Question 1

If the average monthly wage on 1990 equal 1,000 SAR, what is today's average wage if the CPI on 1990 was 60, CPI on 2020 is 180.

a.

6,000 SAR.

b.

1,000 SAR.

c.

3,000 SAR.

d.

4,000 SAR.

Question 2

1. Which of the following is the productivity formula:

a.

Y = A F(L, K, H, N).

b.

Y = A F(1, K/L , H/L , N/L).

c.

Y/L = A F(1, K/L , H/L , N/L).

d.

Y/L = A F(L, K/L , H/L , N/L).

Question 3

Consider the following example for the Arabic coffee market in Saudi Arabia:

Domestic price (per KG)= 10 SAR.

World price (per KG) = 20 SAR.

Qd_ without trade =Qs_ without trade = 1000,000

After free trade: Qd = 600,000 , Qs = 1,300,000

With free trade and the price of the KG of Arabic coffee became 20 SAR, there will be ________ equal to __________ KG of Arabic Coffee.

a.

Export; 700,000.

b.

Import; 600,000.

c.

Export; 1,300,000.

d.

Import; 1,000,000

Question 4

1. Immigration might result into:

a.

Diluting physical capital per worker.

b.

Decrease human capital per worker.

c.

Stretching natural resources.

d.

All of the above.

Question 5

Consider the following example:

A fixed basket has 100 shoes and 1000 clothes.

Year Price for clothes 2019 [base year} 103 EAR EDD SAP. 202D 12D BAR 35D SAP