PRODUCTION APPROACH5) Each group of words below lists one final good and some intermediate goods. Put a star next to theone that gets included in GDP.a) Wheatb) Potato ChipsFlourBreadPotatoesSaltOilc) SteelLawnmowerPlasticWiringd) LumberShinglesHouseConcretee) LeatherBaseball GloveStitchingf) ВookInkBindingMaterialРаper6) Suppose a car manufacturer sells a car for $22,500. In order to produce the car, he purchases steelfor$8,000, plastic for $2,000, and electronics for $6,000. How much has been added to GDP?EXPENDITURE APPROACHGDP HOMEWORK7) Each item below describes an item that is part of GDP. Which component of GDP does it fit into?(Remember: Expenditure = Consumption + Investment + Government + Net Exports)а)A college student buys new textbooks.b)A bottling company sells its soda to Japan.A new water treatment facility is purchased by the city.A business purchases a new set of computers.c)d)8) In 2011 the United States economy had a GDP of $14,991 billion according to the UnitedNations. If consumption was $10,729 billion, government spending was $2,594 billion, and netexports was -$568 billion, how much was investment spending?INCOME APPROACH9) Each item below describes an item that is part of GDP. Which component of GDP does it fit into?(Remember: Income = Wages + Interest + Rent + Profit)a)After a CEO has paid all of his costs, he gets to keep $3.5 million.b)A manufacturing plant must make a monthly payment for its loans.c)Employees must work a minimum of 40 hours to get paid a salary.d)A coal mining business pays for the land it uses to mine from.10) In 2011 the United States economy had a GDI (Gross Domestic Income) of approximately$13,548 billion according to the Bureau of Economic Analysis. If wages were $8,340 billion,interest payments were $516 billion, and rent was $430 billion, approximately how much wasremaining for profit? HomeworkGDPDIRECTIONSEach section below contains problems associated with a particular aspect of GDP. Use your knowledgeof GDP to answer each question. You may use a calculator if needed.NOMINAL GDP AND REAL GDP1) The following tables list GDP data for a fictional economy in two different years. Pretend this economyonly produces these three items. What is the nominal GDP each year?Year 1 (Nominal GDP)Year 2(Nominal GDP)GoodPriceQuantityGDPCookies$250GoodPriceQuantityGDPDoughnuts$535Cookies$345Cake$1015Doughnuts$740ТОTALCake$125TOTAL2) Now calculate the real GDP for Year 2 usingYear 1 as the base year. This means to use theYear 1 prices with the Year 2 quantities. Usethe table to the right to fill in yourYear 2 (Real GDP)GoodPriceQuantityReal GDPcalculations.Cookies45Doughnuts403) How much did nominal GDP for Year 2overstate the growth in this economy? (i.e.How much larger was Year 2 nominal GDPthan Year 2 real GDP?)Cake25TOTALGDP PER CAPITA4) Circle the country you would expect to have a higher GDP per capita based on its location.a) KenyaGermanyb) ChinaUnited Statesc) AustraliaBrazilNigeriaSpaind) Argentinae) India

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PRODUCTION APPROACH 5) Each group of words below lists one final good and some intermediate goods. Put a star next to the one that gets included in GDP. a) Wheat Flour Bread b) Potato Chips Potatoes Salt Oil c) Steel Lawnmower Plastic Wiring d) Lumber Shingles House Concrete e) Leather Baseball Glove Stitching ) Вook Ink Binding Material Раper

PRODUCTION APPROACH 5) Each group of words below lists one final good and some intermediate goods. Put a star next to the one that gets included in GDP. a) Wheat Flour Bread b) Potato Chips Potatoes Salt Oil c) Steel Lawnmower Plastic Wiring d) Lumber Shingles House Concrete e) Leather Baseball Glove Stitching ) Вook Ink Binding Material Раper

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An example of an economic entity is a:a. town.b. business.c. non-profit hospital.d. church.
Capital Goods M P K Consumer Goods 4. Assuming the inner curve is our current production possibilities frontier, points O and P represent A. an inefficient use of resources. B. an output that is not possible to produce. C. points of unemployed resources. D. points of fully employed resources.
explain the difference between intermediate goods and final goods and give an example of each.
Solve the attahment.
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.
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c) Assume she spends one hour writing book reports and two hours doing problem sets each week.Label the work she does ( producction) and the work she gets credit for(consumption) without trade A
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…
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In the simple circular-flow diagram, a. households own the factors of production. b. households buy all the goods and services that firms produce. c. land, labor, and capital flow from households to firms. d. All of the above are correct.
c) Assume she spends one hour writing book reports and two hours doing problem sets each week.Label the work she does ( producction) and the work she gets credit for(consumption) without trade A
am. 118.