Over the last few decades, Americans have become more likely to usedaycare for their young children rather than to keep them at home. Thischange in behavior, by itself, hasnot affected measured GDP.O increased measured GDP to the extent that the value of the daycareexceeded the cost of the purchased supplies used to care for children athome.O reduced measured GDP.O increased measured GDP only to the extent that the value of the daycareexceeded the value of child home care.increased measured GDP by the full value of the daycare.

Daycare is a service that is produced and consumed in the marketplace. When parents pay for daycare,…

Answered: Over the last few decades, Americans…

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 Table below. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals: Product Quantity Price Sweatshirts 50 $35.00 Dental examinations 40 75.00 Coffee drinks 1,000 4.00 Coffee beans 2,000 0.50 a. $9,750 b. $8,750 c. 3,090 units d. $7,250
Why do economists include only final goods and services in measuring GDP for a particular year? Why don't they include the value of used goods, i.e. cars, furniture, etc., bought and sold? Define net exports. Explain how US exports and imports each affect domestic production. How are net exports determined? Explain how net exports might be a negative amount. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Calculate GDP using the information in the table below: SBillions Durable goods 250 Nonresident investment 750 Government purchase of goods 1000 Exports 150 Government purchase of services 350 Residential investment 150 Services 600 Imports 250 Change in business inventories 40 Nondurable goods 650 Select one: O a. 2340 O b. 3690 О с. 3340 O d. 3760
Help Save Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells the dresses for $1,400 to kids attending the prom. The total contribution to GDP of this series of transactions is 37:07 Multiple Choice O $2,500. ○ $700. O SC $1,400. $1,300. 1 2 zoom Q W A S $ % 54 #3 E ய сла 5 MacBook Pro K6 & * ( 7 8 9 R T Y U - +1 יו O O D F G H J K L Z X C T H option command > B N M - A جو P { } [ ] = ? command option
Refer to the Table. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 3 is Year 1 Good X 60 Good Y 100 OA) $204. OB) $222. OC) $250. OD) $270. Production Year 2 80 110 Year 3 100 130 Year 1 $1.00 $0.80 Prices Year 2 $1.00 $0.90 Year 3 $1.40 $1.00
Use the following table to answer this question The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis. Consumer spending Durable goods Nondurable goods Services Investment spending Fixed investment spending Nonresidential Structures Equipment and software Residential Change in private inventories Net exports Exports Imports Government purchases of goods and services Federal Category National defense Nondefense State and local What is the value of l? O A. $9,710.2B. O B. $2,130.4B. O C. $2,674.8B. O D. $5,794.4B Components of GDP in 2020 (billions of dollars) $1,082.80 2,833.00 5,794.40 2,134.00 1,503.80 480.3 1,023.50 630.2 -3.6 1,662.40 2,370.20 979.3 662.2 317.1 1.695.50
The table below shows the price of inputs and the price of outputs at each step in the production process of making a shirt. Assume that each of these steps takes place within the country. Inputs Value of output Cotton Farmer $0 $1.55 Fabric Maker $1.55 Sewing and Printing $3.65 $3.65 $18.20 Instructions: Round your answers to two decimal places. a. Using the standard expenditure method, the total contribution of this shirt to GDP is: b. If we use a value-added method (i.e., summing the value added by producers at each step of the production process, equal to the value of output minus the price of inputs), the contribution of this shirt to GDP is: c. If we mistakenly added the price of both intermediate inputs and final outputs without adjusting for value added, we would find that this shirt contributes: to GDP This overestimates the true contribution by: $
In the GDP equation, business spending is referred to as: O Consumption Investment O Government O Net Exports
Explain how net exports affect the U.S. economy.Describe both positive and negative impacts onGDP. Why do national income accountants usenet exports to compute GDP, rather than simplyadding exports to the other expenditure componentsof GDP?
Calculate GDP using the information in the table below: SBillion Durable goods 500 Nonresidential investment 300 Government purchase of goods 400 Exports 300 Government purchases of services 150 Residential investment 100 Services 700 Imports 200 Change in business inventories -50 Nondurable goods 700 Select one: O a. 1950 O b. 2500 O c. 2900 O d. 2750
A final good or service is something that O retains no value when factored into the GDP O is not a component of another good or service O does not factor into the GDP is the component for a final product

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