BADM 7200E Faik koray online EXAM 1,2&3
QUESTIONS AND ANSWERS 2025
Louisiana State University
Module 1
1. Use the following information to answer questions 1-5. The quantity of tea demanded, QD,
depends on the price of tea, PT, and the price of coffee, PC. The quantity of tea supplied, QS,
depends on the price of tea, PT, and the price of electricity, PE, according to the following
equations:
QD = 12 - 5PT + 3PC
QS = 30 + 2PT - 4PE
If the price of coffee is $4.00 and the price of electricity is $5.00,
A.
the equilibrium price of tea is $3.00 and the equilibrium quantity is 9.
B.
the equilibrium price of tea is $4.00 and the equilibrium quantity is 4.
C.
the equilibrium price of tea is $2.00 and the equilibrium quantity is 14.
D.
the equilibrium price of tea is $2.00 and the equilibrium quantity is 18.
2. The endogenous variables in this model are
A.
Price of tea and price of coffee.
B.
Quantity of tea and quantity of coffee.
C.
Price of tea and quantity of tea.
D.
Price of tea and price of electricity.
3. The exogenous variables in this model are
A.
Price of tea and price of electricity.
B.
Quantity of tea and price of electricity.
C.
Quantity of tea and price of coffee.
D.
Price of coffee and price of electricity.
4. If the demand equation becomes QD = 22 - 5PT + 3PC , it implies that
A.
The demand curve has shifted to the right.
B.
The demand curve has shifted to the left.
C.
There is a movement upward along the demand curve.
D.
,There is a movement downward along the demand curve.
, 5. If the price of coffee increases and the price of electricity decreases,
A.
The demand curve for tea shifts right and the supply curve for tea shifts left.
B.
The demand curve for tea shifts right and the supply curve for tea shifts right.
C.
The demand curve for tea shifts left and the supply curve for tea shifts right.
D.
The demand curve for tea shifts left and the f curve for tea shifts left.
6. Assume that apples cost $0.50 in 2015 and $1 in 2020, whereas oranges cost $1 in 2015 and
$1.50 in 2020. Assume that 2015 is the base year. If 4 apples were produced in 2015 and 5 in
2020, whereas 3 oranges were produced in 2015 and 4 in 2020, then in 2020
A.
Nominal GDP is $11, real GDP is $6.5, GDP deflator is 1.69, CPI is 1.7
B.
Nominal GDP is $5, real GDP is $11, GDP deflator is 2.2, CPI is 1.7
C.
Nominal GDP is $11, real GDP is $10, GDP deflator is 1.1, CPI is 1.5
D.
Nominal GDP is $11, real GDP is $7.5, GDP deflator is 1.47, CPI is 1.5
7. If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is
$741, and government purchases are $1,098, then net exports are:
A.
$131.
B.
-$131
C.
$31
D.
-$31
8. If real GDP grew by 6 percent and population grew by 2 percent, then real GDP per person
grew by approximately percent.
A.
2
B.
3
C.
4
D.
8
QUESTIONS AND ANSWERS 2025
Louisiana State University
Module 1
1. Use the following information to answer questions 1-5. The quantity of tea demanded, QD,
depends on the price of tea, PT, and the price of coffee, PC. The quantity of tea supplied, QS,
depends on the price of tea, PT, and the price of electricity, PE, according to the following
equations:
QD = 12 - 5PT + 3PC
QS = 30 + 2PT - 4PE
If the price of coffee is $4.00 and the price of electricity is $5.00,
A.
the equilibrium price of tea is $3.00 and the equilibrium quantity is 9.
B.
the equilibrium price of tea is $4.00 and the equilibrium quantity is 4.
C.
the equilibrium price of tea is $2.00 and the equilibrium quantity is 14.
D.
the equilibrium price of tea is $2.00 and the equilibrium quantity is 18.
2. The endogenous variables in this model are
A.
Price of tea and price of coffee.
B.
Quantity of tea and quantity of coffee.
C.
Price of tea and quantity of tea.
D.
Price of tea and price of electricity.
3. The exogenous variables in this model are
A.
Price of tea and price of electricity.
B.
Quantity of tea and price of electricity.
C.
Quantity of tea and price of coffee.
D.
Price of coffee and price of electricity.
4. If the demand equation becomes QD = 22 - 5PT + 3PC , it implies that
A.
The demand curve has shifted to the right.
B.
The demand curve has shifted to the left.
C.
There is a movement upward along the demand curve.
D.
,There is a movement downward along the demand curve.
, 5. If the price of coffee increases and the price of electricity decreases,
A.
The demand curve for tea shifts right and the supply curve for tea shifts left.
B.
The demand curve for tea shifts right and the supply curve for tea shifts right.
C.
The demand curve for tea shifts left and the supply curve for tea shifts right.
D.
The demand curve for tea shifts left and the f curve for tea shifts left.
6. Assume that apples cost $0.50 in 2015 and $1 in 2020, whereas oranges cost $1 in 2015 and
$1.50 in 2020. Assume that 2015 is the base year. If 4 apples were produced in 2015 and 5 in
2020, whereas 3 oranges were produced in 2015 and 4 in 2020, then in 2020
A.
Nominal GDP is $11, real GDP is $6.5, GDP deflator is 1.69, CPI is 1.7
B.
Nominal GDP is $5, real GDP is $11, GDP deflator is 2.2, CPI is 1.7
C.
Nominal GDP is $11, real GDP is $10, GDP deflator is 1.1, CPI is 1.5
D.
Nominal GDP is $11, real GDP is $7.5, GDP deflator is 1.47, CPI is 1.5
7. If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is
$741, and government purchases are $1,098, then net exports are:
A.
$131.
B.
-$131
C.
$31
D.
-$31
8. If real GDP grew by 6 percent and population grew by 2 percent, then real GDP per person
grew by approximately percent.
A.
2
B.
3
C.
4
D.
8
