Math Skills Prerequisite to ECON 2030
ANSWERS
The four problems below are representative of the mathematics required for dealing with the basic relationships in macroeconomics. You should be able to solve these sample problems even though you do not yet know what the various symbols stand for.


         Problem 1:
 
  Given:  C = 750 + 0.90Y 
    I = 350 
    G = 400 
     
  Find: the values of Y and C that satisfy the equation: Y = C + I + G

 

          Problem 2:
 
  Given: DY = [-b/(1-b)] D
    b = 2/3 
     
  Find: the value of DT that yields a  DY of 200




Note::  The Greek letter "D" (Delta) means "change." The equation indicates that the change in Y is -b/(1-b) times the change in T.
You need not (and should not) convert the fraction 2/3 to 0.66666666666666666666666666666666666666666666.

 

          Problem 3:
 
  Given: M = C + D 
    D = R/r 
    C = 600
    R = 400 
     
  Find: the value of r that yields an M of 2,600

 

          Problem 4:
 
  Given: C = a + bY, where a and b are known parameters
    Y = C + I
   
   Find: the equation that describes how C depends upon I
     
  Hint: You're looking for an equation in the form C = h + jI, 
where h and j are expressions in a and/or b. 




Application: Suppose that a = 400 and b = 0.75. 

 

 Find: the corresponding values of h and j





Write C = h + jI, using these numerical values.





When I = 600, how much is C? 

 

          Problems 5a and 5b:
 
 
For the determination of course grades, each student will have the benefit of two alternative weighting schemes. The two one-hour exams plus the final exam will count 1/3, 1/3, and 1/3 or 1/4, 1/4, and 1/2, depending upon which weighting gives the higher score.
    
The break points for letter grades are set at 90, 80, 70, and 60.



  Problem 5a: Suppose your scores for the two one-hour exams are 92 and 97.

What is the lowest score you could make on the final exam and still earn an A for the course? (Ignore prospects for rounding the course average.)

     
  Problem 5b: Suppose your scores for the two one-hour exams are 73 and 69.

What is the lowest score you could make on the final exam and still earn a B for the course? (Again, ignore prospects for rounding the course average.)



 
 
 
 
The Political Science Anchor for ECON 2030

Separate these terms, names, and phrases into the appropriate "LEFT" and "RIGHT" categories--beginning with LEFT on the left and RIGHT on the right.  
LEFT

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LEFT
RIGHT
LIBERAL
RON PAUL
DEMOCRAT
REPUBLICAN
RED STATES
DICK CHENEY
BLUE STATES
LAISSEZ FAIRE
JOHN KENNEDY
CONSERVATIVE
BARACK OBAMA
RONALD REAGAN
BIG GOVERNMENT
HILLARY CLINTON
CENTRAL CONTROL
SMALL GOVERNMENT
MINIMUM-WAGE LEGISLATION
PRIVATIZATION OF SOCIAL SECURITY
TAX-FUNDED COMPREHENSIVE MEDICAL CARE
MARKET SOLUTIONS TO ECONOMIC PROBLEMS
GOVERNMENT SOLUTIONS TO ECONOMIC PROBLEMS

 

RIGHT

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The 20th Century History Anchor for ECON 2030
Arrange the dozen events below in chronological order, giving approximate dates. 

EVENT 

DATES
 
 
 
 

  1. WORLD WAR II
  2. THE GREAT DEPRESSION
  3. ELECTION OF WOODROW WILSON
  4. WORLD WAR I
  5. INTRODUCTION OF THE MODEL T FORD
  6. VIETNAM WAR
  7. ELECTION OF JOHN F. KENNEDY
  8. ELECTION OF FRANKLIN D. ROOSEVELT
  9. KOREAN WAR
10. ELECTION OF HERBERT HOOVER
11. STOCK MARKET CRASH
12. PEARL HARBOR

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