Suppose a parent was earning $20,000 per year working at a local firm. The parent then decides to quit his job in order to care for his child, who was being watched by a babysitter for $10,000 per year. With this action, GDP will (Click to select) (Click to select) stay constant rise fall

Suppose a parent was earning $20,000 per year working at a local firm. The parent then decides to quit his job in order to care for his child, who was being watched by a babysitter for $10,000 per year. With this action, GDP will (Click to select) (Click to select) stay constant rise fall

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Related questions

Q: Which of the following are included in GDP and which are not? If an item is included, state which…

A: The measure that depicts the final value of goods and services being produced during a specified…

Q: Calculate GDP in the following economy given this information: Consumer purchases: $100 per year…

A: GDP or the gross domestic product is the value of all final goods and services which are newly…

Q: Used textbooks sold at your college bookstore Use books sold at a garage sale Cars made in the…

A: Gross domestic product(GDP) estimates the monetary worth of goods and services, that is, those that…

Q: Describe how the recent change in income may have affected personal savings, business investments,…

A: In the recent period, the world economy is adversely affected by coronavirus created COVID pandemic.…

Q: look at this (Links https://www.cbsnews.com/news/why-gdp-fails-as-a-measure-of-well-being/) article…

A: "GDP (gross domestic product) measures the value of all finished goods and services produced within…

Q: Which of the following are included in this year’s GDP? Explain your answer in each. The income of a…

A: GDP computes the monetary value of final goods and services—that is, those that are purchased by the…

Q: Many years ago, Peggy paid $500 to put together a record collection. Today, she sold her albums at a…

A: Gross domestic product (GDP) is the monetary value of all final goods and services produced in an…

Q: Mostly people argued that GDP is not a better measure of economic well-being. Explain.

A: Economic well-being is the degree of contentment or happiness that people or a society as a whole…

Q: Which of the following would be directly counted in GDP in 2020? Group of answer choices Kitchen…

A: The correct option is A) kitchen cabinets purchased from Home Depot in 2010 to be installed in a…

Q: Which of the following transactions should or should not be counted in GDP? Answer Yes or No and…

A: We shall answer the first three subparts only. Please resubmit the other parts separately in case…

Q: Problem #28- Last year, a small nation with abundant forests cut down $200 worth of trees. $100…

A: The Gross Domestic Product (GDP) is the summation of the money value of all the final goods and…

Q: 2. Accounting for trade in goods and services Consider the following transactions that occur during…

A: Gross domestic product is the sum of domestic spending (equal to consumption spending, investment…

Q: Many years ago, Sophie paid $500 to put together arecord collection. Today, she sold her albums at a…

A: Meaning of GDP (Gross Domestic Product): The Gross domestic product at current price is the market…

Q: Home production, such as cooking food at home, does not count towards GDP. What do you expect…

A: GDP includes in the values of the goods and services that are bought in the markets exclude over the…

Q: What is the contribution to 2020 U.S. GDP in the following scenario? A Michigan family takes a trip…

A: Gross Domestic Product is the total value of goods and services are Produced in the country's…

Q: For each of the following scenarios, tell whether GDP would change and how each of the components of…

A: The objective of the question is to understand the impact of various scenarios on GDP and its…

Q: does a household purchase of a home built in 1985 affect GDP?

A: The Gross Domestic product (GDP) measures the market value of all the final goods and services…

Q: The American Airline purchased an airplane from a Chinese company for $60M. What is the contribution…

A: Gross domestic product refers to the final value of all final goods and services produced in a…

Q: In the following situations, explain what is counted (or is not counted) in this year’s GDP. Apple…

A: GDP refers to the total value of all the final goods and services produced within the economy during…

Q: Which of the following would be included in GDP, the purchase of staplers from Staples by a car…

A: GDP represents the total monetary value of all final goods and services produced within a country…

Q: Explain the initial effect of each of the following events on Canada’s GDP. a) Toby sells his used…

A: Gross domestic product refers to the final value of all goods and services produced in a territory…

Q: You just bought an old car a couple years ago for $1,000 and put about $5,000 of parts and labor…

A: Secondhand goods, such as used cars, are excluded from GDP calculations. When these things were…

Q: During 2009, the leather company produced enough leather for 20 couches. The couch manufacturing…

A: GDP based on value added method = value sold to leather company 16000 + 4000 + value added by couch…

Q: Last year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100…

A: Final value of book shelves = $250 Value of unused lumber in inventory = $(150-100)= $50 Value of…

Q: GDP is a good and useful measure of general economic activity for each of the following reasons…

A: Answer: Option C (The total value of GDP is lower if the distribution of income is lower and less…

Q: Tom is an organic gardener. For several years, he produced only for his own consumption. Last…

A: GDP or Gross Domestic Product can be defined as the sum total of the market value of all final goods…

Q: Market research has revealed the following information about the market for washing machines: The…

A: Equilibrium is the state of rest, that is, from the point of equilibrium no party have any incentive…

Q: A Canadian company imported 100 TV sets from Korea for $250 each in 2018. The company sold 80 of…

A: GDP or gross domestic product is the sum of the value of all end commodities produced within the…

Q: Suppose a group of British investors finances the construction of a plant to manufacture skateboards…

A: GDP refers to the aggregate value of total output of all goods and services produced within the…

Q: Through the first half of 2023, total new-vehicle sales in the U.S. were up more than 12%. This…

A: Gross Domestic Product(GDP):GDP is the total market value of all final goods and services produced…

Q: Which of the following are counted in this year GDP? Justify your answer. a) A local car dealer sold…

A: Gross Domestic Product refers to the value of all the finished goods and services produced inside…

Q: Which spending category of GDP does each of the following transactions count in? Please enter the…

A: suppose,C= Consumption.I= Investment.G= Government spending.NX= Net export.N=None. We can enter the…

Q: he table below includes data for a one-year period required to calculate GDP from the income side…

A: Gross domestic product (GDP) refers to the summation of all market value of goods and services which…

Q: Your aunt, who lives in Royal Oak decides to buy a new, American made dress. In GDP accounting this…

A: GDP or ‘gross domestic product’ is the value of the ‘goods & services’ that are produced within…

Q: Indicate what components of GDP (if any) each of the following transactions would affect. Check all…

A: Answer in step 2

Concept explainers

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems:

Question

Suppose a parent was earning $20,000 per year working at a local firm. The parent then decides to quit
his job in order to care for his child, who was being watched by a babysitter for $10,000 per year.
With this action, GDP will (Click to select)
(Click to select)
stay constant
rise
fall

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?
Suppose a group of British investors finances the construction of a plant to manufacture skateboards in St. Louis, Missouri. How will the construction of the plant affect GDP? Suppose the plant generates $100,000 in corporate profits this year. Will these profits contribute to GDP? Why or why not?
Are the following included in US GDP? Briefly explain your answer. Used textbooks sold at your college bookstore Use books sold at a garage sale Cars made in the United States at a Toyota factory Cars made in Germany at a General Motors factory The price paid by an American tourist staying at a French hotel The price paid by a German tourist staying at a New York hotel
Q2
Last year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100 worth of trees into $150 worth of lumber. It used $100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nation's GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?
Which of the following transactions should or should not be counted in GDP? Answer Yes or No and briefly explain your answer. Answers without explanation will not be considered in grading, even if they are correct. a. You buy a pair of new cowboy boots on a trip to Texas b. You buy a pair of vintage cowboy boots from your cousin in El Paso c. A cat burglar sells $10,000 of stolen jewelry to a fence d. Amazon issues $1 billion worth of new shares e. GM purchases $100 million worth of tires from Firestone f. A private company builds a new road in Memphis Y g. Stay-at-home parents provide an estimated $500 million of child care services
appreciate if answer is typewritten
Which of the following would be directly counted in GDP in 2020? Group of answer choices Kitchen cabinets built by Adam and installed in his brand new home. Kitchen cabinets purchased from Home Depot in 2020 to be installed in a house built in 1997. Kitchen cabinets built in 2000, extracted from the 2000 home, and installed in a farm house built in 1950. Kitchen cabinets built in 2000, extracted from the 2000 home, and installed in a brand-new country-style home. Flag question: Question 20
Tom is an organic gardener. For several years, he produced only for his own consumption. Last year, he sold his vegetables on Amazon directly to consumers. This year, he sold all of his vegetables to a company producing organic vegetable soup. When is the value of Tom’s vegetables included in GDP? Select one: a. None of his production is included in GDP, since it is considered home production. b. Only when he sells his vegetable on Amazon (BLS is able to see this transaction) c. When he sells his vegetables at the farmer's market and when he sells the vegetables to the organic soup company. d. Only when he sells his vegetables to the organic soup company.
Can you do g,h,I,j
look at this (Links https://www.cbsnews.com/news/why-gdp-fails-as-a-measure-of-well-being/) article published by CBS News. Do you agree with the author's assessment that GDP fails to measure well being? Why (or why not)? Are there things that contribute to your well-being and happiness but are excluded from the calculation of GDP? Share an example and describe why it might be excluded from the GDP calculation.