Answered: A B C D below PPF1. below or on PPF1.…

A B C D below PPF1. below or on PPF1. on PPF2. above (beyond) PPF2. Figure 2-3 Capital Goods (thousands of units) Consumer Goods (thousands of units)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to the diagram to answer the following: a. The movement from point A to point B represents: b. The movement from point B to point C represents: c. The movement from point A to point C represents Real GDP per hour Worked Y/L ($, 000) 1,000 900- 800- 700- 600- 500- 400 200- 100- Aggregate Production 0 ljuds 300-midifi E Tommyformemberit A 8 D 20 40 00 80 Capital per hour worked K/L (5,000) 100 O Q
The following is production data: Orange Juice (Quantity) 600 610 620 Year Waffles Waffles (Quantity) (Price) 2010 100 $3 2011 120 $3.20 2012 150 $3.50 Orange Juice (Price) $1 $2 $3 Toaster Ovens (Quantity) 280 300 300 Toaster Ovens (Price) $22 $25 $28 The above, like I said, is production data. Consumption data is as follows: the average citizen consumes 80 waffles, 20 units of orange juice and 10 toaster ovens. 2010 is the base year for all calculations. Carefully following all directions for entering your answer, tell me the price/cost of the market basket for 2012.
7.2 Draw a circular flow diagram showing the flow of factors of production and goods and services between households, businesses and the government.
Let's put dollar amounts on the flows in the circular flow diagram below. RESOURCE MARKET Costs Resources BUSINESSES buy resources -sell products and Revenue Households sell -Businesses buy PRODUCT MARKET -Businesses sell -Households buy billion oney Income (wages rents Labor, and capital Deurial abay Interest, profita entrepre HONSEHOLDS -Presources .buy products Goods and ds and services Consumption Instructions: Enter your answers as a whole number. Suppose that businesses buy a total of $190 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $96 billion in wages, $28 billion in rent, and $38 billion in interest, how much are households paid for providing entrepreneurial ability? billion b. If households spend $100 billion on goods and $90 billion on services, how much in revenues do businesses receive in the product market?
Households play a role in the circular flow of goods by: A. providing natural resources to businesses.B. designing and producing new goods.C. selling goods that companies produce.D. purchasing goods at product markets.
Homework (Ch 02) The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Production purchase in product markets. Based on this model, firms earn revenue when Suppose Lucia earns $550 per week working as a corporate attorney for Rowan and Martin Associates. She uses $10 to buy a box of aspirin at Pillmart F11 F12 F7 F10 F8 F9 26 2 Fn Lock
a. Consider an economy which produces and sells, among a host of other things, 100 million T‑shirts a year. The average T‑shirt begins life when a farmer plants seeds she put away last year, waters them, and harvests the cotton, then sells the cotton to a mill for $0.75, which sells the fabric to a T‑shirt factory for $1.50, which sells its T‑shirts to a wholesaler for $5, who sells it to Nordstrom for $10, which finally sells it to you for $17. Determine the impact of T‑shirts on annual GDP by calculating the value added of the entire production process. b. Now, calculate the amount spent on T‑shirts in a year if 100 million T‑shirts are sold, each for $17. How does this compare to the amount calculated through the value‑added method?
In the circular-flow diagram, O firms are sellers in the resource market and the product market. O firms are buyers in the product market. O spending on goods and services flows from firms to households. O households are sellers in the resource market.
1. Consider a simple example economy where there are three companies. Gelato Inc. is an Italian company that produces ice cream; it is located in St. Louis but owned by an Italian chemist who sends from time to time secret formulas for new flavors. Milky Way is a milk producer in the St. Louis area. Finally, Sweetyou is a sugar producer, also located in St. Louis. In 2019, Gelato Inc. produced and sold to consumers $500 worth of ice cream, using $50 of sugar and $100 of milk. It also paid $150 in wages and $50 in taxes. Milky Way produced $200 worth of milk. It sold $100 to Gelato Inc. and $100 to the consumers. It paid $100 in wages, $20 in interests on a previous loan, and $30 in taxes. Sweetyou produced $200 worth of sugar, of which $50 was sold to Gelato Inc., $100 was exported to France, and the remaining was unsold. Sweetyou paid wages for $100 and $40 in taxes. The government in this St. Louis based economy provides public services for which it employs labor and basic income for…
The table below shows economic activity for a tiny country. Using the expenditure approach determine the following. Activity Total Value (dollars) Families buy groceries Electronics company sells HD projectors to households Personal trainer gives a Zumba class Custard stand sells pistachio ice cream Police department buys new cars Mayor leads creation of a new budget for education Elevator-construction company builds a new factory Local businessperson purchases corn from Mexico Sports-gear company sells hockey gloves to Canadian team Bike store sells five used carbon-fiber bikes Local stockbroker executes trades for clients 600,000 100,000 5,000 2,000 500,000 300,000 600,000 400,000 200,000 200,000 2,000,000 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sigr front of those numbers. a. Consumption $707000. b. Investment = $ [2600000. c. Government purchases = $ B00000 d. Net exports $200000
QUESTION 23 Which of the following activities won't be registered at their market values in the current year GDP You clean your apartment You cook for yourself at home chicken parmešan a. b. C. You help a friend studying math for an upcoming exam d. All of the above O a O b d. QUESTION 24 Robert, an American citizen, buys a computer made in China for $1.000 to use in his editing business. Therefore, a. investment increases in $1.000 and net exports decreases in $1.000 b. consumption increases in $1.000 and net exports decreases in $1.000 C. investment increases in $1.000 and net exports increases in $1.000 d. consumption increases in $1.000 and net exports increases in $1.000 O a Ob O c
Consider the standard Ramsey model with endogenous labor supply. Assume that the house- hold has a unitary time endowment that it can split between labor time (L;) and leisure time (1 – Lt). The household's problem is defined as follows: Σ Vo Bt. max Ct,Ct+1,Lt,Lt+1,Kt+1 t=0 s.t. K41 - Kį =r¡Kt +W¿Lt – Ct The representative firm maximizes profit as follows: max по — Lt,Kt Y; – w;Lt – (rt + 8)K; (1+r¿)* t=0 s.t. Y = AK, L -a