Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter P8, Problem 3KC
To determine
Impact of higher inflation in the US on France.
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1A. (Liu) An American university has enough places for 9000 students. Government restrictions
mean that at least 75% of the places must be given to US students but the remainder may be
given to non-US citizens. There are 5000 residential places available on campus.
All overseas students and at least one-quarter of the US students must be given places on
campus. The university get $12000 in tuition fees for each US student and $15000 for each
overseas student. It wants to maximize the fees received.
Using the letter x for the number of places given to US students and y for the number of places
for overseas students,
(1) write down an expression for the objective function and state whether it is to be maximized
or minimized;
(2) write down the constraints that define the feasible region and explain your reasoning
carefully;
(3) identify which aspect of the original problem has been overlooked in parts (a) and (b);
(4) graph the feasible region.
Connect Problem CP 28-09 (algo)
Consider the following data for a particular country.
Real GDP per Capita, Year 1 Population, Year 1 and Year 2
$37,500
400 million
Growth Rate of Real GDP,
Year 1 to Year 2
6 percent
Inflation Rate
4 percent
Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places.
a. What is real GDP per capita in year 2?
$
b. What is real GDP in year 2?
trillion
5) (KEY QUESTION) Consider the following data assuming that these are the only products produced and consumedin the economy:Product 2019 Quantity 2019 Price ($) 2020 Quantity 2020 Price ($)Beer 14 18 16 13Chocolate 15 11 17 12Using 2020 as the base year answer the following questions:a. What was the nominal GDP in 2019 and 2020?b. What was the real GDP in 2019 and 2020?c. What was the GDP deflator in 2019 and 2020?d. What was the growth rate of nominal GDP between 2019 and 2020? What was the growth rate of realGDP between 2019 and 2020? What was the growth rate of the GDP deflator between 2019 and 2020?e. Calculate the value of the basket in 2019 and 2020.f. Calculate the CPI for 2019 and 2020.g. Calculate the annual inflation rate over the 2019-2020 period.h. (This part is OPTIONAL in case you want more practice, this type of question is usually on thefinal exam :-) Change your base year from 2020 to 2019. Re-do your answers to parts a, b, and c.
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