$10,$20 b. Real GDP is GDP in a given year Base Year 2011 2011 Quantity Price Quantity $50 100 100 50 12 Product Quantity Price Textbooks 90 $65 Hamburgers 75 2.25 Shirts 50 30 25 Cotton 100 0.80 0.60 0.70 When nominal GDP increases, real GDP falls. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Profits that are reinvested in a firm rather than paid to the firm's owners are called billion What can be said about real average hourly earnings and nominal average hourly earnings between 2008 and 2010? Intended to strengthen the reliability of corporate financial reports. (You may be able to find it on the web by typing the author's name and a few words from the title quarts of olive oil. Using the information in the above table, nominal GDP for this simple economy equals $8,750 C) upper management $17.00 in the United States and social insurance programs in other countries increase the unemployment rate? the true degree of unemployment. Disposable personal income (DPI)equals $9,580 which he explained how he and his wife managed to spend their Consider the following table: An economy produces and consumes four goods namely milo, rice, 2010 the labor force oarticipation rate Intermediate good If wages are increasing slower than the average price of goods and services, purchasing power falls. Economics questions and answers Consider a simple economy that produces two goods: stickers and paper plates. 2010 billion Refer to Table 8-3. , bread and sobolo. Debts of $3800.00 due three months from now and $3600.00 due It is based on company payroll and not on unverifiable answers. 2010, the CPI was around 225. Nousiainen, Southwest Finland, Finland . The number of people employed = 71 Assume one $13 comma 295 f. What you will advise the bank CEO and shareholders. the United States Calculate the inflation rate between 2018 and . Refer to Table 8-20. Table I: Prices and quantities of milo, rice, bread and another two months due to technological change typewriter workers lose jobs and must retrain to find new jobs in other industries, Briefly explain whether you agree or disagree with the following statement: $50,000 The way in which a corporation is structured and the effect that structure has on the corporation's behavior. C) the most The annual growth rate of real GDP in 20174 is _____%. . The following table shows the prices and quantities of the goods over a three-year period. \text{Total stockholders' equity}&\underline{\underline{\$580,000}} C) it may be possible for nominal GDP to increase. Suppose an economy has an inflation rate of 3.8 2019. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households. Investment expenditures - 200 A) boards-of-directors can tie the salaries of top management to the profitability of the firm. of the cotton is used in the production of shirts. Latex being collected from a tapped rubber tree. Breads Billions of Dollars D . 10 . 16 $10 To reduce the principal-agent problem, The following table shows the prices and quantities of the goods over a three-year period. Enter response as a percentage rounded to 2 decimal places. D) the value of final goods and services produced within the United States, by United States residents. Further, suppose the nominal interest rate on bonds is 7 The graph to the right shows the supply and demand for beef in the United States, under the assumption that the United States can import as much as it wants at the world price of beef without causing the world price of beef to increase. The purchase of French The value of the aluminum QUESTION 1 (1,500 Looking at GDP data from the United States from 2001 to the present, what would be true of the relationship between nominal GDP and real GDP workers who have stopped looking for work because they believe there are no jobs for them. people to hide the income they earn, the measured GDP than most people expected. \end{array} bread and sobolo. deflator for GDP, and a fixed-weight price index such as the consumption of beef when its price increases, while holding the The nominal percentage increase in your wage is 10.0 5 Working-age population = 115 Indicate whether the following statement is true or false and why. Further, assume that all Shoes B) bondholders Real GDP per capita statistics for each year: nominal GDP, real GDP, the implicit price The labor force participation rate for this simple economy equals, Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60 have full-time employment; 20 have part-time employment; 20 do not have employment, but are actively looking for employment; and 10 would like employment but do not have employment and are not actively looking for employment. . Gross national product, GNP, of the United States is the market value of all final goods and services. A) no G = $2 trillion A) If nominal GDP increases from one year to the next, we know that production of goods and services has risen. (bread, cheese, and pizza), each (1) 3 - Auto dealer - Consumer - 25,000 Assume all of the coffee beans are used in the production of the coffee drinks. Which of the following statements is true? The value added by the automobile dealer equals, Stage of Production - Seller - Buyer - Price , approach to calculating GDP. Transfer payments 80 100 half of the tomatoes are used in making the catsup and the other A) adjusted only for anticipated inflation. Business Economics QUESTION 7 Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years? 50 2018 2011 , D) indirect finance in a secondary market. in the Table I in Q.1 decides that the basket of goods in this C. A batch of T-shirts going from a producer in China to a retailer in 13 music player. Read the article on institutions by Mancur Olson, cited in You agree to lend $1,000 for one year at a nominal interest rate of 10%. 1084, % change in Real GDP between 2017 and 2018 = (786.5 - Hamburgers - 200 - 2.00 - 2.50 The opportunity cost of producing one more quart of olive oil in Italy is 2.00 Real GDP per capita In this year, the nominal value of GDP in this economy is $494,210.00 Question 1 [20 marks] Sometimes, however, governments use these requirements to shield domestic firms from foreign competition. Suppose the United States and South Korea D) only federal. C) indirect finance in a primary market. There is a small place that makes pizza produces three goods Production from a U.S. firm that operates in Mexico, The largest component of gross domestic income is. . Which of the following transactions represents the purchase of a final good? Given the following information, calculate the rate of increase in the price level from 2015 to 2016. A) government agencies have difficulty measuring nominal and real GDP. B) Sarbanes-Oxley Act. C) decreases; falls in the secondary market Year 2000 basket of goods bought by a typical consumer. (Enter your response rounded to two decimal places.) $11 comma 519 1 - Steel mill - Auto manufacturer - $10,000 If the base year is the year 2009, then real GDP for 2016 equals $ _____. (Nominal GDP) for 2017. (Enter your response rounded to the nearest whole number.) . B) The unemployment rate will rise. Quantity. (Round your answer to one decimal place.) Using the information in the above table, nominal GDP for this simple economy equals. Quantity 140 210 2019 4. Using the information in the above table, nominal GDP for this simple economy equals A) 3,090 units. LOADING Consider a simple economy that produces two goods: beers and paper plates. (Note An inflation rate of 5% between 2015 and 2016 would be implied by a change in the GDP deflator from ________ in 2015 to ________ in 2016. However, countries rarely specialize completely. As illustrated in the diagram to the right, when a nation moves from autarky to free trade, economic surplus increases by the areas represented by. D) Federal National Mortgage Act. %. Generally with bond ratings, the ________ the rating, the lower the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default. $18.00 A consumer consumes beef and other goods (beef is a normal GHC8.00 's unemployment status? Determine the purchasing power of the Ghana cedi in 2019 and The highest-valued alternative that must be given up to engage in an activity. (Related to Solved Problem # 1) Suppose that simple economy produces only the following goods and services; shoes, hamburgers, shirts and cotton. How are intermediate goods treated in the calculation of GDP? They decrease the opportunity cost of job search. Round answer to the nearest penny. Suppose that a simple economy produces only four goods and (20). LOADING The output of Mexican citizens who work in Texas would be included in the. California who needs to stock the merchandise on shelves next Explain whether you agree or disagree with the following statement: B) $6, 400. A) direct finance in a primary market. pts) 2. Which of the following are likely to increase the measured level of GDP 40 Nominal Average Hourly Earnings new products' prices often decrease after their initial introduction, and the CPI is adjusted infrequently and overestimates the cost to consumers. Real GDP If there are 208 resumes within a 150-mile radius, what is the average cost to the employer for looking at each resume? Most economists believe that the biases in the consumer price index cause the CPI to overstate the true inflation rate by about. $60000 consumer. (Enter your responses as whole numbers. D) measuring real GDP is relatively easy, but measuring nominal GDP is difficult. 2015 - 10 - 105 Your father earned $34,000 per year in 1984. A) The level of unemployment will rise, but the percentage of the labor force unemployed will not change. answers within Suppose the United States and Japan produce only cell phones and digital music players, like Apple's iPod. consumes breads and automobiles. B) the total value of outstanding shares of stock. The CFO argued to issue bonds to finance the rest of$35,000,000. GDP does not include household production or production from the underground economy. Question 2 The Ministry of Statistics and Programme Implementation (MoSPI) released economic growth data for the third quarter (October to December) of the current financial year (2022-23 or FY23). In August 2013, the working-age population of the United States was 245.9 million. Exports - 100 Nov 2022 - Present 4 months. 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