The following diagram shows select information for an economy made up of three industries for a particularly year. i+w+r+p=0 m O $330 billion O $600 billion Onone is correct i+w+r+p O $400 billion Industry 2 O $270 billion i+w+r+p S m = 100 m 90 Industry 1 i=interest; w=wages/salaries; r = rent; p = profit; m = intermediate inputs; s= market value of total industry output; f = market value of industry output sold as 'final products. Note: All values are in billions of dollars. f=160 Industry 3 S What is the gross domestic product (at factor prices) for this economy? 10 20 f=0 -f=40 30

The following diagram shows select information for an economy made up of three industries for a particularly year. i+w+r+p=0 m O $330 billion O $600 billion Onone is correct i+w+r+p O $400 billion Industry 2 O $270 billion i+w+r+p S m = 100 m 90 Industry 1 i=interest; w=wages/salaries; r = rent; p = profit; m = intermediate inputs; s= market value of total industry output; f = market value of industry output sold as 'final products. Note: All values are in billions of dollars. f=160 Industry 3 S What is the gross domestic product (at factor prices) for this economy? 10 20 f=0 -f=40 30

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Time left 0:58: There is an earthquake of magnitude 7.5. What would be the impact on the country's production function? Select one: a. movement downward along the same curve O b. shift inwards Oc. remain unchanged O d. movement upwards along the same curve O e. shift outwards Next page s page
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Imagine the GDP per capita of a country doubles every one hundred years. What would the shape of a linear-scale graph and a ratio- scale graph be? Select one or more: O a. Linear scale: an upward-sloping Ratio scale: an upward-sloping curve with increasing slope (called straight line convex shape) O b. Ratio scale: a straight horizontal line Linear scale: an upward-sloping straight line Ratio scale: an upward-sloping curve with decreasing slope (called O C. Linear scale: an upward-sloping straight line concave shape) O d. Linear scale: an upward-sloping Ratio scale: an upward-sloping convex curve convex curve
2. Refer to the data provided in the Table below to answer the following questions. Units of Variable Inputs Required K 2 1 Production 1 unit of output 2 units of output 3 units of output Using Technique A B A B A B 3 2 L 2 3 3 6 Assume the price of labor is $5 and the price of capital is $10. What production technique will be used to produce the one unit of output? Two? Three?
Dead capital is Select one: O A. useful only if employed in a labor-intensive production process. O B. useful only if employed in a capital-intensive production process. O C. unlikely to have any productive use. O D. unlikely to be applied to its most efficient use.
12 L'. ĀK2 L2 where the productivity parameter is equal to 2 . How many units of output can be produced with 25 units of Consider an economy characterized by the production function Y = capital and 36 workers? 20 Using the same production function and factor inputs (capital and labor) as in the previous question, compute the marginal product of labor. Round your answer to the nearest hundredth after the decimal point. 30
Shows in table how the average costs of production for semiconductors(the“chips”incomputermemories) change as the quantity of semiconductors built at that factory increases. a. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? b. If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? c. Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
How do increases in technology affect the aggregate production funclion? O A. With better technology, the aggregate production function shifts down because fewer workers are neoded O B. Even with technology increases, the aggregate production function will remain constant unless the technology increases are matched by increases in the physical capital stock. O C. As technology increases, diminishing marginal product sets in such that each unit of technology produces less output O D. With increases in technology, the aggregate production function shitfts up, indicating more output is produced from the same amount of inputs.
32. Consider the production function of widget: Q = 28K0.8 L0.4, where Q is units of output per month. K is hours of capital and L is hours of labour. Capital can be rented at $60 per hour and labour can be hired at $22 per hour. What is the maximum level of output for a monthly production budget of $20000? Answer: ______________ units.
The basic difference between macroeconomics and microeconomics is: O microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy O microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms O microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment
Question 1: Assume a firm wants to achieve an output level of 5400 units. This is the firm's production for that level of production: 5400 25K0.6 L0.4 Where Kis capital inputs and Lis labor inputs. Answer a) Yes or no, is this a level curve? b) what is dK2 dL
公2 60 R %24 4. # 3 QUESTION 8 The nearest and largest trading partner with the United States is: OA. Canada. OB. Mexico C. Germany. OD.China. QUESTION 9 Given decreasing returns to scale between labor input and output, an increase of 10% in labor will increase output E OA. More than 10%. OB. 10%. OC. 100% OD.less than 10%. QUESTION 10 MAR 12 tv MacBook Ar 08 F4 F5 F7 F8 5. ) 80