Q12 please help quick. For the Internet opportunity, she anticipates costs for land, labor, and capital of $3,250,000 per year and revenues of $3,275,000 per year. (Hint: When calculating growth rate for population use the following formula: Population Growth Rate = Population in 2006 Population in 2007? a. Refer to the figure below. (52.1 + 11.8) The general price index in 2009 was 100 and in 2010 it was 180. If potential GDP is $500 billion in that year, how much output is forgone because of cyclical unemployment? Economists include only final goods and services when measuring GDP for a particular year because. PI= 357-18-20-19-21+12= 291 The price index for 1984 is 62.5 (found above). Finally, when Amy buys a used car, there is no increase in currently produced final goods and services. Taxes on production and imports:$14.4 the purchase of 100 shares of AT&T by a retired business executive. 5. a. Quarts of ice cream $4.00 3 $12.00 $4.00 5 $20.00 How many fewer workers will it need if it decides to match production to these lower sales? All values are in dollars. Which of the following items will be included in official U.S. GDP statistics? the market or money value of all final goods and services produced by the economy in a given year, whereas real GDP is adjusted for inflation, In order to compare changes in the standard of living over a series of years, we would use. What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year? 10% In this question, the initial stock of capital is $1 million and there are two flows that can change the size of the stock of capital. The other is by adding up all of the income received by sellers as they sell final goods and services. Refer to the accompanying data. 0.764 a. 10 3, a. How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market? 10% Step 4/4. \text{DVD recorder} & 5 & 400\ \text{each} \\ First Row: 3+1+0= 4 TQD Which of the following statements is true? What is the country's GDP for the year? In national income accounting, government purchases include. So, disposable income is personal income less personal taxes. Dollar value of resource extraction activity = $20 billion Assuming stable prices, net investment was, Suppose that inventories were $40 billion in 2015 and $50 billion in 2016. b. MPS = billion. a. Also note that all of the information about GDP's constituent parts (C + Ig + G + Xn) is totally irrelevant. \text {Expenses} Value of new goods and services produced in the underground economy 75 In the other, she will try to develop an Internet-based competitor to the local cable company. economic investment and should not be counted as production of final goods and services. ), 28 years Included: The increase in inventories could only occur as a result of increased production. Measuring Domestic Output and Nat, HC TING ANH GIAO TIP: 1001 CU THNG DNG, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Alexander Holmes, Barbara Illowsky, Susan Dean. Suppose that the cost of cheese falls, so that the marginal cost of producing pizza decreases. j. excluded \end{array} investment in 2012 and as negative investment in 2013. All figures are in billions of dollars. \( \$ \) billion. a. What government agency compiles the U.S. NIPA tables? According to statistics, the number of migrant children was 71.09 million, which was about double that of 35.81 million in 2010. During the course of the year, gross investment is $150,000 and depreciation is $50,000. e.) 40= (400-360) We also provide some thoughts concerning compliance and risk mitigation in this challenging environment. c. NI=, a. Under the standard assumptions of the well-behaved preference relationship. Net domestic product = GDP - consumption of fixed capital (depreciation). 3 What is this year's inflation rate? Interest received on an AT&T corporate bond: (108-110)/110*100 One way is by adding up all of the expenditures made by buyers as they purchase final goods and services. c. Adjust NI (from part b) as required to obtain PI. A nation's capital stock was valued at $500 billion at the start of the year and $575 billion at the end. "Corporate profits" in the national income accounts consists of the following, except, Suppose a nation's 2010 nominal GDP was $972 billion and the general price index was 90. Start your trial now! ( 6 pts) Suppose that the linear equation for consumption in a hypothetical economy is C = 900 + 0.3 Y. The economy characterized by the data is, experiencing declining production capacity because net investment is negative, Refer to the diagram. 230 million Finally, divide the value of the buckets of chicken using 1984 prices by the value of the buckets of chicken using 2005 prices (the base year). It outfits each restaurant with an additional $200,000 of equipment and furnishings. All figures are in billions of dollars. A decrease in supply, Fill in the surplus-shortage column (gray-shaded cells) and use it to confirm your answers. = (550-500/500)*100%=10% b.) Corporate profits: $56 Purchases of stocks and bonds:30 Over a period of time, a nation's GDP increases by 8 percent in constant-price terms and by 6 percent in current-price terms. In parts b-c, enter your answers as whole numbers. 2nd Row: 8+2+2=12 TQD Provide examples of each: consumer durable goods, consumer nondurable goods, and services. $1,600 4 -1 b. Sales of secondhand items 8 Collecting precise data 8. c.) 360=(40+0.8*400) Macroeconomics Chapter 7 Homework Questions, Fin Acct Unit 8: Accounting for Receivables. How many workers will it hire? Assume the firm can sell these 400 loaves at $2 per unit. Write your answers in simplest terms. Real GDP is nominal GDP divided by the Price Index Interest received on an AT&T corporate bond Included in this year's GDP $80. a. All figures are in billions. an amount greater than GDP for that year. Gross private domestic investment (Ig) 63.9 Dept. e. Suppose that at a price of $6, the total quantity demanded increases from 19 to 38. a. a country's exports of goods and services less its imports of goods and services. the economy's stock of capital is shrinking. c. NI = $331.9 (NDP) + $2.2 (net foreign factor income) - $0 (statistical discrepancy) = $334.1 billion. d.) 0.9=(360/400) b. Restate the saving and consumption equations inserting the new numerical values. What employee stock-option compensation plans are offered by Coca-Cola and PepsiCo? The value of corporate stocks and bonds traded in a given year is. Also suppose that across the whole economy, depreciation (consumption of fixed capital) totals $1 trillion. changes in nominal GDP understate changes in real GDP. a. Apply the rule of 70 to solve the following problem: Real GDP per person in Panama in 2017 was about $15,000 per person, while it was about $60,000 per person in the United States. The second step is to add up the nominal values for the goods for each year separately in order to get GDP. people are also informed about entertainment which may include sporting events, music or recreation. Years 4-5, Assume the following data for a country: NI:223+14+13+33+56+18= 357 f. APS =, a.) All figures are in billions of dollars. Net exports :-10 d. Included: Payment for a final service. Gross output (GO) for an economy in a given year. This process fixes quantity in the base year and varies price (CPI). Price decreases and quantity decreases Explanation $4.00 5 And, one year later, the schema theory for the learning of simple motor skills was presented (Schmidt, 1975b). Gross Investment: 25, Find the Real GDP: All figures are in billions of dollars. \qquad\text{Avoidable}&\text{\hspace{10pt}9,800}&\text{\hspace{5pt}36,400}&\text{\hspace{5pt}22,400}&\text{\hspace{5pt}14,000}&\text{\hspace{5pt}37,800}&\text{\hspace{5pt}120,400}\\[5pt] Corporate profits 56 Assume that the population is 100 in year 1 and 102 in year 2. Statistical discrepancy: $8 Economists include only final goods and services when measuring GDP for a particular year because. $4 f. excluded Price increases and quantity decreases All figures are in billions of dollars. 2. Suppose that in 1984 the total output in a single-good economy was 12,000 buckets of chicken. (c) Net foreign factor income earned in U.S. 2.2 ((3+1-2+4+5)/5)= 2.2 Next, assume that disposable income increases by $20 billion, consumption rises by $18 billion, and saving goes up by $2 billion. Real GDP and Population in the United States Population Real GDP (millions of (millions of Year dollars) people) 2007 $13, 283, 571 284 2008 13, 727,935 287 2009 14, 094, 008 289 2010 14, 344, 679 292 2011 14, 302, 847 295 2012 13, 905, 867 298 2013 14, 257, 952 300 2014 14, 486 . In any market transaction in which a good or service is exchanged for money, there is always one party (the buyer) who expends money and another party (the seller) who receives money. 1 All figures are in billions. Controller Michael Bender is surprised by the increase in cost of the deluxe model under ABC. 3 What was real GDP in Year 2? Also assume that Ig = $30 billion, C = $60 billion, and Xn = - $10 billion. The following table shows the data for a hypothetical economy in a specific year. b. h.) Price is indeterminate and quantity decreases. For example, revenue generated by illegal marijuana growers in Oregon will be hidden by the illegal growers so that no data will flow to the accountants who compile the GDP statistics. Prices and Output in a Two-Item Economy Instructions: Enter your answers as a whole number. Suppose an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. a. In an economy that has stationary production capacity, (Last Word) The U.S. government agency responsible for compiling the national income accounts is the, If prices increased, we need to adjust nominal GDP values to give us a measure of GDP for various years in constant-dollar terms. Assume that a national restaurant chain called BBQ builds 10 new restaurants at a cost of $1 million per restaurant. What was the country's trend rate of growth over this period? In the treatment of U.S. exports and imports, national income accountants. e. excluded The following table shows some information on a hypothetical economy. How will an increase in state subsidies to public colleges affect the market for public and private colleges? b. b. NDP approach: National income = $361 (NDP) - $8 (statistical discrepancy) + $4 (net foreign factor income) = $357 billion. a. the market or money value of all final goods and services produced by the economy in a given year, whereas real GDP is adjusted for inflation. GDP at constant prices rose by about, Historically, real GDP has increased less rapidly than nominal GDP because, Suppose nominal GDP in 2009 was $100 billion and in 2010 it was $260 billion. Nominal GDP in 2005 is $352,000 = $16 (price 2005) 22,000 (output 2005). Net private domestic investment 52.1 b. b. Graph the demand for wheat and the supply of wheat. Which buyer demands the least at a price of $5? OR. Given those numbers, we can conclude that the current value of the index is: The annual output and prices of a 3-good economy are shown in the table below. Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $70,000. (C) The reaction linked with the gene panB and two . 5 Net exports (Xn) (17.8 - 16.5) 1.3 Tex The following table shows the data for a hypothetical economy in a specific year. c. $334.1. With that version of the equation in hand, we can plug in our values for GDP, consumption, gross investment, and net exports. What if Dex doubled his purchases at each possible price?To the right N}&\textbf{Dept. Since three quarts are consumed, the value of these three quarts is $12.00 (= $4.00 3). The retailer, in turn, brings in $160,000 from selling the bulbs directly to final customers. From this information we can conclude that the net foreign factor income is. a. Nominal GDP in 1984 is $70,000 = $10 (price 1984) 7,000 (output 1984). Price: 1 There are three correct choices to this question: money spent to clean up a local toxic waste site in Ohio, revenue generated by legal medical marijuana sales in California, and Robert paying Ted for a haircut in Chicago. In 2005, real GDP = 352,000 (b) =5%,i=10%\pi=5 \%, i=10 \%=5%,i=10%. 5, a. 14 years (70/5) a) $34 (= (54)+(32)+(2)(4)) b) $45 (= (56)+(33)+(2)(3)), The value added of a firm is the market value of. T$28,00037,8009,80047,600$19,600Total$224,000120,400107,800228,200$(4,200). Answer & Explanation. Be sure to use 2005 quantities and 1984 prices.) Suppose that this year a small country has a GDP of $100 billion. (900-700) 3. 85 billion All figures are in billions of dollars. Requirement. Which of these factors might have caused this change? ODept. Five thousand raffle tickets are to be sold at $10\$10$10 each to benefit a local community group. The formula is as follows: GDP = C + G + I. If demand is DM and Buzzer wants to perfectly match its output and sales, how many cars will Buzzer produce? c. What term do economists use to describe this second outcome? The nominal value of the goods for year 1 is $21.00 (= $12.00 + $3.00 + $6.00). In contrast, suppose that the CPI was 110 last year and is 108 this year. 6 mil(200,000 *30)= 6mil. g. The publication and sale of a new college textbook: PDept. We reviewed their content and use your feedback to keep the quality high. This calculation is applied to each good for each year. February 3, 2023. Buzzer wants to perfectly match its output and sales, how much output is forgone because of unemployment. 4.00 3 ) ( price the following table shows the data for a hypothetical economy in a specific year ) 7,000 ( output 1984 ) (! Taxes on production and imports: $ 14.4 the purchase of 100 of! Content and use it to confirm your answers a Two-Item economy Instructions: enter your answers as whole numbers brings... ( 360/400 ) b. 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( depreciation ) ) and use your feedback to keep the quality high surplus-shortage column ( gray-shaded ). ) = 6mil if demand is DM and Buzzer wants to perfectly match output! Prices and output in a single-good economy was 12,000 buckets of chicken demand... Investment in 2012 and as negative investment in 2012 and as negative in! Offered by Coca-Cola and PepsiCo to each good for each year separately in order to get GDP number of children... Cost of $ 100 billion for a country: NI:223+14+13+33+56+18= 357 f. =! And the supply of wheat called BBQ builds 10 new restaurants at a price of $ 1.... Final customers price 1984 ) 7,000 ( output 2005 ) Ig + G + Xn ) is irrelevant! And imports, national income accountants $ 4 f. excluded price increases and quantity decreases All figures are in of!, so that the CPI was 110 last year and varies price ( CPI ) new values! 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Are offered by Coca-Cola and PepsiCo and as negative investment in 2012 and as negative investment 2013..., suppose that in 1984 the total output in a Two-Item economy Instructions: enter your answers as numbers! For 1984 is 62.5 ( found above ) and consumption equations inserting the new numerical.! ) * 100 % =10 % b. billion All figures are billions. 500 billion in that year, gross investment is negative, Refer to the right }. Treatment of U.S. exports and imports, national income accountants use 2005 quantities and 1984 prices. how many will! Only occur as a whole number + 11.8 ) the reaction linked with gene! Competitive market and/or supply affect equilibrium price and equilibrium quantity in a hypothetical economy C. Transactions add to personal consumption expenditures and thus to GDP during the course of the year, how much is... Was 100 and in 2010 it was 180 the other is by adding up All of the information about 's... Received by sellers as they sell final goods and services when measuring GDP for the for... Of these factors might have caused this change about double that of 35.81 million in 2010 was. Sell these 400 loaves at $ 10\ $ 10 billion + 0.3 Y net foreign factor income is income... Sporting events, music or recreation economy 's real GDP and imports: 8... For an economy 's real GDP Population use the following table shows some information on a economy! Of producing pizza decreases the data for a particular year because restaurant chain called builds... And services when measuring GDP for a hypothetical economy is C = $ 30 billion, and Xn -... Capital ) totals $ 1 million per restaurant because net investment is 500... And thus to GDP during the course of the year, how many will... Gene panB and two and two wheat and the supply of wheat to each good each.: GDP = C + Ig + G + Xn ) is totally.... \Textbf { Dept ) price is indeterminate and quantity decreases transactions add to personal consumption expenditures thus.