30- Consider an economy with only two goods: bread and wine. In 2000, the typical family bought 5 loaves of bread at $1.00 per loaf and two bottles of wine for $10.00 per bottle. In 2010, bread cost $1.25 per loaf and wine cost $12.00 per bottle. The CPI for 2010 is 31-All final goods and services that make up GDP can be expressed in the form: a) GDP=C+1-G+(X + M) b) GDP=C+I+G+ c) GDP=C+I+G+ (X + M) (X-M) d) GDP=C-1+G+ (X-M) e) GDP=C+1-G-(X-M)
Q: A fried chicken franchise finds that the demand equation for its new roast chicken product, "Roasted…
A: Demand for Roasted Rooster is given by Here q denotes the number of quarter chicken servings and p…
Q: Which of the following are relevant costs when a firm attempts to decide on the best course of…
A: Cost refers to the monetary or resource value expended to obtain goods, services, or assets. It is…
Q: Refer to Figure 8-12. Which of the following combinations will create the largest deadweight loss…
A: Deadweight loss is the scenario where the market equilibrium is disrupted by tax implication…
Q: Assume 1.5 tons of input (i.e., rough lumber) is required to produce 1 ton of custom cabinetry.…
A: Cabinet manufacturing is a weight gaining process. This is because 1.5 tons of input is required to…
Q: For an APR of 13% per year, if the interest is compounded monthly, determine the nominal rate per…
A: APR = 10% / yearThe nominal rate does not consider any compounding,Therefore the Nominal Interest…
Q: The total cost of producing a certain good is given by TC = 30 In (q +300) +150. Find the marginal…
A: In economic analysis, cost functions represent the relationship between the cost of producing goods…
Q: . If there is a recession, the Fed would most likely encourage banks to provide loans by: O buying…
A: Recession is described as the period in the economy in which the level of output falls. In such a…
Q: A firm has the following total-cost and demand functions: C=Q³-7Q² +111Q+50 Q = 100 - P (a) Does the…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: The profit function is the same as in Question 40 and 41. Profit =200L+100K-10L^2-20K^2+20KL. After…
A: Profit is a financial metric that represents the difference between the revenue earned by a business…
Q: For Henry, eggs are inferior but not Giffen. On Henry's indifference curve di gram, illustrate the…
A: Inferior goods are those goods whose demand decreases with the increase in the income of the…
Q: Assume you graduate from college with $26000 in student loans. If your interest rate is fixed at…
A: Compounding refers to the process of getting interest on the principal amount as well as the…
Q: Using the data in the table, integrate the expected relationship of the behavior of inflation with…
A: Macroeconomic monitoring will continue to be important since it dictates the economy's eventual…
Q: The tragedy of the commons occurs for goods that are: a. rival and non-excludable. b. rival and…
A: Goods allude to tangible, physical items or things that can be bought or sold. They are objects that…
Q: Consider the following abstract from the following research paper “Do Social Connections Reduce…
A: Economic analysis refers to the systematic approach used to examine how scarce resources are…
Q: Which one (1) of the following is NOT a requirement for registration if an individual wishes to be…
A: The query you asked has to do with the qualifications and prerequisites for insurance broker…
Q: emotely located air sampling station can be powered by solar cells or by running an electric line to…
A: The initial investment sum is what is meant by the annual worth, but the final sum, which includes…
Q: The graph below illustrates the private costs and benefits of producing Trisenian, a new miracle…
A: Equilibrium refers to the point where demand curve intersects supply curve.
Q: Consumer C has utility function u(a, b) = 3a + 10b. If we observe that Pb = 20 and a* > 0, what is…
A: Utility function: The price of good b is 20.The utility function represents that good a and good b…
Q: What will happen to the net exports of Mexico when there is an increase in income in the United…
A: When examining the relationship between the income levels of the United States and the net exports…
Q: Number of Factories 1 2 3 Q = 50 220 310 400 Q=100 140 190 240 (Dollars per bike) Q = 150 Q = 200…
A: The amount incurred on producing each unit of a commodity, in this case a bike, is known as the…
Q: Simone owns a plot of land in the desert that isn't worth much. One day, a giant meteor falls on her…
A: Price discrimination is a pricing strategy used by firms to charge different prices to different…
Q: Please discuss the pros and cons of the minimum wage
A: The minimum wage is a policy that sets a legal floor on the hourly wage rate that employers can pay…
Q: If consumers increase their preference for foreign goods and services, aggregate expenditure will…
A: Aggregate demand is the sum of consumption, investment, government spending and net export. This…
Q: Suppose that actual output is $120 billion and potential (full-employment) output is $156 billion.…
A: The output gap is a measure of the difference between actual output, the level of goods and services…
Q: Suppose the current level of output is $10,000 and use the approximate methods learned in class. If…
A: Current level of output = $10,000Elasticity of output w.r.t capital = 0.3Elasticity of output w.r.t…
Q: Suppose the US total output is represented by the standard Cobb-Douglas production function with…
A: The Cobb-Douglas production function is a generally involved mathematical portrayal in economics to…
Q: Dreamliners per period 180 16 12 8 A 4 O 18 small jets O 6 small jets O8 dreamliners 0 4 8 B 12…
A: PPF is the production possibility frontier. PPF shows the production possibility of two goods in an…
Q: The question is based on the following information: Item R million
A: A budget is a financial arrangement for a characterized period, frequently one year. It might…
Q: Tonya has been working as a tutor for $300 a semester. The college raised the wage it pays tutors to…
A: Producer surplus is the area below the price and above the supply curve. This means higher the…
Q: Babe’s Bats (BB) sells baseball bats for children around the world. The firm faces a demand curve of…
A: Demand equation: Q=10-0.4P where Q is measured in thousands of bats and P is dollars per bat.…
Q: Show the effect of the following event on the market for gas-powered small cars: The price of…
A: The demand curve shows a negative relationship between the price of a product and the quantity…
Q: Which of these is not an example of a sunk cost that is subject to poor economic decision making? A.…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A defined Select one: plan offers a guaranteed level of retirement income. A. non-contributory B.…
A: Defined benefit plan: A defined benefit plan is a retirement plan in which the employer promises to…
Q: Figure 3-5 These graphs illustrate the production possibilities available for dancing shoes to Fred…
A: PPF is the production possibility frontier. PPF shows the production possibility of two goods in an…
Q: Yogurt The following schedule illustrates supply and demand in the organic yogurt market Price/quart…
A: The supply curve shows the quantity supplied by sellers at different prices and the demand curve…
Q: A small town has two bakeries, Acme and Fat Apple. Acme's marginal cost to make a loaf of bread is…
A: Acme's marginal cost to make a loaf of bread is $1 and Fat Apple's marginal cost is $2Acme's demand…
Q: a) Suppose price of x₁ falls to Rs. 3, will its quantity demanded increase? Why? 5) Now suppose P₂…
A: Given:a) Suppose the price of x1 falls to Rs. 3, will its quantity demanded increase?…
Q: Suppose that Ms. Thomson is currently exhausting her money income by purchasing 10 units of A and 8…
A: The concept of diminishing marginal utility refers to the observation that as a person consumes more…
Q: Consider the following extensive-form game. (1) U D A B A B 6,6 X Y X Y P 3,8 8, 1 1,2 -2,1 5,5 -0,0…
A: A normal-form game is a mathematical representation of a strategic interaction between two or more…
Q: Based on the following graph, identify the loss in consumer surplus when price changes from 12 to…
A: Willingness to pay (WTP) is the maximum price that the consumers are willing to pay for the good.…
Q: 10. According to Keynes, which of the following should occur because of a decrease in government…
A: Keynesian economics, named after the British economist John Maynard Keynes, is an economic…
Q: Gross Private Domestic Investment Exports of the United States Disposable Income Personal Saving…
A: GDP is the gross domestic product.GDP is defined as the market value of all the final goods and…
Q: There would be a potential market failure if a good was a. nonexcludable, but not if it was both…
A: Public Goods:Public goods are goods that are both nonrivalous and non- exclude able. Nonrivalous…
Q: Given the two functions below: y=10e-0.5q and y=7ln5q Draw the two functions for the interval…
A: The equilibrium point, also known as the market equilibrium, is a fundamental concept in economics…
Q: A subdivision developer must construct a sewage treatment plant and deposit sufficient money in a…
A: Perpetual payment (PP)=$5000 per yearTotal time of duration for replacement (T)=40 yearsCost of…
Q: Consider a small open economy, Suppose the market for corn in Banana Republic is competitive. The…
A: A perfectly competitive market is a theoretical construct in economics characterized by a large…
Q: In my view, I would have to say that human beings only have moral agency and moral obligations in…
A: Economic analysis refers to the systematic approach used to examine how scarce resources are…
Q: Explain and discuss the significance of the Efficiency Wage Theory and how it may result in…
A: A wage is a payment usually of money for labor or services usually according to contract and on an…
Q: After reading Chapter 6, I favor the broad view because it promotes long-term, sustainable and…
A: Corporate social responsibility (CSR) is the idea that businesses have a responsibility to society…
Q: Suppose that at market equilibrium, the marginal private cost is $29 and the marginal social cost is…
A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Suppose that the nominal GDP in 2017 was $3,968 (in thousands) and 2018 is the base year. Nowthe nominal GDP for years 2018 and 2019 will be the sum of the nominal GDP of the previousyear and the cost-of-living adjustment (COLA.) for the current year. [COLAs per year are equalto the percentage increase of the rate of inflation.] When we calculate the nominal GDP this way,what is this economy’s real GDP each year?Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100 units of maple synup are sold at $8 per unit. In 2009, the base year, the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit. For 2010, A. nominal GDPis $2000, real GDP is $1800, and the GDP deflator is 1ll. B. nominal GDP is $1800, real GDP is $2000, and the GDP deflator is Il1.I. C. nominal GDPIS $1800, real GDP is $2000, and the GDP deflator is 90. D. nominal GDP is $2000, real GDP is $1800, and the GDP deflator is nLast year, Jane spent all of her income to purchase 200 units of corn at $5 per unit. This year, she spent all of her income to purchase 180 units of corn at $6 per unit. a)Jane's nominal income and real income decreased this year. b)Jane's nominal income decreased this year, but her real income increased. c)Jane's nominal income and real income increased this year. d)Jane's nominal income increased this year, but her real income decreased.
- The prices and quantities in 2010 and 2015 were as follows. 2010: Good 1 $15/15 items; Good 2 $5/10 items. 2015: Good 1 $10/20 items; Good 2 $15/10 items. Compute the 2015 GDP deflator using 2010 as the base year. 1.32 0.375 127.3% O 32%Suppose an economy produces only burgers and bags of fries. In 2010, 4000 burgers are sold at $3 each and 6000 bags of fries are sold at $1.50 each. In 2008, the base year, burgers sold for $2.50 each and bags of fries sold for $2 each. a. nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 95.45. b. nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 104.77. c. nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 95.45. d. nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 104.77.3. Consider an economy that only produces mittens. In Year 1, 4000 pairs of mittens are produced and the price is $5 per pair. In the Year 2, 5000 pairs of mittens are produced and the price is $7 per pair. In Year 3, 7000 pair of mittens are produced and the price is $9 per pair. Use Year 1 as the base year. What is the nominal GDP for each year? What is the real GDP for each year? What is the GDP deflator for each year? What is the percentage growth rate of real GDP from year 2 to year 3? What is the inflation rate (as measured by the GDP deflator) from year 2 to year 3?
- Suppose an economy produces two products: meat pies and MP3S. In 2011, 20 meat pies are sold at $5 each, and eight MP3S are sold at $50 each. In 2010, the base year, the price of meat pies was $10 each, and the price of MP3S was $75 each. Therefore: A. the real 2011 GDP is $800, and the GDP deflator is 62.5 B. the real 2011 GDP is $800, and the GDP deflator is 160 C. the real 2011 GDP is $500, and the GDP deflator is 62.5 D. the real 2011 GDP is $500, and the GDP deflator is 160Nominal gross domestic product for the United States was $7,661.6 billion in 1996 and$8,110.9 billion in 1997. The GDP deflator was 109.5 in 1996 and 111.6 in 1997. Given theabove data, complete the following questions:a. What was the 1997 real GDP expressed in 1996 prices?b. What were the 1996 and 1997 GDPs expressed in base-year prices?c. What was the percent change in the nominal GDP between 1996 and 1997?d. What was the percent change in real GDP between 1996 and 1997?e. What was inflation between 1996 and 1997?Suppose an economy has two years worth of data, years 1 and 2. Sup- pose there are also two goods, bread and corn. Suppose in year one fifty units of corn are sold at a price of 1 $ and 20 units of bread are sold at a price of 2 $. Suppose in year two, 60 units of corn are sold at a price of 1.5 $ and 80 units of bread are sold at a price of 2.05 $. Compute nominal GDP in both periods. Compute real GDP under both definitions of a base year. Compute also a chain weighted real GDP series. For all three measures, compute the GDP deflator. In addition, compute a CPI’s for each base year assuming total consump- tion in the base year forms the basket of goods for measurement. What are the implications for these measures for the amount of inflation in this economy. [Note, you should have five candidate measures]. What about the amount of economic growth? Suppose that corn in year 2 is twice as valuable as corn in year 1 to consumers in terms of their enjoyment from its consumption (or in…
- . Consider an economy that produces and consumes bread and automobiles. In the table below are data for two different years: Year 2010 Year 2025 Price of an automobile $50,000 $60,000 Price of a loaf of bread $10 $20 Number of automobiles produced 100 120 Number of loaves of bread produced 500,000 400,000 Using the year 2010 as the base year, compute the following: nominal GDP, implicit price deflator and the CPIConsider an economy that produces only three types of fruits: apples, oranges and bananas. In the base year the production and price were as follows: Fruits Quantity (kg) Price ($) Apples 3000 2 Oranges 6000 3 Bananas 8000 4 In the current year the production and price were as follows: Fruits Quantity (kg) Price ($) Apples 4000 3 Oranges 14000 2 Bananas 32000 5 Find Nominal GDP in base and current years. What is the percentage change during this period? Find Real GDP in base and current years. What is the percentage change during this period? Find the GDP deflator for base and current years. What is the inflation during this period 2;.An economy has the production function Y = 0.2(K + N) In the current period K = 100 and N = 100 Graph the relationship between output and capital, holding labour constant at its current value. What is the MPK? Does the MPK diminish? Graph the relationship between…1) The table below gives the price and consumption (usage/sales) for two products x and y for four years. Using year 2000 as the base year calculate for each year, the a) Basic expenditure index Year b) Laspeyers price index, and c) Paasche price index Quantity x, q, Price of y, p, Price of Quantity y, q, х, р. 2000 R4 5 R3 3 2001 R5 R4 6. 2002 R6 4 R5 4 2003 R6 4 R7 4