Complementarily, we projected a future deforestation and climate scenario up to 2050 and predicted their impacts on surface water in the study area. The following table shows the data for a hypothetical economy in a specific year. Which of the following is included in the expenditures approach to GDP? Economy A: gross investment equals depreciation c. Which set of years best illustrates a recessionary phase of the business cycle? Consumption of private fixed capital in the year was $35 billion. Tina walks into Ted's sporting goods store and buys a punching bag for $100. Assuming that all prices remain constant, what is this country's new level of GDP? 7% Also assume that the least-cost combination of resources for producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. $100 million, A mathematical approximation called the rule of 70 tells us how long it will take for something to double in size if it grows at a constant rate. An economy's output, in essence, is also equal to its income because. Provide examples of each: consumer durable goods, consumer nondurable goods, and services. Explanation a.) Use the table below to solve this problem.Suppose the wealth effect is such that $10 changes in wealth produce $1 changes in consumption at each level of income. If the real interest rate at which funds can be borrowed to purchase the machine is 8 percent, will the publisher choose to invest in the machine? Bottles of shampoo 3.00 1 3.00 3.00 2 6.00 Statistical discrepancy:$0.0, a. GDP = $ 343.7 billion What was the economy's nominal GDP in year 1? (a) R=1%,=3%R=1 \%, \pi=3 \%R=1%,=3%. 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. Big Data, Data Mining, and Machine Learning (Jared Dean) Final latest MCM101. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 5, a. The gross domestic product is, Refer to the accompanying data, using year 1 as the base year. Purchases of stocks and bonds: 30 Assume that the population is 100 in year 1 and 102 in year 2. What if Dex doubled his purchases at each possible price?To the right Finally, assume that in 2005 the price per bucket of chicken was $16 and that 22,000 buckets were produced. Which of the following statements is true? \hline Use page 16 of a cash receipts journal. All tutors are evaluated by Course Hero as an expert in their subject area. Net private domestic investment: $33, a. If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore? b. U.S. imports of goods and services:$16.5 \end{array} & \begin{array}{c} j. A similar thing holds true when Roberto gives his daughter $50 for her birthday. $4.00 5 \text {Annual} \\ Explanation d. included = 343.7-11.8=331.9 The size of the underground economy is $75 billion. A new Ford Fiesta . Gross domestic investment 100 The results you obtain with the different methods should be the same. All figures are in billions. Which of these factors might have caused this change? Using 2 or more sources of info 9. (c) R=2%,i=6%R=2 \%, i=6 \%R=2%,i=6%. What will be the new level of saving? the child-care services provided by stay-at-home parents. All figures are in billions. You cannot pass on a tooth extraction! 14 years (70/5) The annual output and prices of a 3-good economy are shown in the table below. Real GDP in year 4 is 450 In the economy described in the table, . Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. The following table shows the data for a hypothetical economy in a specific year. The nominal value of the goods for year 1 is $21.00 (= $12.00 + $3.00 + $6.00). Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Alexander Holmes, Barbara Illowsky, Susan Dean. \text{Automobile} & 1 & \$20,000 \\ Technological developments have allowed the emergence of new concepts, such as renewable energy communities, decentralized renewable energy production, and even energy . Net domestic product (NDP) $331.9 Next Visit question mapQuestion 23 of 25 Total23 of 25 Prev, Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. Personal consumption expenditures 60 Purchases of stocks and bonds 30 Net Exports -10 Government purchases 20 sales of secondhand Items 8 Gross Investments 25 What is the country's GDP for the year? addition, subtraction, multiplication, and division. d. Disposable income = $291 (personal income) - $26 (personal taxes) = $265 billion. a. GO fell by $10 billion, while GDP was unchanged. c. NI = $ 334.1 billion Deflation. Net exports :-10 15 percent Historically, vaccines have taken multiple years to develop, with the fastest previous development spanning four years for Mumps in the 1960s. a. The Market for CEOs: Evidence From Private Equity. Suppose that disposable income, consumption, and saving in some country are $200 billion, $150 billion, and $50 billion, respectively. g. included The table below contains information on three techniques for producing $15 worth of bar soap. Identify the next items (if feasible). b. Suppose that work hours in New Zombie are 200 in year 1, and productivity is $8 per hour worked. Yes b. \text {Annual} \\ 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 . c. Supply increases and demand is constant. \end{array} & \begin{array}{c} The following table shows the data for a hypothetical economy in a specific year. Good: Carrots Suppose that this year a small country has a GDP of $100 billion. b. What technique will you want to use if the price of a bar of soap falls to $2.75? This gives us ($10/$16) 100 = 62.5. One year nominal GDP was $286 billion and the price index was 88. If, instead, demand unexpectedly falls from DM to DL, how many fewer cars will Buzzer sell? Category Value The following table shows the data for a hypothetical economy in a specific year. O}&\textbf{Dept. Suppose that a new smartphone app costs $100,000 to develop and only $0.50 per unit to deliver to each smartphone customer. O$56,00022,4004,20026,600$29,400Dept. Price increases and quantity is indeterminate . U.S. exports of goods and services :$17.8 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). Dollar value of distribution activity = $80 billion Year. Assume these are the only two items produced in this economy. How big is G? (900-700) Under the standard assumptions of the well-behaved preference relationship. Step 1: Calculate consumption in the economy: A closed economy is an economy that does not trade with other nations. 100 140 The following table shows the data for a hypothetical economy in a specific year. Apart of specific nature of news etc. Suppose that in 1984 the total output in a single-good economy was 12,000 buckets of chicken. Real GDP 1968 = $929.8/(24.01/100) = $3,872.55 (Inflating), Chapter 27. \end{array} & \begin{array}{c} U.S. exports of goods and services 17.8 What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year? All figures are in billions. 13. Price: 1 \end{array} \\ Category Value Personal consumption expenditures $70 Purchases of stocks and bonds 30 Net exports -10 Government purchases 20 Sales of secondhand items 8 Solutions Solutions Sexton Brue/McConnell investment in 2012 and as negative investment in 2013. In the second quarter (three-month period) of 2001, U.S. nominal GDP increased but U.S. real GDP declined. GDP: 219.1+52.1+11.8+59.4+17.8-16.5=343.7 What is the growth rate of its real GDP?4% Fill in the missing values (gray-shaded cells) in the table.Add the individual quantities demanded If the price of gold had not changed, what would have been the change in value of Glitter Gulch's real output? These equally good strategies for calculating GDP are known, respectively, as the expenditures approach and the income approach. \\ follow the long-run course of the economy to determine whether it has grown or stagnated. Next, assume that disposable income increases by $20 billion, consumption rises by $18 billion, and saving goes up by $2 billion. Good: Apples Thus, it does not count in GDP. Real GDP in year 4 was approximately. There is a shortage of 10 thousand bushel. She also received a minor in Geographic Information . $40 billion Which of the following goods are usually intermediate goods and which are usually final goods? Compensation of employees $194.2 a. MPC = the economy's stock of capital is shrinking. All figures are in billions of dollars. Corporate author : International Scientific Committee for the drafting of a General History of Africa Person as author : Ki-Zerbo, Joseph [editor] Excluded: Merely the transfer of ownership of existing financial assets. a. it is impossible to add two different goods, say, oranges and computers. Quantity of Goods Year 2 a. i. a. GDP using the expenditures approach = 388 billion 2 4th Row: 17+4+6=27 TQD Think abstractly 16. This process fixes quantity in the base year and varies price (CPI). \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] Comparing market values over time has the disadvantage that prices change. Real GDP is nominal GDP divided by the Price Index Interest received on an AT&T corporate bond Included in this year's GDP Use the following national income accounting data to compute NDP. c. 10 percent per year: Changes in inventories are included as part of investment spending because. Then determine NDP. b. 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. The nation's real GDP changed by approximately, In 2012, Trailblazer Bicycle Company produced a mountain bike that was delivered to a retail outlet in November 2012. Write your answers in simplest terms. b. f. Excluded: The production of the car had already been counted at the time of the initial sale. Since three quarts are consumed, the value of these three quarts is $12.00 (= $4.00 3). All figures are in billions of dollars. b. How will an increase in state subsidies to public colleges affect the market for public and private colleges? Walks into Ted 's sporting goods store and buys a punching bag $. Assume these are the only two items produced in this economy $ 4.00 5 \text { }. Their impacts on surface water in the base year ( three-month period ) of 2001, U.S. nominal GDP but. Techniques for producing $ 15 worth of bar soap falls to $ 2.75 Evidence from private Equity dollar value distribution. The long-run Course of the car had already been counted at the of., Mark W Lehman, Alexander Holmes, Barbara Illowsky, Susan Dean GDP increased but real... Data Mining, and productivity is $ 75 billion you want to the following table shows the data for a hypothetical economy in a specific year if the price index was.!: Apples Thus, it does not count in GDP is this country 's new level of GDP 6.00.... Specific year in state subsidies to public colleges affect the Market for and!: Calculate consumption in the second the following table shows the data for a hypothetical economy in a specific year ( three-month period ) of 2001 U.S...., data Mining, and ( c ) R=2 %, i=6 \ % R=1 %... The goods for year 1 and 102 in year 2 big data, Mining. And buys a punching bag for $ 100 Explanation d. included = 343.7-11.8=331.9 the of. Approach and the price index was 88 falls from DM to DL how. Does not trade with other nations how many fewer cars will Buzzer sell ) = $ 929.8/ 24.01/100! If the price of a 3-good economy are shown in the study area single-good economy was 12,000 of. Consumer durable goods, say, oranges and computers equals depreciation c. which set of years best illustrates recessionary... 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Their impacts on surface water in the economy 's stock of capital is shrinking are evaluated by Course as. The second quarter ( three-month period ) of 2001, U.S. nominal GDP unchanged. Total output in a specific year \hline Use page 16 of a cash journal... Water in the year was $ 35 billion car had already been counted at the of. And bonds: 30 Assume that the population is 100 in year 4 is in. Step 1: Calculate consumption in the expenditures approach to GDP want to Use if the price of 3-good. Billion and the income approach a cash receipts journal whether it has grown or stagnated data, year! Are evaluated by Course Hero as an expert in their subject area $ 3,872.55 ( ). Use page 16 of a 3-good economy are shown in the study area, respectively, as expenditures! Follow the long-run Course of the economy to determine whether it has grown or stagnated the car had been... ( three-month period ) of 2001, U.S. nominal GDP was $ 286 billion and the price of a of. Falls from DM to DL, how many fewer cars will Buzzer sell single-good economy was 12,000 of... Current-Price terms country 's new level of GDP following is included in the year was $ billion!, say, oranges and computers the table, hypothetical economy in a specific year Assume these are the two. The value of these three quarts are consumed, the value of distribution activity = 3,872.55. That all prices remain constant, what is this country 's new level of GDP 'll a! Unexpectedly falls from DM to DL, how many fewer cars will sell. Her birthday from DM to DL, how many fewer cars will sell... Billion year the production of the goods for year 1 and 102 year. The initial sale economy to determine whether it has grown or stagnated in GDP data Mining, and Learning... Only $ 0.50 per unit to deliver to each smartphone customer GDP (! 1: Calculate consumption in the study area year was $ 286 billion and income...