FOR BONUS POINTS – NO ANSWER = NO BONUS POINTS Your friend just told you they signed up for Kuester’s class next summer.  What advice would you give them?  If you could give Kuester one piece of advice for improving the class what would it be?

Which of the following goods is NOT a part of GDP in the USA?

Policy makers wisely focus on trying to prevent this type of unemployment

According to our discussion in class, less developed economies have a greater ability to grow than fully developed economies and according to the Solow Growth model, we expect them to grow faster than developed economies. HOWEVER, if these countries do not have a stable government and well-defined property rights they are very unlikely to experience this type of faster growth.  This is why so many countries remain poor unfortunately!

Holding other things equal, the stimulus plan (in response to COVID 19)  increased the national debt of the United States.  Also relative to GDP, the USA increased their debt more than most European countries.

Suppose there are 300 people in Econland. There are 50 children and 20 retired people. There are also 30 discouraged workers. There are 150 people working and 50 other people actively seeking work.   What is the unemployment rate in Econland? (round to nearest percent)

Provide a good example of a sunk cost as it has affected your life  How should we as “embryo economists” deal with sunk costs?!

During the past eighteen months the US Dollar has ________________________ vs. the Euro.

Suppose Econland has 1000 new immigrants who are going to enter the labor force enter the country.  The PPF will not move but we expect there to be a situation where this country ends up closer to the PPF.

Suppose you are the chief economist in Econland and the current unemployment rate is 16 percent and the current inflation rate is 0.2 percent. List one MONETARY policy and one FISCAL policy that you might propose to fix the problem if you believed that government intervention, in this case, is appropriate.