Question

Q- 1 Which of the following is capital?

A-The corn farmers use to feed the chicken that produces the eggs.

B-The eggs farmers sell to supermarkets.

C-The barn farmers put the chicken in at night.

D- The eggs you buy for breakfast

Q-2 A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported a GDP deflator of 85 in 2010 and 100 in 2009. Between 2009 and 2010,

A-		real output and the price level both fell.
B-		real output rose and the price level fell.
C-		real output and the price level both rose.
D-		real output fell and the price level rose

Q-3 An increase in the price of oil shifts the

		A- short-run Phillips curve right and the unemployment rate rises.
		B- short-run Phillips curve right and the unemployment rate falls.
C-		short-run Phillips curve left and the unemployment rate falls.
		D- short-run Phillips curve left and the unemployment rate rises

Answer 1

If Barn is not used in the process of production of hens and eggs it will not impact the production at all hence this production isnt function of barn as capital but Corn is necessary to feed hens to increase the production.Option A is correct response.

In this case the output is going to rise and less inflation is seen i.e price level falls therefore correct response is B

An increase in the price of oil shifts the Phillps curve right because due to increae in cost of production Production decreases which cuts down the inflation hence unemployement rate rises.

Correct option is A.