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?