Download Homework 2 - I can be contacted at

ECON 2105
Home Work #2
Chapters 4 - 8
Answers
Part I (20 points): Matching
Match the correct definition to the word or phrase below
1. F
4. K
7. E
10. C
2. G
5. I
8. J
3. A
6. B
9. D
Part II (25 points):
True/False, Explain: State whether the following statements are true or false and explain
why in one sentence.
1. False. The critical point is to note that the labor force excludes certain portions of
the population such as those under 16, the retired and military personnel.
2. False (or true with reservations). Real per capita GDP is a measure of economic
activity, not human happiness. But you can argue that it is one of the best
statistics available considering that economic activity in part reflects opportunities
in an economy.
3. True. People’s knowledge and skill are collectively called human capital and are
assets that make people more productive.
4. True. Those people who can raise their prices (this includes wages and interest
rates) to account for inflation are not hurt by price increases. Those who are
locked into receiving lower prices for their goods or services are hurt by general
price increases.
5. False. If you know the directions of the shifts in supply and demand, you can
predict either the change in quantity or price but not both.
Part II (30 points): Multiple Choice
1. C
4. A
7. C
10. C
2. A
5. C
8. A
3. D
6. A
9. C
Part IV (25 points) Understanding the Data
Georgia
1. Trade, Transportation and Utilities employees the largest number of Georgians at
818,700.
2. Georgia lost 1.8 percent of its Information jobs in 2004.
3. Jobs in Education increased by 3 percent in Georgia in 2004.
Macon
1. Government is the largest employer in Macon with 35,900 jobs.
2. Manufacturing lost 8.6 percent of its jobs in 2004 (and it lost over 10 percent of its jobs
in 2003).
3. Professional & Business Services grew the fastest in 2004, increasing by 3.7 percent.
Beige Book:
Overall the report looks very upbeat. I will be looking for you to link your experiences
with specifics cited in the report.