Reference no: EM131145046

Macroeconomics-

1.) Complete the following figure.

2.) Explain shortly the conflict between efficiency and equality from a macroeconomic perspective and give one example.

3.) Write down two advantages of Division of Labor.

4.) Suppose a production possibilities frontier (PPF) includes the following combinations:

a) Graph the PPF, assuming that it has no curved segments.

b) What is the cost of producing an additional computer, when 50 cars are being produced?

c) What is the cost of producing an additional car, when 50 cars are being produced?

5.) Name three different types of firms!

6.) The soviet union has been governed by a so called "command system". In many industries the government set maximum wages to guarantee equality among the workers. Below you see a demand-supply-curve for the workforce and the wages for enigneers in the city Nowosibirsk.

a) Who is demander and who is supplier? Fill out the gaps in the brackets!

b) Is there a shortage or surplus in demand? How big is it?

c) Except for changing the maximum wage, what can the government do, to reach the equilibrium? Show the change and its effect in the figure above and explain it in your own words.

d) Give two differences between a pure capitalist system and a command system!

7.) Explain in your own words the main difference between the ideas of Adam Smith and John Maynard Keynes concerning the fluctuation of an economy.

8.) Give three examples about how to stimulate aggregate demand!

9.) Which of the following items are included in the GDP? ("Included" or "not included")

1. Frankie buys newly issued shares of "Sid Meier's Civilization"-company. __________________
2. Berry buys a new pair of shoes at Zara. ___________________
3. Shili buys an antique statue at a resale shop. ___________________
4. Mario invites the macroeconomics class to his room and cooks pasta. __________________
5. Social security payments from the government. ____________________
6. 2 billion $ increase in business inventories. ______________________
7. The government of China builds a new University. ___________________
8. Shihui buys an insurance policy for coming late to class. ________________

10.) In Sealand, a small Island in the Atlantic Ocean, the citizens only produce fish, boats and wine. For two years production and prices have been as follows:

a) Calculate the nominal GDP for 2010 and 2014!

b) Using 2010 as the base year, calculate the real GDP for 2014!

c) By what percentage has the nominal and the real GDP grown from 2010 to 2014?

11.) Using the following national income accounting data:

a) Compute the GDP using the expenditure approach!

b) Determine Net Gross Domestic Product (NDP)!

c) Determine the Disposable Income (DI)!

12.) Name for groups of people who are not part of the labor force!

13.) Name for different types of unemployment and give one example for each type!

14.) Explain the spiral effect of inflation in your own words!

15.) Explain the challenge for the human beings of dealing with scarce resources. What is the problem of infinite growth on a planet with scarce resources? In connection to that, what is your opinion about the economic system of John Maynard Keynes?