Ahlam grows carrots in her garden for home consumption. This activity is: a. Excluded from GDP because an intermediate good is involved b. Productive but is excluded from GDP because no market transaction takes place. c. None of the above. d. Excluded from GDP to avoid double counting
Q: Kodak is contemplating entering (In) the instant photography market and Polaroid can either fight…
A: As we see from the extensive form representation of the game this means that this is a sequential…
Q: Question 5 (4 marks) Figure 1.1 is a hypothetical economy producing SUV's and Cars. Which of the…
A: Production possibility curve is defined as the combinations of different outputs with a given amount…
Q: Which one of the following graphically displays one of the major challenges when integrating…
A: As a general rule, the correspondence framework for savvy grid ought to meet prerequisites for time…
Q: Case Scenario/Problem Real World is television production company that manufactures movies. The…
A:
Q: If the U.S. economy enters a new financial crisis, the government may use monetary policy tools to…
A: Banking: It refers to the facility that is given to people that helps them to save their money.…
Q: ecidin expan sma hot expanding (N) incurs no cost for the firm. In either case, the margin Os are…
A: *Answer: Meaning of Decision Theory under Nash Equilibrium: The term decision theory refers to…
Q: Under the monopolistic competition price discrimination can be easily made True or false
A: "Monopolistic competition is a type of market structure where firms in this market structure produce…
Q: What are the goals of a human resource department?
A: All businesses need money to start off in order to rent a space, buy equipment, or pay for…
Q: Consider the following graph pertaining to a monopolist. Does the monopolist choose the output rate…
A: At the point where marginal revenue equals marginal cost, a monopolist can maximise its earnings. At…
Q: What are the effects of a tax cut on consumption and savings in the presence of credit market…
A: Ricardian equivalence claims that the consequences on the national economy of funding government…
Q: the South African government can fund its deficits without the economy experiencing rising general…
A: The budget deficit occurs where the total revenue is less than the expenditure of government.
Q: 7. Utility maximization question Ross Geller is an archeologist who works for a museum, and he has…
A: Utility maximizing condition is MUL / w = MUCWhere MUL is marginal utility from leisure, MUC is…
Q: Total revenue is: a. Quantity sold times price b. Price times income c. Equal to costs of production
A: Total revenue, commonly referred to as gross revenue, is the sum of money that your company makes…
Q: What are the objectives of regulators? Under what conditions is regulation most likely to raise…
A: Regulatory job of government includes guideline of different business and financial exercises by…
Q: What is meant by unitary elastic? Explain its theory using an example.
A: In economics, demand refers to a consumer's willingness and capacity to buy a good or service. It is…
Q: 10 Read the following paragraph and answer the question that follows. A number of factors…
A: When the Gross Domestic Product (GDP) fluctuates around its long-term natural growth rate, it is…
Q: Consider the following normal form of the game with two players. Which of the following is the…
A: In the maximin strategy, we first find the minimum payoffs that a particular player can receive from…
Q: (A) Consider the market for Gym clothes, here's the supply function QS = 11 + 3Pg + OPo and the…
A: Demand function: QD = -4Pg+4Po Supply function: QS = 11+3Pg+0Po Pg = Price of gym cloths Po = Price…
Q: Suppose that there is a credit market imperfection due to asymmetric information. In the economy, a…
A: Given information fraction of b are lenders with endowment Y in the current period and 0 in the…
Q: Assume the prices of product X and Y are $1.50 and $1.00, respectively, and that Mr. Chen has $24 to…
A: Budget constraint show the combination of the good and services which is purchase by the consumer…
Q: Bankers’ duties do not include one of the following:* A. To receive money for the customer’s…
A: Bank is a financial institution that bridges the gap between the lender and the borrower. People…
Q: Price Quantity Demanded $5 385 $10 365 $15 345 $20 325 $25 305 $30 285 $35 265 $40…
A: The formula for mid-point price elasticity of demand is given by: Price Elasticity of demand ed =…
Q: Optimal consumption refers to Multiple Choice the mix of products that maximizes total utility…
A: In consumer theory, the consumer has some sort of preference when choosing different goods for…
Q: Suppose the ISP is considering decreasing the price it charges by $20. Because of the price effect,…
A: Total revenue is the amount generated after selling the whole output per unit price of P$. Thus it…
Q: Q.3 Two firms produce homogeneous products. The inverse demand function is given by: p(x₁, x2) =…
A:
Q: The demand for domestic goods exceeds the domestic demand for goods when X IM/€
A: Demand for domestic goods = C + I + G + X - IM/e Domestic demand for goods = C + I + G Where C is…
Q: When assessing the optimal size of the public sector, the benefits of government action Multiple…
A: Public goods are those goods which are non-rivalrous and non-excludable. It means that no individual…
Q: 38. Negative externalities are also called a. positive externalities. b. external benefits. c.…
A: Externalities is the impact of action happening between two parties on some other third party.
Q: Definitions of major macroeconomic indicators.
A:
Q: 3.3 Highlight the main benefits of increasing trade for the South African economy
A: International trade is a crucial factor to consider while examining a nation. The nation's…
Q: If the price elasticity of demand is 0.15, and the price is doubled, this will lead to a a. 30…
A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…
Q: The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau…
A: [GDP deflator = Nominal GDPReal GDPx100] [Percent Increase in Price Level (INFLATION) = GDP…
Q: The optimal level of output can be achieved by levying a tax on a company producing a negative…
A: Negative externality refers to the external cost associated with the action of an individual and…
Q: Peter spends all of his income on X and Y. Given that when price of X is 3 and the price of Y is 5,…
A: Revealed preference hypothesis deals with the presumption that buyers are normal. At the end of the…
Q: If the government increases taxes by 50, ceteris paribus, identify or solve for the ... IS Relation…
A: IS curve denotes all the combinations of interest rate and output in which the goods market is in…
Q: Source:…
A: Factors of production:- The resources that companies utilize to create commodities are regarded as…
Q: L B D K
A: The deadweight loss is created in the monopoly market where the firm tends to charge higher price by…
Q: Figure 1.1 is a hypothetical economy producing SUV's and Cars. Which of the following do not…
A: Production possibility frontier (PPF) illustrates the combination of two goods that a nation can…
Q: Suppose both the buyers and sellers expect the future price of hamburgers to increase. What will be…
A: The point of intersection of demand and supply curve is referred to be as the equilibrium point of…
Q: The ff. are the expenses (in Million Malisya Inggit, MMI) for the national accounts of Malisya in…
A: According to the question, it is given that : The expenses in MMI for the national accounts of…
Q: With the help of an IS-LM diagram, explain the effects of an expected future tax increase on current…
A: A macroeconomic model known as the IS-LM links interest rates, which are controlled by the…
Q: Consider an open economy flexible exchange rate IS-LM model with consumption, investment and net…
A: Money demand refers to the quantity of money that the various factors and agents in an economy…
Q: Spending on a public good such as national defense does greatly does slightly does not night or…
A: Public goods are non-rival and non-excludable in nature. Non-excludable: It implies that it is…
Q: A firm's short-run average cost curve is U-shaped. Which of these conclusions can be reached…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: The optimal level of output can be achieved by levying a tax on a company producing a negative…
A: Negative externalities are negative side effects of economic activities that are not captured by the…
Q: At the insistent urging of President Obama, Congress has enacted massive spending bills totaling…
A:
Q: a. In the long-run in a decreasing-cost competitive industry, HD EDU's long-run supply curve is…
A: A competitive industry permits firms to openly enter and leave the market and has not many…
Q: Of the counties listed below, _________ is the best example of when the state, rather than private…
A: An organisation that is privately held is one that is not traded publicly.This indicates that the…
Q: Assume MPC 0.75. If an initial fiscal restraint of $100 billion is desired, by how much must Round…
A: The measure that depicts a portion of an additional dollar being spent or consumed of income of a…
Q: Suppose that when income increases from $2900 to $3250, quantity demanded changes from 210 to 270.…
A: Elasticity is the concept that is used to determine the changes in demand or supply due to changes…
Step by step
Solved in 2 steps
- Tom Atoe grows tomatoes for home consumption. This activity is: a. Productive but is excluded from GDP because no market transaction occurs. b. Included in GDP because it reflects production c. Excluded from GDP in order to avoid double counting. d. Excluded from GDP because an intermediate good is involved.Ahlam grows carrots in her garden for home consumption. This activity is: a. Excluded from GDP because an intermediate good is involved b. Productive but is excluded from GDP because no market transaction takes place. c. None of the above. d. Excluded from GDP to avoid double countingWhich of the following would be counted as afinal good for inclusion in GDP?a. A piece of glass bought this year by a consumerto fix a broken window.b. A sheet of glass produced this year by Ford touse for windows in a new car.c. A tire produced this year and sold to a carmaker for a new car sold this year.d. None of the answers are correct.
- The service which an elder brother performs when he stays at home to look after his baby sister while his parents are away and for which he receives no payment is not included in the calculation of GDP because: A. B. C. D. E. it is a non-market transaction. it is an example of double-counting. it is non-productive transaction. it is only included in real gross domestic product. it is a non-investment transaction.Which of the following is a short coming of GDP? a.GDP excludes changes in inventries. b.GDP includes an estimate of illegal transactions. c.GDP exclude nonmarket transations. d.GDP excludes business investment spending.Adam lives in California and, after graduating college, opened up an ice cream business on the Venice Beach boardwalk. Which items are not counted in GDP? Select all that apply and explain why each of the items you selected is not counted in GDP. a. Adam purchases a new sub-zero refrigerator for his ice cream shop. b. The neighborhood kids broke Adam's window at the ice cream shop during a baseball game. Adam replaces the window. c. After a successful summer, Adam travels to Egypt to visit the Red Sea. d. Adam sells his used accounting textbook to his best friend Billy. e. Adam spends a Saturday afternoon mowing his elderly neighbor's lawn. He earns $100 cash that day.
- Value-Added to GDP Question. Production Value of Input Value of Output Value Added Coffee Bean farming $0 A B Processing Coffee $7.00 C $3.00 Distributing Coffee D 11.50 E Selling Coffee to customers F G $4.50 a. Fill in the table above. The values for values of inputs, outputs, and value added. I listed them as A, B, C, D, E, F, G. So in your answer in the text box just type is A = ? B = ? C = ? D = ? E = ? F = ? G = ? 1. How much is added to GDP from this production activity?A. For each of the following examples, state if you think it is included in the 2010 calculation for the Philippine GDP. A 1962 Camaro sold to a collector in February 2010. A tractor produced by local automobile company in May 2010 and sold to a farmer in September 2010. A cell phones produced in August 2010 in Shanghai China. A car produced in Philippines in 2010, but sold to a customer in January 2011. Nonmarket goods such as homemaking and child-rearing. The benefits of clean air and water. Estimated values of activity in the underground economy. Purchases and sales of goods produced in previous periods. Government pay its fiscal debt interest in 2010. The sale of a new car from a manufacturer’s inventory in 2010. Imported rice from Thailand. The purchase of a watch from a Swiss company in the Philippines. Mang Juan’s house constructed in 2009. A company invest in building a new plant in middle of the year 2010 and to be done at the end of the…Which of the following is a shortcoming of GDP?a. GDP excludes changes in inventories.b. GDP includes an estimate of illegaltransactions.c. GDP excludes nonmarket transactions.d. GDP excludes business investment spending.
- A farmer sells five pounds of pecans to a Smith’s Fresh Pecans for $10. Smith’s Fresh Pecans resells three pounds for $4.50 per pound. The remaining pecans are shelled and canned and sold for a total of $8.00 Taking these transactions into account, how much is added to GDP? a. $22.50 b. $29.50 C. $21.50 D. $31.50What counts as GDP (I)? By how much does GDP rise in each of the follow-ing scenarios? Explain. (a) You spend $5,000 on college tuition this semester.(b) You buy a used car from a friend for $2,500.(c) Te government spends $100 million to build a dam. (d) Foreign graduate students work as teaching assistants at the local uni-versity and earn $5,000 each.A farmer grows a bushel of wheat and sells it to a Miller for $20.00. The Miller turns the wheat into flour and then sells it to a Baker for $25.00. The Baker uses the flour to bake bread and sells the bread to a Musician for $40.00. The Musician eats the bread. The Musician, also grows pumpkins in his backyard garden to feed his family. a) Why does GDP not include goods that are resold? b) why is it desirable for a country to have a large GDP?