Macroéconomie approfondie

Niveau: PreMaster Rabat

Prof. Azzelarab Zaoudi

Travaux pratiques 1
Training activity 1

Activity 1:
1. Discuss the extent to which society can change each of the four factors of production. Give
some examples.

Discutez dans quelle mesure la société peut modifier chacun des quatre facteurs de
production. Donnez quelques exemples.

2. Education is sometimes referred to as “human capital.” In what sense is education like

capital goods?

L'éducation est parfois qualifiée de "capital humain". En quoi l'éducation s'apparente-t-elle

à un bien d'équipement ?
3. What are some options that a country has if it wishes to raise its standard of living? Can
we say that people are happier in a country with a higher standard of living?

L'éducation est un investissement, au même titre que l'achat d'un nouvel ordinateur. Elle
coûte de l'argent, à la fois directement et en temps passé, et elle augmente la productivité
et le niveau de vie.

Activity 2:
4. Indicate which of the four factors of production each of the following is an example of: 1)
a Macintosh™ computer, 2) an electronics engineer, 3) a Boeing 767™, 4) crude
petroleum, 5) Buildings, 6) energy and extractions, 7) Bill Gates, 8) college graduates.

Indiquez, parmi les quatre facteurs de production, celui dont chacun des éléments suivants
est un exemple : 1) un ordinateur Macintosh™, 2) un ingénieur en électronique, 3) un
Boeing 767™, 4) du pétrole brut, 5) des bâtiments, 6) de l'énergie et des extractions, 7) Bill
Gates, 8) des diplômés de l'enseignement supérieur.

5. Categorize the following by economic sector: 1) the Mustapha's family, 2) Marjane, 3)

Ministry of finance, 4) the University of Tangier, 5) the Grocery, 6) Toyota Motors, Ltd.

Classez les entreprises suivantes par secteur économique : 1) la famille Mustapha, 2)

Marjane, 3) le ministère des finances, 4) l'ISCAE, 5) l'épicerie, 6) Toyota Motors, Ltd.

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Macroéconomie approfondie
Niveau: PreMaster Rabat
Prof. Azzelarab Zaoudi

Activity 3
6. Indicate whether each of the following topics falls under the umbrella of microeconomics
or macroeconomics.

Indiquez si chacun des sujets suivants relève de la microéconomie ou de la macroéconomie.

a) the effect of protecting the trees on the price of lumber,

b) causes of the rise in inflation during the 2008's,
c) the persistent deficit in our trade with Spain,
d) effect of a proposed increase in the gas tax on demand,
e) the impact of a change in the exchange rate between the German Mark and the US dollar
on employment in the US and Germany,
f) a cost-benefit analysis of federal exhaust emission standards.

a) l'effet de la protection des arbres sur le prix du bois,

b) les causes de la hausse de l'inflation au cours des années 2008,
c) le déficit persistant de notre commerce avec l'Espagne,
d) l'effet d'une proposition d'augmentation de la taxe sur le gaz sur la demande,
e) l'impact d'un changement du taux de change entre le mark allemand et le dollar américain
sur l'emploi aux États-Unis et en Allemagne,
f) une analyse coût-bénéfice des normes fédérales d'émission de gaz d'échappement.

Activity 4
To illustrate how GDP is computed, let’s look at a simple, hypothetical country that produces
only two products: yogurt and economics textbooks. Five thousand yogurt cups are produced
and sold at $1 per cup in a certain year. And one hundred economics textbooks are produced
and sold at $80 per book, that same year.
Problem 1: What is the country’s GDP in the above example?
Problem 2: Let’s say that the next year, the quantities produced remain constant, but prices
double
Problem 3: What do you conclude?

Pour illustrer le calcul du PIB, prenons un pays simple et hypothétique qui ne fabrique que deux
produits : le yaourt et les manuels d'économie. Cinq mille pots de yaourt sont produits et vendus
à 1 $ le pot au cours d'une année donnée. Et cent manuels d'économie sont produits et vendus
à 80 dollars par livre, cette même année.
Problème 1 : Quel est le PIB du pays dans l'exemple ci-dessus ?
Problème 2 : Supposons que l'année suivante, les quantités produites restent constantes, mais
que les prix doublent
Problème 3 : Qu'en concluez-vous ?

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Macroéconomie approfondie
Niveau: PreMaster Rabat
Prof. Azzelarab Zaoudi

Activity 5

Example Problem: Let’s suppose that a very small country makes only two commodities:
pizzas and smart phones. The country bakes 200 pizzas at $10 each in year 1. In that same
year, it manufactures 100 smart phones at $50 each.

In year 2, the country makes 190 pizzas and 110 smart phones at respective prices of $12 and
$60 each. Using year 1 as the base year for calculating real GDP, what are nominal and real
GDP for each year?
Supposons qu'un très petit pays ne fabrique que deux produits : des pizzas et des téléphones
intelligents. Le pays fabrique 200 pizzas à 10 $ chacune au cours de l'année 1. Cette même
année, il fabrique 100 téléphones intelligents à 50 dollars l'unité.
Au cours de l'année 2, le pays fabrique 190 pizzas et 110 téléphones intelligents aux prix
respectifs de 12 et 60 dollars. En utilisant l'année 1 comme année de base pour le calcul du
PIB réel, quels sont les PIB nominal et réel pour chaque année ?

Activity 6

Exercise 1
Are these activities part of GDP?
• Mrs Miller picks flowers in her garden.
• Fruits are sold on the market.
• Patients, hurt in a car accident, are treated in a hospital.
• Pensioners do community work for free.
• A garage buys spare tyres to sell them to customers next year.

• Mme Miller cueille des fleurs dans son jardin.

• Des fruits sont vendus sur le marché.
• Des patients, blessés dans un accident de voiture, sont soignés dans un hôpital.
• Des retraités effectuent gratuitement des travaux d'intérêt général.
• Un garage achète des pneus de rechange pour les revendre à ses clients l'année suivante.

Exercise 2
By which methods can GDP be calculated?
Quelle méthode de calcul du PIB ?

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Macroéconomie approfondie
Niveau: PreMaster Rabat
Prof. Azzelarab Zaoudi

Exercise 3
Calculate GDP:
• Consumption (C) 310
• Investment (I) 115
• Government purchases (G) 60
• Exports (X) 305
• Imports (M) 245

Exercise 4
Abbreviations in 3, in addition T = Taxes / S = Saving Y income
• Explain the elements of this formula: (I - S) + (G - T) + (X - M) = 0
• What can be concluded if G > T and simultaneously I > S?

Exercise 5
Abbreviations in 03 and in 04
Calculate:
• X
• GDP
by taking the following data into account:
• G 60
• I 40
• M 150
• S 30
• T 80

Exercise 6
Calculate the value added, used for calculating GDP:
Calculer la VA dans le calcul du Pib
Bien intermediaries: Input goods 60
Production: Output 230
Pollution: Pollution due to the production process (estimated) 5

Activity 7
Calculer IPC et taux d’inflation
Bread Price Fuel price Basket of CPI Inflation rate
goods price
2015 1 MAD 2 MAD
2016 2 MAD 3 MAD
2017 3 MAD 4 MAD
Inflation rate (r) = (CPI Y2 – CPI Y1) / CPI Y1 x 100
Information:
Quantité consommée par an : 4 pains et 2 gallons de carburant
2015 année de base

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Macroéconomie approfondie
Niveau: PreMaster Rabat
Prof. Azzelarab Zaoudi

Activity 8
MCQ
1. QUESTION 10 points

According
say thac
to aour
coumry
text and
hasdata
the following
from the producc1
Bureau of
onLabor
numbers
Statistics:1.
for theseDtwo
Asfinal
a country
goods:grows economically an:I becomes mx e productiv
Year 1: 60 gallons of milk at $3 per gallon, and 2 bicycles at $300 per bicycle.
Year 2: 50 gallons of milk at $4 per gallon, and 3 bicycles at $400 per bicycle.
Using year 1 prices as the base year, what are this country's nominal GDP and real GDP for years 1 and 2?

1. D Nominal GDP in year 1 is $780. Nominal GDP in year 2 is $1,050. Real GDP in year 1 is $1,140. Real GDP in year 2
is $1,050.

2. D Nominal GDP in year 1 is $365. Nominal GDP in year 2 is $457. Rea l GDP in year 1 is $365. Real GDP in year 2 is
$356.

3. D Nominal GDP in year 1 is $780. Nominal GDP in year 2 is $1,200. Real GDP in year 1 is $680. Real GDP in year 2
is $1,400.

4. D Nominal GDP in year 1 is $780. Nominal GDP in year 2 is $1,400. Real GDP in year 1 is $780. Real GDP in year 2
is $1,050.

2. QUESTION 10 points

An economist esimates that her country's consumpuon expendlcu res ch s yea r amounc co $15,ooo, gross privace
domestic investments are $5,000, and the government spends $10,000 on fi nal goods and services. Exports amount to
an estimated $3.000, and imports add up to $4,000. Production of intermediate goods and services are estimated to be
$7,000 LI ,i s yedr. ALLUI tl i 11i:; l u li te esli llldl e, u r u,;, eLUIIUlll i>l, wl ldl is l lti, LUUI Illy·, GDP?

1. D $44,ooo

2. D $29,ooo

3. D $36,ooo

4. D $$37,000

3. QUESTION 10 points

According to our text and data from the Bureau of Labor Statistics:

1. D As a country grows economically an:I becomes mx e productive, the average citizen's amount of leisure t ime
increases.

2. D As a country grows economically an:I becomes mx e productive, the average citizen's amount of leisure t ime
$l ay$ relativ ely con $lant .

3. D As a country grows economically an:I becomes mx e productive, the average citizen's amount of leisure t ime
decreases.

4. n A~ ii count ry g rows Prnno m ic;illy ;i n1 hP,omps m '.lrP p rorlurt ivP. t hP ;ivpr;igp r iti7Pn's ;im ou nt of IPisur P t im P
first increases and then decrea ses.

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Macroéconomie approfondie
Niveau: PreMaster Rabat
Prof. Azzelarab Zaoudi

4. Q U ESTI ON 10 points

Of the following w hich is included in the calculat ion of t his year s GDP?

1. 0 All of the listed answ ers are included in this year's GDP.

2. 0 The value of a used car (excluding t he dealer's comm ission) t hat is sold this yea r and produced 3 yea rs ago.

3. 0 The comm ission ea rned by a used car dealer t his year from selling a ca r that was produced t hr ee years ago.

4. 0 This yea r's sale ot $10,000 worth ot shares ot General Motors stock.

5. Q U ESTI ON 10 points

Accor ding to Simon Kuznets an d his environmental curve:

1. 0 As a count ry's income gr ows (with a rising standa rd of living), it first experiences a det erior at ing environment.
and then an improving enviro nment.

2. 0 As a count ry's income gr ows (with a rising standa rd of living), it experiences a cont inually improving
environment.

3. 0 As a count ry's income gr ows (with a rising standa rd of living), it experiences a cont inually deteriorat ing
environment.

4. 0 As a count ry's income gr ows (with a rising standa rd of living), it first experiences an improving environment
and then a det erior at ing environment.

6. Q U ESTI ON 10 points

Let's say t hat a country produces 20 smart phones each priced at $500 this yea r, and financial consultants provide a
total of $6,000 in consulting service s to clients t his year. The country's labor force is 40 people and its population is 80.
Based on t his data, w hat is this country's per ca pita GOP?

1. 0 $200

2. 0 $800

3. 0 $400

4. 0 $600

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Macroéconomie approfondie
Niveau: PreMaster Rabat
Prof. Azzelarab Zaoudi

7. QUESTION 10 points

Let's say t hat a country has the following data for t his year:
income from wages = $3,000
income fr om inter est = $500
income from r ent = $1,500
income fr om profits = $800
capital consumpt ion allowance (depreciation) = $200
indir ect business taxes = $400
production of illegal goods and services = $900
pr oduction of intermed iat e goods = $600
government expenditur es on social progr ams = $1,500
What is t his country's gross dom estic pr oduct (GOP) and w hat is its net dom estic prod uct (NOP)?

1. 0 GOP is $8,500 and NOP is $8,100.

2. 0 GOP is $7,900 and NOP is $7,700.

3. 0 GOP is $9,400 and NOP is $9,200.

4. 0 GOP is $6,400 and NOP is $6,200.

8. QUESTION 10 points

Let's say t hat t his year a count ry produces 100 loaves of bread at $3 per loaf, and 2 ca rs priced at $500 per car. ~ also
pr oduces 1O bags of flour (used in the prod uct ion of t he bread) priced at$1 per bag, and 5 auto parts (used in the
pr oduction of the cars) priced at $2Ceach. This country's capital ccnsumpt ion allcwance (deprecation) is $40 and t he
government collects $60 in taxes. Based on t hese numbers, w hat is this count rfs Gross Oomest i: Product (GOP) and
w hat is this country's Net Domest ic Product (NOP) f:>r this year ?

1. D None of t he lis:ed an swer s is corr ect.

2. □ GOP is $1,200 and NOP is $1,300.

3. □ GOP is $1,400 and NOP is $1,360.

4. □ GOP is $1,300 and NOP is $1,260.

9. QUESTION 10 points

Let's say t hat an economy prod uces two final goods: ca rs and corn . During a particular yea r. it produces 5 car s priced at
$20,000 per car, and 30,000 ears of corn each priced at $1. What is t his country's GOP?

1. 0 30,000

2. D $100,000

3. 0 $70,000

4. D $130,000

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Macroéconomie approfondie
Niveau: PreMaster Rabat
Prof. Azzelarab Zaoudi

10. QUESTION 10 points

Real Gross Domest ic Product can best be described as:

1. D The sum total of all fi nal goods and services produced in a count ry or area within a certain period of t ime.
adjusted for inflat ion.

2. D The sum total of all fi nal and int ermediate goods and services prod uced in a country or ar ea wit hin a certain
period of time. not adjusted for inflation.

3. D The sum total of all fi nal goods and services produced by dom estic and foreign businesses in a count ry or area
within a certain period of t ime. adjusted for rising interest rates.

4. D The sum of all final and intermediate goods and services and raw materials produced in a country or area
within a certain period of t ime. minus exports and imports of merchandise.