ECON 214 – Problem Set 1

The receipts and year of release of the five movies with the largest nominal box office revenues, along with the CPI data of each year are presented below. Assuming that the receipts for each of the movies were derived during their year of release, convert the receipts for each to real dollars for the year 2010 (2010 CPI 218.1). Put the movies in order from largest to smallest real box office receipts.

Box Office ReceiptsMoviesNominal  Box Office Receipts  (millions of $)Year  ReleasedCPI In Year ReleasedAvatar760.502009214.5Titanic699.81997160.5Star Wars461197760.5Shrek 2437.22004188.9E.T. (Extra Terrestrial)399.9198296.5 

Box office receipts for Avatar which came out in 2009 and grossed $760.50 would be ______________  if converted to 2010 dollars. 

CPI for 2009  214.5 

CPI for 2010  218.1    

Round your answer to the nearest tenth and state it in this format: 123.4 

The $600.8 in gross receipts for Titanic in 1997 would be _______________ in 1977 dollars. 

CPI for 1997 160.5 

CPI for 1977  60.5

Beth is not working; she applied for a job at Wal-Mart last week and is awaiting the result of her application. Economists would classify this as:

Juan is vacationing in Florida during a layoff at General Motors plant due to a model changeover, but he expects to be recalled in a couple of weeks.  Economists would classify this as

Jade works 70 hours per week as a homemaker for her family of 6.  Economists would classify this as

Carson, a 17-year-old, works six hours per week as a delivery person for the local newspaper.  Economists would classify this as

Brady works three hours in the mornings at the clinic and for the last two weeks has spent the afternoons looking for a full-time job  Economists would classify this as

Use the following data to calculate the size of the labor force:

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Population by Employment CategoryPopulation 16 yrs and older25,500Not currently working  6,500Employed Full-time12,500Employed Part-time  2,500Unemployed  4,000. 

State your answer as an integer without any decimals. So five thousand would be 5000 not 5,000 or 5000.00

Use the following data to calculate the labor force participation rate:.  Population by Employment CategoryPopulation 16 yrs and older25,500Not currently working  6,500Employed Full-time12,500Employed Part-time  2,500Unemployed  4,000.

State your answer as a percentage without the percent sign. So seventy-two percent would be 72.0 not 72.0%

Use the following data to calculate the unemployment rate:

.  Population by Employment CategoryPopulation 16 yrs and older25,500Not currently working  6,500Employed Full-time12,500Employed Part-time  2,500Unemployed  4,000. State your answer as a percentage without the percent sign. So seventy-two percent would be 72.0 not 72.0% 

Copy of Use the following data to calculate the employment to population ratio:

.  Population by Employment CategoryPopulation 16 yrs and older25,500Not currently working  6,500Employed Full-time12,500Employed Part-time  2,500Unemployed  4,000. 

State your answer as a percentage without the percent sign. So seventy-two percent would be 72.0 not 72.0% or 0.72

Assume an investor purchases a $1,000 one-year bond on January 1, 2013 that pays $50 on January 1, 2014. The CPI increases from 220 in 2013 to 224.4 in 2014. The inflation rate during this year would be _______________. .State your answer as a percent WITHOUT the percent sign. For example 5.0 but not 5.0% or .05.  Assume an investor purchases a $1,000 one-year bond on January 1, 2013 that pays $50 on January 1, 2014. The CPI increases from 220 in 2013 to 224.4 in 2014. The interest rate, before adjusting for inflation, would be  _______________. . State your answer as a percent WITHOUT the percent sign. For example 5.0 but not 5.0% or .05.  Assume an investor purchases a $1,000 one-year bond on January 1, 2013 that pays $50 on January 1, 2014. The CPI increases from 220 in 2013 to 224.4 in 2014. The interest rate, after adjusting for inflation, would be approximately  _______________. .State your answer as a percent WITHOUT the percent sign. For example 5.0 but not 5.0% or .05  Assume an investor purchases a $1,000 one-year bond on January 1, 2013 that pays $50 on January 1, 2014. If inflation were 6% what would the investor’s real interest rate be?  . State your answer as a percent WITHOUT the percent sign. For example 5.0 but not 5.0% or .05.