经济学知识点练习.docVIP

1.Please answer questions according to following demand schedule Price 10 20 30 40 50 Quantity demanded 500 400 300 200 100 a. Please draw the demand curve. b. According to the demand curve, when price falls from point $40 to $30, please compute the price elasticity of demand using midpoint method. Is demand elastic or inelastic? c. What would happen to total revenue if price falls from $40 to $30？ Which kind of relationship is there between the price elasticity of demand and total revenue? 1.Answer: b. 7/5, elastic c. Increase total revenue by $1,000. Because demand is elastic, a decrease in the price causes an increase in the total revenue. 2. The following table shows data for an economy that produces only two goods: rice and meat. Price of rice Quantity of rice Price of meat Quantity of meat 2006 $1 100 $4 80 2007 $2 150 $5 100 2008 $3 160 $6 80 Compute nominal GDP and real GDP for each year, using 2006 as the base year. Do you think recession happens in 2008? Why? 2.Answer a calculate the nominal GDP 2007 2*150+5*100=800 2008 3*160+6*80=960 calculate the real GDP 2007 1*150+4*100=550 2008 1*160+4*80=480 b. Yes, recession happens in 2008. 3According to the table, answer the following questions: Income Quantity of Good X Purchased Quantity of Good y purchased $30,000 2 20 $40,000 5 10 According to the table, please use the midpoint method to calculate the income elasticity of good Y. Is good Y a normal good or an inferior good? Why do you think so? According to the table, is Good X a normal good or an inferior good? Why do you think so? 3.Answer: a. –2.33, an inferior good, because Good Y’s income elasticity is negative, and increase in income has caused an decrease in the quantity demanded for it. b. A normal good, because Good X’s income elasticity is positive, the increase in income has caused an increas