LSE经济学挑战样题(6道)

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LSE经济学挑战样题(6道)

宏观经济学 Macroeconomics

1. If the consumer price index was 75 in the base year  and 130 in the following year, then the inflation rate was

a.57%      b.58%      c.73%      d.42%

Explanation:

Inflation rate = percentage change of CPI = ((130/75)-1)x 100%

2. Assume the MPC = 0.75 and considering only the multiplier effect, if government taxation increases by $60 billion, then national income will

a.Decrease 45 billion.      b.Decrease 240 billion.

c.Increase 240 billion.      d.Decrease 180 billion.

Explanation:

multiplier = 1/(1-MPC) = 1/ (1-0.75) =4.

Potential change in national change income = multiplier x tax change x MPC = 4x60x0.75=180LSE经济学挑战样题(6道)

微观经济学 Microeconomics

1. Ms. Jane resigned from her job with a $60,000 annual salary to open a coffee shop in her apartment. Her coffee shop’s annual revenue is $80,000, and her costs for coffee beans, facility maintenance, water, and electricity amount to $30,000 per year. Should Ms. Jane be satisfied with her coffee shop’s annual profit?

a.Yes, because her accounting profit is $50,000

b.Yes, because her economic profit is $50,000

c.No, because her economic loss is $20,000

d.No, because her economic loss is $10,000

Explanation:

Economic profit = Accounting profit – Implicit cost = $80,000 - $30,000 - $60,000 = -$10,000.

2. Dawn, Inc. produces and sells notebook in a perfectly competitive market at the price of $3 per unit and hires all the workers it needs at the wage rate of $23. Assume worker is the only variable input, and the firm’s production schedule is provided in table.

Number of workers Quantity of Notebook
0 0
1 10
2 21
3 28
4 33

Determine the profit-maximizing number of workers the firm should hire.

a.1      b.2      c.3      d.4

Explanation:

The firm maximizes profit where the value of the additional worker’s contribution (Marginal revenue) is just equal to orgreater than the wage(Marginal cost). Hiring a third worker would add only $21 of revenue while costing $23, leading to a loss. Thus, the profit-maximizing number of workers is 2.

LSE经济学挑战样题(6道)

定量基础 Quantitative Foundations

1. The mean of 4, 6, 24, 14, 2 is

a.4      b.6      c.8      d.10

Explanation:

Mean equals to average, (4+6+24+14+2)/5=10

2. The mean of 4 number is 30. The mean of the smallest 3 of them is 20. If the range of the data is 42, what isthe mean of the largest 3?

a.34      b.36      c.42      d.48

Explanation:

The sum of all 4 numbers is 4×30=120.The sum of the smallest 3 is 3×20=60.So, the largest number is 120–60=60.Given the range is 42, the smallest number is 60–42=18.Thus, the two middle numbers must sum to 120–(18+60)=42.

The largest 3 numbers therefore sum to 42+60=102, giving a mean of 102÷3=34

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