1.

(a) Price P' P, > D + + 0 Q. Q Quantity (e) Quantity (b) Price Price Quantity Refer to the Figure 4-5. Which of the four graphs represents the market for back to school clothes in late August? () a. graph C () b. graph A O . graph D () d. graph B Figure 4-6 Price D D1 Quantity Refer to the Figure 4-6. What could cause the shift from D to DI? O a. a decrease in the price of a complement O b. an increase in technology O C. an increase in price O d. a decrease in the price of a substituteTable 4-1 QUANTITY QUANTITY DEMANDED SUPPLIED Refer to the Table 4-1. If the price were $30, what would happen? a. A shortage of 90 units would exist and the price would tend to rise. b. A surplus of 45 units would exist and the price would tend to fall. C. A surplus of 45 units would exist and the price would tend to rise. d. A shortage of 90 units would exist and the price would tend to fall. Table 5-4 Country [Nominal GDP, 2000 [Population, 2000 P [510.400 million [30.1 million Q 59000 million 33.7 million R [$7200 million 12.6 million Refer to Table 5-4. On the basis of the information in the table, which list below contains the correct ordering of GDP per person (from highest to lowest)? () a. PR Q O b. R,Q,P () R PQ () d. PQ,R The market basket used to calculate the CPI in Aquilonia is: four loaves of bread six litres of milk, two shirts, and two pairs of pants. Last year, the price of bread was $1.00 per loaf, the price of milk was $1.50 per litre, the price of a shirt was $6.00, and the price of a pair of pants was $10.00. This year, the price of bread is $1.50 per loaf, the price of milk is $2.00 per litre, the price of a shirt is $7.50, and the price of a pair of pants is $13.00. What is the inflation rate, as measured by the CPI, for Aquilonia between last year and this year? () a. 20.00 percent () b. 31.1 percent () c. 35.56 percent () d. 24.4 percent