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Section A 20 marks 1. Can these activities be considered part of GDP? Answer the following statements by indicating Yes or No. 1 mark each a. John sells fruits in the market in town. b. Two (2) were hurt in car accident and were treated in their local hospital. c. A garage buys spare tyres to sell to customers next year. d. If a Jamaican citizen works temporarily in St. Lucia. e. A Barbadian owns a firm in Haiti. 2. Suppose you are given the following information: price. Qs = 200 + 3P Qd=400-P where Qs is the quantity supplied, Qd is the quantity demanded and P is a. From this information compute equilibrium price and quantity. 6 marks b. Now suppose that a tax is placed on buyers so that Qd = 400 - (2P + T) where T is taxes. If T = 20, solve for the new equilibrium price and quantity. (HINT: Note: You are solving for the equilibrium price for sellers and buyers and the equilibrium quantity). 9 marks

Section A 20 marks 1. Can these activities be considered part of GDP? Answer the following statements by indicating Yes or No. 1 mark each a. John sells fruits in the market in town. b. Two (2) were hurt in car accident and were treated in their local hospital. c. A garage buys spare tyres to sell to customers next year. d. If a Jamaican citizen works temporarily in St. Lucia. e. A Barbadian owns a firm in Haiti. 2. Suppose you are given the following information: price. Qs = 200 + 3P Qd=400-P where Qs is the quantity supplied, Qd is the quantity demanded and P is a. From this information compute equilibrium price and quantity. 6 marks b. Now suppose that a tax is placed on buyers so that Qd = 400 - (2P + T) where T is taxes. If T = 20, solve for the new equilibrium price and quantity. (HINT: Note: You are solving for the equilibrium price for sellers and buyers and the equilibrium quantity). 9 marks

Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
Section: Chapter Questions
Problem 2QP
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Section A 20 marks 1. Can these activities be considered part of GDP? Answer the following statements by indicating Yes or No. 1 mark each a. John sells fruits in the market in town. b. Two (2) were hurt in car accident and were treated in their local hospital. c. A garage buys spare tyres to sell to customers next year. d. If a Jamaican citizen works temporarily in St. Lucia. e. A Barbadian owns a firm in Haiti. 2. Suppose you are given the following information: price. Qs = 200 + 3P Qd=400-P where Qs is the quantity supplied, Qd is the quantity demanded and P is a. From this information compute equilibrium price and quantity. 6 marks b. Now suppose that a tax is placed on buyers so that Qd = 400 - (2P + T) where T is taxes. If T = 20, solve for the new equilibrium price and quantity. (HINT: Note: You are solving for the equilibrium price for sellers and buyers and the equilibrium quantity). 9 marks
Transcribed Image Text:Section A 20 marks 1. Can these activities be considered part of GDP? Answer the following statements by indicating Yes or No. 1 mark each a. John sells fruits in the market in town. b. Two (2) were hurt in car accident and were treated in their local hospital. c. A garage buys spare tyres to sell to customers next year. d. If a Jamaican citizen works temporarily in St. Lucia. e. A Barbadian owns a firm in Haiti. 2. Suppose you are given the following information: price. Qs = 200 + 3P Qd=400-P where Qs is the quantity supplied, Qd is the quantity demanded and P is a. From this information compute equilibrium price and quantity. 6 marks b. Now suppose that a tax is placed on buyers so that Qd = 400 - (2P + T) where T is taxes. If T = 20, solve for the new equilibrium price and quantity. (HINT: Note: You are solving for the equilibrium price for sellers and buyers and the equilibrium quantity). 9 marks
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