Econ 204

Econ 204

Name

Institution

Date

Question 1

Avatar: 218.1× 760.50/214.5 = 773.26

Titanic: 218.1 × 600.8/160.5 = 816.41

Star Wars: 218.1 × 461/60.5 = 1661.89

Shrek 2: 218.1 × 437.2/188.9 = 504.78

E.T The Extra-Terrestrial: 218.1 × 399.9/96.5 = 903.82

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|Movies |Nominal Box Office |Year Released |CPI In year |Receipts in 2010 in Real Dollars |
| |Receipts (millions) | |Released | |
|Star Wars |$461 |1977 |60.5 |1661.89 |
|E.T The |$399.90 |1982 |96.5 |903.82 |
|Extra-Terrestria| | | | |
|l | | | | |
|Titanic |$600.80 |1997 |160.5 |816.41 |
|Avatar |$760.50 |2009 |214.5 |773.26 |
|Shrek 2 |$437.20 |2004 |188.9 |504.78 |

Question 2

a. Beth is not working; she applied for a job at Wal-Mart last week and is awaiting the result of her application. She is not employed

b. Juan is vacationing in Florida during a layoff at General Motors plant due to a model changeover, but he expects to be recalled in a couple of weeks. He is not in the labor force.

c. Bob was laid off as a carpenter when a construction project was completed. He is looking for work but has been unable to find anything except a $10 per hour job, which he turned down. He is not in the labor force

d. Jade works 70 hours per week as a homemaker for her family of six. She is employed

e. Carson, a 17-year-old, works six hours per week as a delivery person for the local newspaper. He is employed

f. Brady works three hours in the mornings at the clinic and for the last two weeks has spent the afternoons looking for a full-time job. She is employed

Question 3

|Population age 16 and over |15,000 |
|Labor force |7,300 |
|Not currently working |4,500 |
|Employed Full-time |5,000 |
|Employed Part-time |1,100 |
|Unemployed |1,200 |
| | |

The total population is 34100

a) The labor force participation rate = 7300 + 5000 + 1100 = 13400

13400/34100 = 0.392961 × 100 = 39.3%

b) Unemployment rate = 1200/34100 × 100 = 3.52%

c) Employment population ratio =13400:34100 = 134:341

Question 4

a) The quantity of GPD produced is 5400/105, which is, 51.43

b) This is a long-run equilibrium level of GPD because when the price level is below 105, people demand more than suppliers can supply, thus suppliers will raise their prices as a way of lowering demand pushing the levels to the equilibrium point. On the other hand, when the equilibrium price is above 105, suppliers are willing to supply more than what is demanded and some forces will be generated to push down the prices of supply in as a way of raising demand. This would push the economy back to the equilibrium point (Gwarty, et al.,2002).

c) At the current period, the economy is operating at equilibrium and thus the economy operates under full employment. When the economy is not at full employment, the economy is not at full employment implying that the level of employment does not match the level of the labor force.

d) The current level of GPD cannot be sustainable in future because of other factors such as fluctuating inflation rate, increasing population and natural factors that affects the supply of goods and services. Such factors cause a shift in the equilibrium level of the economy thereby pushing the level of GPD to rise or fall (Gwarty, et al., 2002).

References:

Gwarty, J., Stroup, R., Sobel, R. & Macpherson, D. (2002). Economics (Private and Public Choice). Harcourt College Pub; 10th Bk&Cr edition

References: Gwarty, J., Stroup, R., Sobel, R. & Macpherson, D. (2002). Economics (Private and Public Choice). Harcourt College Pub; 10th Bk&Cr edition