ECO 1192 : PE 1 W-08.doc

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11 Jul 2014

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If the rate of interest is 16% compounded semi-annually, the effective rate of interest is: 16, 8, 17. 5, 16. 64, none of the above answers. If the rate of interest is 16% compounded annually, the nominal rate of interest is: 16, 8, 17. 5, 16. 64, none of the above answers. If the rate of interest is 16% compounded quarterly, the actual quarterly rate of interest is: 16, 4, 8, 16. 64, none of the above answers. If the rate of interest is 16% compounded continuously, the nominal rate of interest is: 16, 4, 17. 35, 16. 64% If the rate of interest is 16% compounded continuously, the effective rate of interest is: 16, 4, 17. 35, 16. 64, none of the above answers. Which effective (annual) rate of interest compounded annually is equivalent to an actual monthly rate of 1%: 12, 1, 12. 68, none of the above answers.

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Fact 11.1.1 January 31, 2008: Starbucks will open 75 more stores abroad than originally predicted, for a total of 975. February 25, 2008: For three hours on Tuesday, Starbucks will shut down every single one of its 7,100 stores so that baristas can receive a refresher course. June 2, 2008: Starbucks replaces baristas with vending machines. July 18, 2008: Starbucks is closing 616 stores by the end of March. 33) Refer to Fact 11.1.1. The decisions made on_ _ are short-run decisions because they 33) A) June 2 and July 18; are the more recent decisions B) January 31 and July 18; change the number of stores but not necessarily the number of employees C) February 25, June 2, and July 18; deal with stores located in the United States D) February 25 and June 2; change a variable factor of production but not a fixed factor of production E) none of the above

Chapter 15, Problem 1
The Bureau of Labor Statistics announced that in February 2008, ofall adult Americans, 145, 999,000 were employed, 7,381,000 wereunemployed, and 79,436,000 were not in the labor force. Use thisinformation to calculate:
a. The adult population
b. The labor force
c. The labor-force participation rate
d. The unemployment rate

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Prepare a 4-6 page analysis by answering the questions below. Be sure to cite your references using APA format.

For this assignment, you should use the information on the official government website: www.bea.gov/index.htm

Based on the information contained in the textbook and on the Web site above, answer the following questions:

1-) What does gross domestic product (GDP) tell us? How did GDP change from 2008? What caused these changes? What is real GDP? What was real GDP in 2008 and has it changed since 2008?

2-) What was national income (NI) for 2008? What does national income tell us? What is the difference between GDP and NI? How has NI changed since 2008? What caused these changes?

3-) What was disposable income (DI) for 2009? What does disposable income consist of? How did DI change from 2008? What caused these changes?

4-) Does GDP measure the well-being of society? Why or why not?

5-) What was GDP in 2008 (sometimes called GSP) for your state? How does your state rate when compared to other states?

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ECO 1192 : PE 1 W-08.doc

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