A hypothetical country of KapociusLand produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is year 2.Table 4Refer to table 4. What was this KapociusLand’s GDP deflator in year 3?

Why do economists use models to study economic behavior?

Which of the following statements best represents the idea that “economics studies how society manages its scarce resources”?

Figure 6: demand and supply shifts Refer to figure 6. Panel (b) shows which of the following?

Markets are a good way to organize economic activity because

During their winter break, Sarah and Kaitlyn want to go, from Duluth, to the beaches in Texas. To make sure they get there, they use one of the models discussed in class: a map. Which of the following best describes an example of an assumption that is consistent with Sarah and Kaitlyn’s objectives?

Suppose Best Buy, a US-owned company, purchases $750,000 worth of smartphones from Taiwan this year, selling $500,000 of them to U.S. consumers. How do these transactions affect U.S. GDP this year?

Figure 3: Production possibilities frontier   Refer to figure 3. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Emerging political leader, Kaylee Dots, wins the general election and governs over two terms during 2057-2065. Table 3 below provides hypothetical economic data for 2057-2065, the years over which her policies are likely to be judged. Table 3 Refer to table 3. The inflation rate for 2058 and real GDP growth for 2059 are

In the circular-flow diagram, which of the following transactions does not take place in the markets for factors of production?