3 points. State whether the following questions are “true” or “false.” You must explain your reasoning to receive full credit. Please record your answer by typing the letter that corresponds to the part you are answering. For example, if you are answering part A, type “A) your answer.”  The investment component of GDP includes physical investment such as factories and financial investment such as stocks and bonds. Ceteris paribus, economies with stricter employment protections can expect higher long-term unemployment rates. Ceteris paribus, if the inflation rate increases from 2% to 6%, lenders will be relatively better off and borrowers will be relatively worse off. Each residential home transaction contributes to GDP, even resales. The BLS defines a unemployed person as anyone who does not have a job.

Match the term on the right that best describes the statement on the left.

State whether the following scenarios will tend to understate, overstate, or appropriately express CPI inflation. Netflix increases its subscription price and adds hundreds of new movies and original programming to its menu. During the pandemic, Chez Fonfon, an upscale dine-in French bistro in Birmingham, AL started selling its meals as take-out but kept its prices unchanged. As eggs become more expensive, consumers switch to cheaper plant-based egg substitutes, which are not yet included in the CPI.

A binding price control of $14 is set in this market. The price control represents a that creates a new quantity demanded equal to , a new quantity supplied equal to , and a equal to . As a result of the price control, a deadweight loss equal to is also created.

A binding price control of $14 is set in this market. The price control represents a that creates a new quantity demanded equal to , a new quantity supplied equal to , and a equal to . As a result of the price control, a deadweight loss equal to is also created.

Match the following statements to the term that best describes it. Terms might be used multiple times or not at all.  

PPF Japan India 1 unit of labor produces 12 units of clothing 9 units of clothing 1 unit of labor produces 12 computers 3 computers Each part is worth 2 points. Use the table given above to answer the following questions. Japan’s opportunity cost of producing 1 computer is Japan’s opportunity cost of producing 1 unit of clothing is India’s opportunity cost of producing 1 computer is India’s opportunity cost of producing 1 unit of clothing is Which country holds the comparative advantage over the other in clothing? Which country holds the comparative advantage over the other in computers? Which country holds the absolute advantage over the other in clothing? Which country holds the absolute advantage over the other in computers? Based on parts a – h, which of the following statements is true?