Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year. Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative. Consumption Investment Government Purchases Imports Exports Net Exports Gross Domestic Product (GDP) Amount (Dollars)

Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year. Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative. Consumption Investment Government Purchases Imports Exports Net Exports Gross Domestic Product (GDP) Amount (Dollars)

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 3CQ

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Apple, the consumer electronics giant, on Tuesday rolled out new versions of its popular iPod music player. CEO Steve Jobs also unveiled cheaper models of its Touch music player, a touchscreen-only device. An 8-gigabyte version now costs $229, down from $299. A 32-gigabyte model costs $399, down from $499. Suppose when the price of an iPod decreases by 20 percent, the number of songs downloaded on iTunes increases by 30 percent. Based on this information iTunes are A. a normal good. B. an inferior good. C. substitutes for iPods. D. complements to iPods.
Consider Tralfamadore, a hypothetical country that produces only burgers. In 2018, a burger is priced at $4.00. Complete the first row of the table with the quantity of burgers that can be bought with $700. Hint: In this problem, assume it is not possible to buy a fraction of a burger, and always round down to the nearest whole burger. For example, if your calculations result in 1.5 burgers, the answer should be 1 burger. Price of a Burger Burgers Bought with $700 Year (Dollars) (Quantity) 2018 4.00 2019 Suppose the government of Tralfamadore cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government prints money. As a result, the money supply rises by 20% by 2019. Assuming monetary neutrality holds, complete the second row of the table with the new price of a burger and the new quantity of burgers that can be bought with $700 in 2019. The impact of the government's decision to raise revenue by printing money on the value of money is…
Levi offered to sell his car to Evan for $5,000 cash. Evan responded to Levi's offer by saying: "I will buy your car for $ 5,000. I will pay you $2, 500 now, and $2, 500 in one week's time." Have Levi and Evan formed a binding agreement? Explain.
M10
Megan is a college student who consumes food and transportation. Last year, she consumed 90 meals and purchased 100 gallons of gasoline per month. Suppose that last year the price of a meal was $5 and the price of a gallon of gasoline was $2.23. However, this year, the price of a meal is $6 and the price of a gallon of gasoline is $3.92. As a result, Megan consumes 100 meals and 80 gallons of gasoline. For this example, assume Megan's utility this year is the same as her utility last year (and that her preferences have not changed). Calculate a Laspeyres cost-of-living index for Megan using 100 as the base for last year. In particular, the Laspeyres index for this year is nothing. (Enter your response rounded to two decimal places.)
Use the table, with data for Tasha and Hui Er, to answer the question. Table: Tasha's Car Wash and Hui Er's Car Wash Tasha’s price = $5 Tasha's price = S9 Hui Er's price = $5 | Hui Er's profit = S3,000 Hui Er's profit = S6,000 Tasha's profit = $3,000 Tasha's profit = $700 Hui Er's profit = $5,000 Tasha's profit = $6,000 Tasha's profit = $5,000 Hui Er's price = $9 | Hui Er's profit = $700 Use the check mark method to determine which cell contains a Nash equilibrium. Under a Nash equilibrium, Hui Er earns profits of and Tasha earns profits of, $700; $6,000 $6,000; $700 $3,000; $3,000 $5,000; $5,000
Jayden's grandmother gives him $240$⁢240 each month, which he spends on pizzas and burgers. Usually, he buys 44 pizzas for $180$⁢180 and spends the remaining $60$⁢60 on 44 burgers. However, the price of 11 pizza has increased by $5$⁢5; the price of a burger has not changed. Now, Jayden will buy only 33 pizzas per month.Calculate how many burgers Jayden can afford to buy if he still wants to spend all the money. If necessary, round any intermediate calculations to two decimal places. For your final answer, write the exact value; do not round.
You own a hot dog stand that you set up outside the student union every day at lunch time. Currently, you are selling hot dogs for a price of $3, and you sell 30 hot dogs a day (point A on the diagram). You are considering cutting the price to $2. The graph shows two possible increases in the quantity sold as a result of your price cut. Use the information in the graph (new quantities are given on the horizontal axis) to calculate the price elasticity between these two prices on each of the demand curves. Use the midpoint formula to calculate the price elasticities. On the demand curve containing the points "A" and "B", the price elasticity of demand for a price cut from $3 to $2 is. (Hint: Include the negative sign and enter your response rounded to two decimal places.) On the demand curve containing the points "A" and "C", the price elasticity of demand for a price cut from $3 to $2 is. (Hint: Include the negative sign and enter your response rounded to two decimal places.) Price…
You own a hot dog stand that you set up outside the student union every day at lunch time. Currently, you are selling hot dogs for a price of $3, and you sell 30 hot dogs a day (point A on the diagram). You are considering cutting the price to $2. The graph shows two possible increases in the quantity sold as a result of your price cut. Use the information in the graph (new quantities are given on the horizontal axis) to calculate the price elasticity between these two prices on each of the demand curves. Use the midpoint formula to calculate the price elasticities. A On the demand curve containing the points "A" and "B", the price elasticity of demand for a price cut from $3 to $2 is|. (Hint: Include the negative sign and enter your response rounded to two decimal places.) D2 On the demand curve containing the points "A" and "C", the price elasticity of demand for a price cut from $3 to $2 is. (Hint: Include the negative sign and enter your response rounded to two decimal places.) :37…
Scenario: When the price of butter decreased by 10%, the quantity that consumers demanded increased by 13%. (Write the equation)
Mary buys cell-phone services from a company that charges a minimum of $25 per month. For that $25, she is allowed 100 minutes of free calls. For any calls above 100 minutes, she pays 50 cents per additional minute. Draw graph that describes Mary's monthly bill as a function of total time.
Suppose you go to Trader Joe's to buy fruit for the week. You only like apples (A) and bananas (B) and your weekly fruit budget is $11. When you arrive at Trader Joe's you notice that the price of an apple is $1.00 and the price of a banana is $0.25. QUESTION #1: How many apples and bananas should you buy? QUESTION #2: When you have found the answer, draw a diagram that shows the outcome. Step #1. Determine your preferences. Let's suppose that your preferences can be represented by the following utility function: U(A, B) = AªBß = A0.40 B0.60 FYI: This utility function is known as a Cobb-Douglas utility function. It is the most commonly used function used in economics! The reason we like it so much is that it has: 1. Constant returns (double your consumption of A and B and your utility doubles); a + B = 1 2. Diminishing marginal utility (the extra utility gained from consuming A (or B) decreases as you consume more of the A good (or B good); a 0.40); B > a. Step #2: Determine your…