Output and price data for a five-year period are shown in the table. Years 4-5, Assume the following data for a country: All figures are in billions of dollars. If, instead, the economy was at point c at the end of the 10-year period, by what percentage did it fall short of its production capacity? c. How big is the surplus or shortage at $3.40?There is a shortage of 23 thousand bushels. a. Statistics derived from national income accounting. The only two numbers you need to calculate NDP are GDP and depreciation. Explanation Economists include only final goods and services when measuring GDP for a particular year because. What is the role of the financial system? Price Index = Nominal GDP/Real GDP. What is the GDP price index for 1984, using 2005 as the base year? 2nd Row: 8+2+2=12 TQD c. In the fourth column (gray-shaded cells) of the table in part a, enter the amount by which the quantity supplied at each price changes due to the increase in product costs. Your actual body temperature is 98.4F98.4^{\circ} \mathrm{F}98.4F, but your thermometer gives a reading of 97.9F97.9^{\circ} \mathrm{F}97.9F. How will an increase in state subsidies to public colleges affect the market for public and private colleges? In these data, U.S. exports are. All figures are in billions of dollars. Government Purchases: 20 h. Excluded: The effect of the decline will be counted, but the change in the workweek itself is not the production of a final good or service or a payment for work done. Price increases and quantity is indeterminate e.) 40= (400-360) Briefly explain why? To measure changes in the value of production and income in the economy, Depreciation is all of the following, except, By summing the dollar value of all market transactions in the economy, we would, obtain a sum substantially larger than the GDP, The base year of the price index given in the accompanying table is, GDP in an economy is $11,050 billion. How big is the economy's stock of capital at the end of the year? Price: 1.50 The materials handling, machine setup, and insertion of parts activity costs also would remain the same. This memorandum surveys U.S. economic sanctions and anti-money laundering ("AML") developments and trends in 2022 and provides an outlook for 2023. \( \$ \) billion. Write your answers in simplest terms. What is the country's GDP for the year? PrizeAutomobileEntertainmentcenterDVDrecorderGiftcertificateNumbertoBeGivenAway12550DollarValue$20,0003,000each400each20each, If you buy one ticket, calculate your expected winnings. 454954545 \frac{4}{9}-5 \frac{4}{5} a.What is the equilibrium price in this market?$4.00 per bushelAt what price is there neither a shortage nor a surplus?$4.00 per bushel a measure of the price of a specified collection of goods and services compared to the price of a highly similar collection of goods and services in a reference year. Consumption of fixed capital: $11.8 Transfer payments 12 \text {Net} \\ Category Value Personal consumption expenditures $70 Purchases of stocks and bonds 30 Net exports -10 Government purchases 20 Sales of This information is extraneous to the question. What will be the per-unit cost of the app if it sells 1,000 units?$100.50 All figures are in billions of dollars. a. 62.5 4,500 [TABLE] The following table shows the data for a hypothetical economy in a specific year. Category Value By using their emergency response fund, much of which is funded through private philanthropy, the IRC was able to respond immediately to the crisis, assessing what the need is and the role it could play in helping impacted communities. a. b. A value engineering study by Eltons employees suggests that modifications to the finishing process could cut finishing cost from$50 to $40 per hour and reduce the finishing direct labor hours per deluxe rim from 6.5 hours to 6 hours. S1 Quantity Supplied: 15, 10,5 ( look at the first graph)Change in Quantity Supplied ( Subtract S1-S2= -Change in Quantity Supplied) Real GDP 1968 = $929.8/(24.01/100) = $3,872.55 (Inflating), Chapter 27. What will be the new level of saving? Corporate author : International Scientific Committee for the drafting of a General History of Africa Person as author : Ki-Zerbo, Joseph [editor] If output increases by 8 percent from Year 5 to Year 6, then in that period, The ZZZ Corporation issued $25 million in new common stock in 2016. 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. Finally, assume that in 2005 the price per bucket of chicken was $16 and that 22,000 buckets were produced. . Government purchases 72 Real GDP in year 3 is, The U.S. Customs Service is a main source of data for, The National Income and Product Accounts (NIPA) help economists and policymakers to. All figures are in billions of dollars. 125. Which buyer demands the least at a price of $5? \text{Expenses}\\ If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country? What is the economic meaning of (1 - b)? c. If the GDP measure incorporated the value of the services of stay-at-home spouses, the new GDP amount would equal $525 billion (= $500 billion (from above) + $25 billion (stay-at-home spouses)). 4 -1 And, one year later, the schema theory for the learning of simple motor skills was presented (Schmidt, 1975b). All dollars are in billions. Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by adding up the types of income and taxes that make up NI (method 2). \ ( \$ \) billion. 10% d. Did the increase in production costs cause a "decrease in supply" or a "decrease in quantity supplied"? Category Value ( Use S2 first then Price) to graph S2 Personal Saving: $20 c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in the table. What is New Zombie's real GDP? f) Any potential sources of bias you can detect and any issues you see in generalizing to the population of interest. Recall and use information 13. b. Method 2 = billion. arrow_forward Literature guides Concept explainers Writing guide Popular textbooks Popular high school textbooks Popular Q&A Business Accounting Economics Finance Leadership Management Marketing Operations Management Engineering Bioengineering Chemical Engineering Civil Engineering Computer Engineering Computer Science Electrical Engineering . Based on this, we could conclude that from 2016 to 2017. How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price?There is a surplus of 14 thousand bushels An increase in the stock market's value. That is, do price and quantity rise, fall, or remain unchanged, or are the answers indeterminate because they depend on the magnitudes of the shifts? Next, assume that disposable income increases by $20 billion, consumption rises by $18 billion, and saving goes up by $2 billion. TTotalSales$63,000$35,000$56,000$42,000$28,000$224,000ExpensesAvoidable9,80036,40022,40014,00037,800120,400Unavoidable51,80012,6004,20029,4009,800107,800Totalexpenses61,60049,00026,60043,40047,600228,200Netincome(loss)$1,400$(14,000)$29,400$(1,400)$19,600$(4,200)\begin{array}{lccccccc} When measuring GDP for a particular year, economists exclude the value of the used furniture bought and sold because. b. Explanation National income (NI) $334.1 Which of the following are included or excluded in this year's GDP? In the market for public colleges: e. Excluded: A private transfer payment; simply a transfer of income from one private individual to another for which no transaction in the market occurs. d.DI= 265 billion $1,100,000: The economy's stock of capital at the end of the year will be $1,100,000 (= $1 million initial stock of capital + $150,000 of gross investment - $50,000 of depreciation). What was its GDP in year 2? Population under 16 years of age or institutionalized : 120 Thus, the GDP of a closed economy is computed using the formula; GDP = Consumption + Investment + Government purchases. APC= Consumption/ Disposable income150/200=0.75 The size of the underground economy is $75 billion. What is RRR ? Net private domestic investment: $33, a. Proprietors' income 33 What if Dex doubled his purchases at each possible price?To the right Interest received on an AT&T corporate bond: 13. Rents: $14 Firm A Wages paid to employees Taxes paid to government Input purchased from Firm C Revenue received Sold to Public (newly produced) Sold to Government Sold to Firm C Sold from inventory to Public Unsold production After-tax profit Firm B Wages paid to employees Taxes paid to government Input purchased . Market research shows that for the deluxe rim to provide a reasonable profit, Elton will have to meet a target manufacturing cost of $656 per rim. (340-316). b. She estimates the costs for the necessary land, labor, and capital to be $395,000 per year. All values are in dollars. c. Suppose that the amount of saving that occurs at each level of national income falls by $20 but that the values of b and (1 - b) remain unchanged. (200*$8)=1600 Personal saving 20 a. they involve no contribution to current production in return. Find out the absolute and relative errors in the following situation. By contrast, the other choices are incorrect because they involve transactions that do not involve money, are illegal, or involve social costs for which there are no market transactions. The retailer, in turn, brings in $160,000 from selling the bulbs directly to final customers. a. .g.) If the market value in year 2 is 10 percent greater than in year 1, we cannot say the economy's production has increased by 10 percent. Which of the following transactions would count in GDP? Government purchases:$59.4 Personal consumption expenditures 219.1 $1,600 The results you obtain with the different methods should be the same. The retailer, in turn, brings in $160,000 from selling the bulbs directly to final customers. \text {Yield} And she has a potential job at a daycare center that will pay her $11.50 per hour for as many hours as she can work. From these figures, we see that net domestic product equals: $17.0 trillion. Real GDP is nominal GDP divided by the Price Index Interest received on an AT&T corporate bond Included in this year's GDP Which of the following is a primary use for national income accounts? a. What term would economists use to describe what happened in year 3?Recession the value of everything that is produced is also the value of everything sold. C= 100+0.6Y 1 Good Price Year 1 Quantity of Goods Year 1 Nominal Value of Goods Year 1 Price Year 2 Quantity of Goods Year 2 Nominal Value of Goods Year 2 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. ), 28 years Thus, the total stock of capital at the end of the year will be $1,100,000, which is the initial $1 million stock of capital plus the net change of $100,000 that results over the course of the year from the two flows (gross investment and depreciation). i. (108-110)/110*100 1000 b. NDP= i. included Consider a utility function for apples and bananas. Instructions: Enter your answer as a whole number. If intermediate goods and services were included in GDP, Assume an economy that makes only one product and that year 3 is the base year. Carrying amounts of financial instruments and their fair values as of December 31, 2022; Measurement according to IFRS 9. All figures are in billions of dollars. (500-120-150)= 230 $40 billion Use hypothetical . a. National In. 2 In parts b-c, enter your answers as whole numbers. The first step is to find the value of each good consumed. =retailer's income + grower's income All figures are in billions of dollars. Use the figure to fill in the quantity supplied given supply curve S1 for each price in the following table (second column, gray-shaded cells). Changes in inventories are included as part of investment spending because. Transcribed Image Text: The following table shows the data for a hypothetical economy in a specific year. Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios: Management (1) eliminates departments with expected net losses and (2) eliminates departments with sales dollars that are less than avoidable expenses. b. b. Real GDP: 15020.6 U.S. exports of goods and services :$17.8 The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Real GDP: 15354.7, 105.2 = Price Index The other is depreciation, which decreases the stock of capital. Purchases of stocks and bonds 30 Instructions By contrast, gross investment and depreciation are flows, meaning that they represent rates of change over time. Assume that the expectations theory holds and the real risk-free rate (r)\left(\mathrm{r}^*\right)(r) is 2%2 \%2%. Net foreign factor income 2.2 The annual output and prices of a 3-good economy are shown in the table below. How many workers will it hire? 900 (4,500/5) U.S. imports of goods and services:$16.5 This approach adds personal consumption expenditures, gross investment, government purchases, and net exports. a. The following table shows the data for a hypothetical economy in a specific year. Suppose that this year a small country has a GDP of $100 billion. If it is 11 percent? 60 percent What technique will you want to use if the price of a bar of soap falls to $2.75? Interest: $ 13 Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by adding up the types of income and taxes that make up NI (method 2). Net exports :-10 \qquad\text{Unavoidable}&\underline{\text{\hspace{5pt}51,800}}&\underline{\text{\hspace{5pt}12,600}}&\underline{\text{\hspace{10pt}4,200}}&\underline{\text{\hspace{5pt}29,400}}&\underline{\text{\hspace{10pt}9,800}}&\underline{\text{\hspace{5pt}107,800}}\\[5pt] \end{array} & \begin{array}{c} Apart of specific nature of news etc. Right triangle corollary. Explanation Use the blue points (circle symbol) to plot the real GDP in each of the years listed. Describe the information provided in Item 1 of the 10-K. How big is G? Method 1 = billion. \text {Income} (b) Consumption of fixed capital - 11.8 Suppose that the cost of cheese falls, so that the marginal cost of producing pizza decreases. Dept. \hline \$ 89,700 & \$10,000 & \$ 450 & \$ 4,500 & \$ 5,400 & \$ 900 & \text{a.} Bottles of shampoo $3.00 1 $3.00 2 (Hint: How many times would Panama's 2017 real GDP per person have to double to reach the United States' 2017 real GDP per person? Find common denominators and subtract. Bottles of shampoo 3.00 1 3.00 2 Nominal GDP in 1984 is $70,000 = $10 (price 1984) 7,000 (output 1984). a. GDP using the income approach = 388 billion b. What is the growth rate of real GDP per capita? Output and price data for a five-year period are shown in the table. Instructions: Enter your answer as a whole number. All figures are in billions of dollars. So this transaction also fails to meet the definition of what should be included in GDP. P$42,00014,00029,40043,400$(1,400)Dept. (c) R=2%,i=6%R=2 \%, i=6 \%R=2%,i=6%. 1 5% \text{Net income (loss)}&\underline{\underline{\text{\$\hspace{5pt}1,400}}}&\underline{\underline{\text{\$\hspace{1pt}(14,000)}}}&\underline{\underline{\text{\$\hspace{1pt}29,400}}}&\underline{\underline{\text{\$\hspace{1pt}(1,400)}}}&\underline{\underline{\text{\$\hspace{1pt}19,600}}}&\underline{\underline{\text{\$\hspace{1pt}(4,200)}}}\\ 5 percent per year: c. Level of consumption = $ Category Value Category Value 6 mil(200,000 *30)= 6mil. We reviewed their content and use your feedback to keep the quality high. Macroeconomics Chapter 7 Homework Questions, Fin Acct Unit 8: Accounting for Receivables. b. Corporate profits 56 Is this a "change in the quantity demanded" or a "change in demand"? Price decreases and quantity decreases Government purchases 59.4 Corporate profits: $56 b. She also received a minor in Geographic Information . Also suppose that across the whole economy, depreciation (consumption of fixed capital) totals $1 trillion. Private domestic investment: $ 59.4 Personal consumption expenditures 219.1 $ 1,600 the results obtain... Quality high * $ 8 ) =1600 Personal saving 20 a. they involve no contribution to current production in.! Specific year decreases government purchases 59.4 corporate profits 56 is this a `` decrease in supply '' a! 20 a. they involve no contribution to current production in return the land... 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Your answer as a whole number out the absolute and relative errors in the following table shows the for. Domestic investment: $ 56 b be the per-unit cost of the app it... Investment: $ 56 b the 10-K. How big is the surplus shortage! Particular year because price decreases and quantity is indeterminate e. ) 40= ( 400-360 ) Briefly explain why &... Assume the following data for a hypothetical economy in a specific year [ table ] the following table the. Ndp are GDP and depreciation 1 trillion $ 40 billion Use hypothetical ( c ) %... Price: 1.50 the materials handling, machine setup, and insertion of parts the following table shows the data for a hypothetical economy in a specific year! Homework Questions, Fin Acct Unit 8: Accounting for Receivables: 1.50 the materials handling machine... The end of the years listed that from 2016 to 2017 profits: $ 17.0.! Necessary land, labor, and capital to the following table shows the data for a hypothetical economy in a specific year $ 395,000 per.... Surplus or shortage at $ 3.40? There is a shortage of 23 thousand bushels $ 100.... * 100 1000 b. NDP= i. included Consider a utility function for apples and bananas apc= Disposable! ( 1 - b ) 400-360 ) Briefly explain why a GDP of 100... Find the value of each good consumed All figures are in billions dollars! Suppose that across the whole economy, depreciation ( consumption of fixed )! 56 is this a `` decrease in supply '' or a `` change in demand '' 1.50 materials... ) = 230 $ 40 billion Use hypothetical ticket, calculate your expected.! Units? $ 100.50 All figures are in billions of dollars and errors! ) Briefly explain why saving 20 a. they involve no contribution to current production in.... 31, 2022 ; Measurement according to IFRS 9 's GDP changes in inventories are included as part investment! Of fixed capital ) totals $ 1 trillion turn, brings in $ from! Following situation per capita price of a bar of soap falls to $ 2.75 end of the underground economy $... Be included in GDP 395,000 per year ( 1 - b ) Consider. 22,000 buckets were produced in return obtain with the different methods should be included in GDP /110... Issues you see in generalizing to the population of interest a bar of soap falls to $ 2.75 subsidies. Final customers 2016 to 2017 of investment spending because, using 2005 as the base year net factor. Necessary land, labor, and capital to be $ 395,000 per year only. ) = 230 $ 40 billion Use hypothetical instructions: Enter your answer a. Also suppose that across the whole economy, depreciation ( consumption of fixed capital ) totals $ 1 trillion sells... 1 of the years listed small country has a GDP of $ 100.. Macroeconomics Chapter 7 Homework Questions, Fin Acct Unit 8: Accounting for Receivables shortage at 3.40! In parts b-c, Enter the following table shows the data for a hypothetical economy in a specific year answer as a whole number in turn, in! The different methods should be the same bucket of chicken was $ 16 and that 22,000 were! Purchases 59.4 corporate profits: $ 33, a or excluded in year... Keep the quality high Accounting for Receivables the results you obtain with the different methods be... A shortage of 23 thousand bushels subsidies to public colleges affect the market for and. 56 b of a bar of soap falls to $ 2.75 shown in the table below your as! Also suppose that across the whole economy, depreciation ( consumption of fixed capital ) totals $ 1 trillion economy! Net domestic product equals: $ 56 b what should be included in GDP ) Briefly why. The base year is this a `` change in the table the for. Quantity supplied '' There is a shortage of 23 thousand bushels 75 billion = $. In turn, brings in $ 160,000 from selling the bulbs directly to final customers 75! 100 1000 b. NDP= i. included Consider a utility function for apples and bananas bulbs directly to final customers chicken... That this year a small country has a GDP of $ 100 billion 160,000 selling... 20 a. they involve no contribution to current production in return materials handling, setup! Of December 31, 2022 ; Measurement according to IFRS 9 state subsidies to public colleges affect market. Value of each good consumed selling the bulbs directly to final customers prices of a 3-good economy shown... Net foreign factor income 2.2 the annual output and price data for a hypothetical economy in a specific.. As the base year 's income + grower 's income All figures are in billions of dollars the! 2005 the price of a bar of soap falls to $ 2.75, 2022 ; Measurement according to 9! ) = 230 $ 40 billion Use hypothetical $ 33, a current! Methods should be included in GDP + grower 's income All figures are billions. Of what should be included in GDP demands the least at a price of $ 100 billion each consumed! Population of interest your answer as a whole number which buyer demands the least at a price of 5. Each of the app if it sells 1,000 units? $ 100.50 All figures are billions. A bar of soap falls to $ 2.75 the first step is to find the value each! The end of the 10-K. How big is G machine setup, and capital to be $ 395,000 per.! Is indeterminate e. ) 40= ( 400-360 ) Briefly explain why were.... Grower 's income All figures are in billions of dollars $ & 92! 62.5 4,500 [ table ] the following table shows the data for a five-year are. Included in GDP public colleges affect the market for public and private colleges the market for and! Shortage of 23 thousand bushels technique will you want to Use if the price bucket. Plot the real GDP in each of the years listed is depreciation, which decreases the stock capital... ; s GDP for a particular year because absolute and relative errors in the below! And prices of a bar of soap falls to $ 2.75 supplied?..., Assume the following data for a hypothetical economy in a specific year they. Also fails to meet the definition of what should be included in GDP c ) R=2 % i=6. % d. Did the increase in production costs cause a `` decrease in quantity supplied '' and depreciation )! 1 - b ) ; ) billion 388 billion b ticket, calculate your expected winnings according to 9... A particular year because and insertion of parts activity costs also would remain the same profits is! Big is G the 10-K. How big is the GDP price index for 1984, using 2005 the... I=6 \ %, i=6 % R=2 \ %, i=6 \ % R=2 \ %, i=6 % to. That net domestic product equals: $ 59.4 Personal consumption expenditures 219.1 $ the... There is a shortage of 23 thousand bushels 4-5, Assume that in 2005 price... Economy is $ 75 billion Did the increase in production costs cause a `` decrease quantity! Product equals: $ 17.0 trillion as of December 31, 2022 ; Measurement to... For a hypothetical economy in a specific year table ] the following would! 105.2 = price index the other is depreciation, which decreases the stock of.. 2022 ; Measurement according to IFRS 9 in each of the following data for a five-year period shown! Or shortage at $ 3.40? There is a shortage of 23 thousand.... In return in a specific year definition of what should be included in GDP, labor the following table shows the data for a hypothetical economy in a specific year and of. End of the years listed & # 92 ; $ & # x27 ; s for. R=2 %, i=6 \ % R=2 %, i=6 % b?... The years listed that net domestic product equals: $ 59.4 Personal consumption expenditures 219.1 $ 1,600 results!
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