Question 7Refer to the information provided in Table 21.9 below to answer the question(s) that follow.Table 21.9ProductionPricesYear 1Good X 60Year 2$1.00$0.90Year 3S1.40$1.00Year 2Year 3Year 1$1.0080100Good Y 100110130$0.80Refer to Table 21.9. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 3 isO $204.O $222.O $250.O $270.

GDP denotes the total aggregate output that is produced in the country at a given time period.…

Answered: Question 7 Refer to the information…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. What is PPP GDP and why do we need to use it? 2. Why is PPP GDP per capita a better measure then GDP alone?
28 24 point A point E point F 20 point B 16 12 • point C point D 8 4. 4 12 16 20 24 product X product Y
Please assist with the below
9. Study Questions and Problems #9 The following graph shows a production possibilities curve for a hypothetical less-developed country. Suppose that initially the economy is at point W. Then, suppose that an inflow of external funds from abroad permits the country to increase its capital from $3 billion to $5 billion. CAPITAL GOODS (Billions of dollars per year) 10 9 Z PPC 0 0 1 2 3 4 6 7 8 CONSUMPTION GOODS (Billions of dollars per year) 5 9 10 (?) Complete the following paragraph to explain how external financing helps the poor country achieve economic growth and development When the country is operating with only enough capital to replace depreciation, its consumption level is economy grow by reducing consumption. An inflow of external funds from abroad its subsistence level. Thus, the capital, and its production possibilities curve which Given your analysis, the country's economy will move to point production of
7. Which of the above figures represents economic growth caused by an improvement in the technology of producing product of both X and Y? a) FIG A b) FIG B c) FIG C d) FIG D
Production possibility curve shows ____________. a. All of these b. The output that can be produced by an economy. c. Level of output with minimum wastage of inputs d. Production of two products that are produced by an economy
Which phrase best replaces X? Lower prices and increased quality of items Higher profits and decreased costs of production Higher supply and increased value of corporations Lower demand and decreased scarcity of resources
Suppose the information in the table is for a simple economy that produces and consumes only four goods and services: textbooks, hamburgers, shirts and cotton. 2011 2012 2013 Product Quantity Price Quantity Price Quantity Price Textbooks 90 $50 100 $60 100 $65 Hamburgers 75 2 100 2 120 2.25 Shirts 50 30 50 25 65 25 Cotton 100 0.80 800 0.60 120 0.70 Please enter only numbers (no commas, dollar signs etc) in the spaces provided. Calculate the CPI for 2012 (using 1 decimal place). _____ Calculate the CPI for 2013 (using 1 decimal place). _____ Calculate the inflation rate for 2012 using the CPI (using 1 decimal place). ____% Calculate the inflation rate for 2013 using the CPI (using 1 decimal place). ____%
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…
7. In seeking to show that population growth threatens to exhaust the world's agricultural resources, the Worldwatch Institute has pointed out that in 1988, for the first time in its history, the United States ate more food than it grew. (a) By what measure do you suppose the United States ate more food than it grew in 1988? Volume? Weight? Calories? Or monetary value?
If the maximum potential combination of consumer and capital goods produced by an economy has increased over time, which of the following is true? a. Marginal tax rates have increased due to contradictory fiscal policy. b. Keynesian policy initiatives have allowed for increased consumption of both consumer and capital goods. c. New physical capital has been introduced to firms throughout the economy. d. Resources are being utilized inefficiently at this combination of goods and services. e. Monetary policy authorities have effectively decreased bank reserves through open market operations.
5. Use the information on the following transactions for a country named Neverland: i. Local coffee shops sold $10,000 worth of coffee to local consumers. To produce the coffee, they purchased $2,000 worth of coffee beans from local coffee growers. The same growers also sold coffee for $5,000 to a foreign company. ii. The local textile company bought $1,000 worth of wool from an Australian com- pany and produced $10,000 worth of clothes sold to domestic consumers. The local textile company also bought 10 Vespas from Piaggio* (foreign company) at the cost of $1,000 each to use for deliveries. What is the value of Gross Domestic Product (GDP) in Neverland? (a) 27,000 (b) 19,000 (c) 30,000 (d) 24,000 (Right answer)

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