(i) If the economy produces 15 units of manufactured goods, what is the maximum number of non-manufactured goods it can produce? 1 (i) How many manufactured goods could it produce if production of non- manufactured goods was 50 units? 1 (b) At what point will the economy be if it were only producing non manufactured goods. 1 (c) What does point f and g indicate. 2 A 50 40 30 20 10 10 20 30 40 Manufactured goods Non-manufactured goods

(a) Suppose that the 149 million square kilometers of land on the surface of the population of 7 billion people in late 2011 or early 2012. population of 7 billion people in late 2011 or early 2012. 4. According to the United Nations Population Fund (UNFPA), the world reached a (a) Suppose that the 149 million square kilometers of land on the surface of the earth was divided equally among this population, so that each person was allotted a square parcel of land How long would the sides of each square parcel be? (b) According to the United Nations Food and Agriculture Organization (FAO), only about 32% of the surface of the earth is considered arable and suitable for farming. If only the arable land was divided into equal square parcels among the population, how long would the sides of each square parcel be? (c) Express your answers to parts (a) and (b) in terms of some concrete unit of length. For instance, you might compare them to the height of the Empire State Building, the span of…

Refer to the table below for a very simple economy producing three goods: movies, burgers and bikes. Steel bike frames are used for bike production and meat patties are used for making burgers.      2015 2020 Product Quantity Price Quantity Price Steel frames 10 $5000 20 $7500 Movies 30 $10 50 $15 Bikes 10 $10000 20 $15000 Meat patties 200 $1.50 300 $2.00 Burgers 200 $2.00 300 $3.00   What is the nominal GDP in 2020? What was the nominal GDP in 2015? What is the real GDP in 2020 using 2015 prices as base year prices? What is the real GDP growth rate between 2020 and 2015? Explain the three main types of unemployment and outline the policies that can be used to reduce each type of unemployment.

4. Do you think that incomes and purchasing power are related? Are companies required to pay their employees more to compensate for higher costs of living?

15. Enchante Inc., a designer clothing company buys $400 worth of silk from a silk trader, and $30 worth of accessories from AccessoriesRUs to produce each dress. If the value-added by Enchante is equal to $300, then according to the value-added approach, the price of the designer dress should be: A) $430. B) $300. C) $730. D) $400.