## 7 thoughts on “Econ 101 – Homework #3”

1. for 1a are we just dividing the funding by the number of student as a baseline for 1c?

2. Amanda-

Yes, nominal funding / students = funding per student.

3. Here is a question from a student I received by email: “I am a little confused on question 1B, am I doing the problem right if I take Nominal Output / Funding Per Student X 100?”

A: For 1B you don’t need to involve students. Just do the conversion to real funding. In 1c you need to use the real funding amount and then divide by students.

4. Another question from a student: “I’m confused. How can the number of students in chart 1A also be the CPI in chart 1B? I saw someone else’s question and you answered you don’t need to involve students in 1B, but do the conversion to real funding. I’m still lost.”

After re-reading the questions I agree it isn’t clear. So let me rephrase. In 1A I am looking for *nominal* funding per student. In 1B I am asking you to adjust for inflation. In 1C I am implicitly asking what is the difference between *nominal* funding per student and *real* funding per student.

5. I’m still not understanding what to do for #1. but also on number 3, is the gdp mislabeled instead of gross investments?? i know they aren’t the same but i dont remember learning how to change gdp in to gross investments and I cant find anything in my notes…

1. i’m just going to come in early and work on it with you if thats ok? i think its more than what you can respond as an answer.

6. Amanda-

Certainly, I plan to get to class around 5:15 for questions.