The table below shows the production of tons of Sugar and Bananas by Barbados and Jamaica using the same quantities of resources.
economics
Description
Instructions
1. Answer all
questions in both Sections of this paper
2. The
answers to each question in Section B must be type-written below each question
or part thereof.
SECTION
B (30 MARKS)
INSTRUCTION:
Do all questions in this Section
51) (Total = 8 marks)
(A) Fill in the empty cells in the below: (4 marks)
|
|
January |
February |
|
Labor
Force |
140,000 |
142,000 |
|
Employed |
130,000 |
131,000 |
|
Unemployed |
|
|
|
Unemployment
Rate % |
|
|
(B) Given the Consumption Function, suppose a
= 50, c = 0.8, and T = 410. How much is saved out of a total gross
income of 1230? (4
marks)
52) (Total = 8
marks)
Refer to the information provided in
Table 9.3 below to answer the questions that follow.
Table 9.3
All Numbers are in $ Million
(A) Assuming
constant MPC, at income of $1,100 million, what is consumption?
(2 marks)
(B) Assuming
constant MPC, at income of $1,400 million, what is consumption?
(2 marks)
(C) Assuming
constant MPC, at income of $1,300 million, what is savings?
(2 marks)
(D) Assuming
constant MPC, at income of $1,500 million, what is savings?
(2 marks)
53) (Total = 8 marks)
The table below shows
the production of tons of Sugar and Bananas by Barbados and Jamaica using the
same quantities of resources.
|
Tons of Sugar |
Tons of Bananas |
|
|
Barbados |
220 |
80 |
|
Jamaica |
130 |
150 |
|
Tons of Sugar |
Tons of Bananas |
|
|
Barbados |
|
|
|
Jamaica |
|
|
(A) Who
has the Absolute Advantage in the production of Sugar, and why?
(2 marks)
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
(B) Who
has the Absolute Advantage in the production of Bananas, and why?
(2 marks)
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
(C) Who has the
Comparative Advantage in the production of Sugar, and why?
2 marks)
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
(D) Who
has the Comparative Advantage in the production of Bananas, and why?
(2 marks)
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
54. (Total =14 marks)
Assume the following equations for a macroeconomy
C =
150 + .8Yd , I = 40, T = 0.2Y , X=120, Im=0.2Y
and G = 350.
(
Correct your answers to 2 decimal places)
(A)
Calculate the equilibrium level of output (5 marks)
(B) Calculate Net
exports, and total consumption. (3marks)
(C) Calculate total consumption (3
marks)
(D) State whether the economy has a budget
surplus/deficit. Find its value.
(3 marks)
55. (Total = 6 marks)
The table below represents the demand and supply schedules for cement
in Canada and
United States. (Assume
these are only 2 countries trading in cement).
(A)
If there is no trade between these
two countries, what are the equilibrium price and the equilibrium quantity in
Canada? (2
marks)
(B)
If there is no trade between these
countries, what are the equilibrium price and the
equilibrium
quantity in the United States? (2
marks)
(C)
If Canada and the United States
trade with each other, what will be the equilibrium price in the world for
cement? (2
marks)
56) (Total
= 6 marks)
A
nation’s foreign transactions are as follows:
Refer
to the above table to answer the following:
(A)
What is this nation’s balance of
trade? (2 marks)
(B)
Calculate the current account
balance. (2 marks)
(C) Calculate
the capital account balance. (2
marks)
END
OF EXAMINATION
