Concept Introduction Poverty: Poverty refers to a state of living by a person under which she/he has insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing. Consumer Price Index (CPI): This refers to the index, which shows the change in the price of a product over a period of time, purchased by a consumer or household. Gross Domestic Product (GDP): This refers to a value that measures the size of the economy of a country. It determines the value of all the goods and services which are produced in a year in the country.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 11, Problem 1P

To determine

Concept Introduction

Poverty: Poverty refers to a state of living by a person under which she/he has insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Consumer Price Index (CPI): This refers to the index, which shows the change in the price of a product over a period of time, purchased by a consumer or household.

Gross Domestic Product (GDP): This refers to a value that measures the size of the economy of a country. It determines the value of all the goods and services which are produced in a year in the country.

Expert Solution & Answer

Explanation of Solution

a. The factor by which the poverty threshold has increased from 1983 to 2013.

Given,
Poverty threshold in 1983 is $5,180.
Poverty threshold in 2013 is $11,490.

The poverty threshold is a measure which determines the population which is considered poor in a country. The population that falls under the poverty threshold is labeled as poor.

The formula to calculate an increase in poverty threshold is as follows:

EBK ESSENTIALS OF ECONOMICS, Chapter 11, Problem 1P , additional homework tip 1

Substitute $11,490 for poverty threshold in 2013 and $5,180 for poverty threshold in 1983 in the above formula:

EBK ESSENTIALS OF ECONOMICS, Chapter 11, Problem 1P , additional homework tip 2

The threshold has increased to 221.81% in 2013 from 1983, hence it can be said that the threshold has almost doubled.

Conclusion:

Thus, the threshold is doubled between 1983 and 2013.

b. The factor by which the CPI has increased from 1983 to 2013.

Given,
CPI in 1983 is 99.6.
CPI in 2013 is 233.

The formula to calculate an increase in CPI is as follows:

EBK ESSENTIALS OF ECONOMICS, Chapter 11, Problem 1P , additional homework tip 3

Substitute 233 for CPI in 2013 and 99.6 for CPI in 1983 in the above formula:

EBK ESSENTIALS OF ECONOMICS, Chapter 11, Problem 1P , additional homework tip 4

The CPI has increased to 233.94% in 2013 from 1983, hence it can be said that the CPI has almost doubled.

Conclusion:

Thus, the CPI is doubled between 1983 and 2013.

c. The factor by which the GDP has increased from 1983 to 2013.

Given,
GDP in 1983 is $15,525.
GDP in 2013 is $53,086.

The formula to calculate an increase in GDP is as follows:

EBK ESSENTIALS OF ECONOMICS, Chapter 11, Problem 1P , additional homework tip 5

Substitute $53,086 for GDP in 2013 and $15,525 for GDP in 1983 in the above formula:

EBK ESSENTIALS OF ECONOMICS, Chapter 11, Problem 1P , additional homework tip 6

The GDP has increased to 341.94% in 2013 from 1983, hence it can be said that the GDP has almost tripled.

Conclusion:

Thus, the GDP is tripled between 1983 and 2013.

d. Effect on economically poor people over the years.

It can be seen in parts a, b and c that between 1983 and 2013, the poverty threshold and CPI has doubled, whereas the GDP of the country has tripled.

This implies that there is less effect on the poverty and threshold while the incomes of people have risen during the period by three times.

Hence, the poor is not much affected as the rise in incomes is more than the rise in poverty and the rise in prices of commodities.

Conclusion:

Thus, the poor are less affected as compared to the GDP of a country.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

QUESTION 2 2.1 [30] Mariana, a researcher at the World Health Organisation (WHO), collects information on weekly study hours (HOURS) and blood pressure level when writing a test (BLOOD) from a sample of university students across the country, before running the regression BLOOD = f(STUDY). She collects data from 5 students as listed below: X (STUDY) 2 Y (BLOOD) 4 6 8 10 141 138 133 127 123 2.1.1 By using the OLS method and the information above derive the values for parameters B1 and B2. 2.1.2 Derive the RSS (sum of squares for the residuals). 2.1.3 Hence, calculate ô 2.2 2.3 (6) (3) Further, she replicates her study and collects data from 122 students from a rival university. She derives the residuals followed by computing skewness (S) equals -1.25 and kurtosis (K) equals 8.25 for the rival university data. Conduct the Jacque-Bera test of normality at a = 0.05. (5) Upon tasked with deriving estimates of ẞ1, B2, 82 and the standard errors (SE) of ẞ1 and B₂ for the replicated data.…

If you were put in charge of ensuring that the mining industry in canada becomes more sustainable over the course of the next decade (2025-2035), how would you approach this? Come up with (at least) one resolution for each of the 4 major types of conflict: social, environmental, economic, and political

How is the mining industry related to other Canadian labour industries? Choose one other industry, (I chose Forestry)and describe how it is related to the mining industry. How do the two industries work together? Do they ever conflict, or do they work well together?

Answer 2

Question

Chapter 11, Problem 1P

To determine

Concept Introduction

Poverty: Poverty refers to a state of living by a person under which she/he has insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Consumer Price Index (CPI): This refers to the index, which shows the change in the price of a product over a period of time, purchased by a consumer or household.

Gross Domestic Product (GDP): This refers to a value that measures the size of the economy of a country. It determines the value of all the goods and services which are produced in a year in the country.

Expert Solution & Answer

Explanation of Solution

a. The factor by which the poverty threshold has increased from 1983 to 2013.

Given,
Poverty threshold in 1983 is $5,180.
Poverty threshold in 2013 is $11,490.

The poverty threshold is a measure which determines the population which is considered poor in a country. The population that falls under the poverty threshold is labeled as poor.

The formula to calculate an increase in poverty threshold is as follows:

Substitute $11,490 for poverty threshold in 2013 and $5,180 for poverty threshold in 1983 in the above formula:

The threshold has increased to 221.81% in 2013 from 1983, hence it can be said that the threshold has almost doubled.

Conclusion:

Thus, the threshold is doubled between 1983 and 2013.

b. The factor by which the CPI has increased from 1983 to 2013.

Given,
CPI in 1983 is 99.6.
CPI in 2013 is 233.

The formula to calculate an increase in CPI is as follows:

Substitute 233 for CPI in 2013 and 99.6 for CPI in 1983 in the above formula:

The CPI has increased to 233.94% in 2013 from 1983, hence it can be said that the CPI has almost doubled.

Conclusion:

Thus, the CPI is doubled between 1983 and 2013.

c. The factor by which the GDP has increased from 1983 to 2013.

Given,
GDP in 1983 is $15,525.
GDP in 2013 is $53,086.

The formula to calculate an increase in GDP is as follows:

Substitute $53,086 for GDP in 2013 and $15,525 for GDP in 1983 in the above formula:

The GDP has increased to 341.94% in 2013 from 1983, hence it can be said that the GDP has almost tripled.

Conclusion:

Thus, the GDP is tripled between 1983 and 2013.

d. Effect on economically poor people over the years.

It can be seen in parts a, b and c that between 1983 and 2013, the poverty threshold and CPI has doubled, whereas the GDP of the country has tripled.

This implies that there is less effect on the poverty and threshold while the incomes of people have risen during the period by three times.

Hence, the poor is not much affected as the rise in incomes is more than the rise in poverty and the rise in prices of commodities.

Conclusion:

Thus, the poor are less affected as compared to the GDP of a country.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 1P

To determine

Concept Introduction

Poverty: Poverty refers to a state of living by a person under which she/he has insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Consumer Price Index (CPI): This refers to the index, which shows the change in the price of a product over a period of time, purchased by a consumer or household.

Gross Domestic Product (GDP): This refers to a value that measures the size of the economy of a country. It determines the value of all the goods and services which are produced in a year in the country.

Expert Solution & Answer

Explanation of Solution

a. The factor by which the poverty threshold has increased from 1983 to 2013.

Given,
Poverty threshold in 1983 is $5,180.
Poverty threshold in 2013 is $11,490.

The poverty threshold is a measure which determines the population which is considered poor in a country. The population that falls under the poverty threshold is labeled as poor.

The formula to calculate an increase in poverty threshold is as follows:

Substitute $11,490 for poverty threshold in 2013 and $5,180 for poverty threshold in 1983 in the above formula:

The threshold has increased to 221.81% in 2013 from 1983, hence it can be said that the threshold has almost doubled.

Conclusion:

Thus, the threshold is doubled between 1983 and 2013.

b. The factor by which the CPI has increased from 1983 to 2013.

Given,
CPI in 1983 is 99.6.
CPI in 2013 is 233.

The formula to calculate an increase in CPI is as follows:

Substitute 233 for CPI in 2013 and 99.6 for CPI in 1983 in the above formula:

The CPI has increased to 233.94% in 2013 from 1983, hence it can be said that the CPI has almost doubled.

Conclusion:

Thus, the CPI is doubled between 1983 and 2013.

c. The factor by which the GDP has increased from 1983 to 2013.

Given,
GDP in 1983 is $15,525.
GDP in 2013 is $53,086.

The formula to calculate an increase in GDP is as follows:

Substitute $53,086 for GDP in 2013 and $15,525 for GDP in 1983 in the above formula:

The GDP has increased to 341.94% in 2013 from 1983, hence it can be said that the GDP has almost tripled.

Conclusion:

Thus, the GDP is tripled between 1983 and 2013.

d. Effect on economically poor people over the years.

It can be seen in parts a, b and c that between 1983 and 2013, the poverty threshold and CPI has doubled, whereas the GDP of the country has tripled.

This implies that there is less effect on the poverty and threshold while the incomes of people have risen during the period by three times.

Hence, the poor is not much affected as the rise in incomes is more than the rise in poverty and the rise in prices of commodities.

Conclusion:

Thus, the poor are less affected as compared to the GDP of a country.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 1P

To determine

Concept Introduction

Poverty: Poverty refers to a state of living by a person under which she/he has insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Consumer Price Index (CPI): This refers to the index, which shows the change in the price of a product over a period of time, purchased by a consumer or household.

Gross Domestic Product (GDP): This refers to a value that measures the size of the economy of a country. It determines the value of all the goods and services which are produced in a year in the country.

Expert Solution & Answer

Explanation of Solution

a. The factor by which the poverty threshold has increased from 1983 to 2013.

Given,
Poverty threshold in 1983 is $5,180.
Poverty threshold in 2013 is $11,490.

The poverty threshold is a measure which determines the population which is considered poor in a country. The population that falls under the poverty threshold is labeled as poor.

The formula to calculate an increase in poverty threshold is as follows:

Substitute $11,490 for poverty threshold in 2013 and $5,180 for poverty threshold in 1983 in the above formula:

The threshold has increased to 221.81% in 2013 from 1983, hence it can be said that the threshold has almost doubled.

Conclusion:

Thus, the threshold is doubled between 1983 and 2013.

b. The factor by which the CPI has increased from 1983 to 2013.

Given,
CPI in 1983 is 99.6.
CPI in 2013 is 233.

The formula to calculate an increase in CPI is as follows:

Substitute 233 for CPI in 2013 and 99.6 for CPI in 1983 in the above formula:

The CPI has increased to 233.94% in 2013 from 1983, hence it can be said that the CPI has almost doubled.

Conclusion:

Thus, the CPI is doubled between 1983 and 2013.

c. The factor by which the GDP has increased from 1983 to 2013.

Given,
GDP in 1983 is $15,525.
GDP in 2013 is $53,086.

The formula to calculate an increase in GDP is as follows:

Substitute $53,086 for GDP in 2013 and $15,525 for GDP in 1983 in the above formula:

The GDP has increased to 341.94% in 2013 from 1983, hence it can be said that the GDP has almost tripled.

Conclusion:

Thus, the GDP is tripled between 1983 and 2013.

d. Effect on economically poor people over the years.

It can be seen in parts a, b and c that between 1983 and 2013, the poverty threshold and CPI has doubled, whereas the GDP of the country has tripled.

This implies that there is less effect on the poverty and threshold while the incomes of people have risen during the period by three times.

Hence, the poor is not much affected as the rise in incomes is more than the rise in poverty and the rise in prices of commodities.

Conclusion:

Thus, the poor are less affected as compared to the GDP of a country.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1P

To determine

Concept Introduction

Poverty: Poverty refers to a state of living by a person under which she/he has insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Consumer Price Index (CPI): This refers to the index, which shows the change in the price of a product over a period of time, purchased by a consumer or household.

Gross Domestic Product (GDP): This refers to a value that measures the size of the economy of a country. It determines the value of all the goods and services which are produced in a year in the country.

Expert Solution & Answer

Explanation of Solution

a. The factor by which the poverty threshold has increased from 1983 to 2013.

Given,
Poverty threshold in 1983 is $5,180.
Poverty threshold in 2013 is $11,490.

The poverty threshold is a measure which determines the population which is considered poor in a country. The population that falls under the poverty threshold is labeled as poor.

The formula to calculate an increase in poverty threshold is as follows:

Substitute $11,490 for poverty threshold in 2013 and $5,180 for poverty threshold in 1983 in the above formula:

The threshold has increased to 221.81% in 2013 from 1983, hence it can be said that the threshold has almost doubled.

Conclusion:

Thus, the threshold is doubled between 1983 and 2013.

b. The factor by which the CPI has increased from 1983 to 2013.

Given,
CPI in 1983 is 99.6.
CPI in 2013 is 233.

The formula to calculate an increase in CPI is as follows:

Substitute 233 for CPI in 2013 and 99.6 for CPI in 1983 in the above formula:

The CPI has increased to 233.94% in 2013 from 1983, hence it can be said that the CPI has almost doubled.

Conclusion:

Thus, the CPI is doubled between 1983 and 2013.

c. The factor by which the GDP has increased from 1983 to 2013.

Given,
GDP in 1983 is $15,525.
GDP in 2013 is $53,086.

The formula to calculate an increase in GDP is as follows:

Substitute $53,086 for GDP in 2013 and $15,525 for GDP in 1983 in the above formula:

The GDP has increased to 341.94% in 2013 from 1983, hence it can be said that the GDP has almost tripled.

Conclusion:

Thus, the GDP is tripled between 1983 and 2013.

d. Effect on economically poor people over the years.

It can be seen in parts a, b and c that between 1983 and 2013, the poverty threshold and CPI has doubled, whereas the GDP of the country has tripled.

This implies that there is less effect on the poverty and threshold while the incomes of people have risen during the period by three times.

Hence, the poor is not much affected as the rise in incomes is more than the rise in poverty and the rise in prices of commodities.

Conclusion:

Thus, the poor are less affected as compared to the GDP of a country.

Answer 6

Chapter 11, Problem 1P

To determine

Concept Introduction

Poverty: Poverty refers to a state of living by a person under which she/he has insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Consumer Price Index (CPI): This refers to the index, which shows the change in the price of a product over a period of time, purchased by a consumer or household.

Gross Domestic Product (GDP): This refers to a value that measures the size of the economy of a country. It determines the value of all the goods and services which are produced in a year in the country.

Expert Solution & Answer

Explanation of Solution

a. The factor by which the poverty threshold has increased from 1983 to 2013.

Given,
Poverty threshold in 1983 is $5,180.
Poverty threshold in 2013 is $11,490.

The poverty threshold is a measure which determines the population which is considered poor in a country. The population that falls under the poverty threshold is labeled as poor.

The formula to calculate an increase in poverty threshold is as follows:

Substitute $11,490 for poverty threshold in 2013 and $5,180 for poverty threshold in 1983 in the above formula:

The threshold has increased to 221.81% in 2013 from 1983, hence it can be said that the threshold has almost doubled.

Conclusion:

Thus, the threshold is doubled between 1983 and 2013.

b. The factor by which the CPI has increased from 1983 to 2013.

Given,
CPI in 1983 is 99.6.
CPI in 2013 is 233.

The formula to calculate an increase in CPI is as follows:

Substitute 233 for CPI in 2013 and 99.6 for CPI in 1983 in the above formula:

The CPI has increased to 233.94% in 2013 from 1983, hence it can be said that the CPI has almost doubled.

Conclusion:

Thus, the CPI is doubled between 1983 and 2013.

c. The factor by which the GDP has increased from 1983 to 2013.

Given,
GDP in 1983 is $15,525.
GDP in 2013 is $53,086.

The formula to calculate an increase in GDP is as follows:

Substitute $53,086 for GDP in 2013 and $15,525 for GDP in 1983 in the above formula:

The GDP has increased to 341.94% in 2013 from 1983, hence it can be said that the GDP has almost tripled.

Conclusion:

Thus, the GDP is tripled between 1983 and 2013.

d. Effect on economically poor people over the years.

It can be seen in parts a, b and c that between 1983 and 2013, the poverty threshold and CPI has doubled, whereas the GDP of the country has tripled.

This implies that there is less effect on the poverty and threshold while the incomes of people have risen during the period by three times.

Hence, the poor is not much affected as the rise in incomes is more than the rise in poverty and the rise in prices of commodities.

Conclusion:

Thus, the poor are less affected as compared to the GDP of a country.

Answer 7

Chapter 11, Problem 1P

To determine

Concept Introduction

Poverty: Poverty refers to a state of living by a person under which she/he has insufficient resources to satisfy the basic needs of living, such as food, shelter and clothing.

Consumer Price Index (CPI): This refers to the index, which shows the change in the price of a product over a period of time, purchased by a consumer or household.

Gross Domestic Product (GDP): This refers to a value that measures the size of the economy of a country. It determines the value of all the goods and services which are produced in a year in the country.

Answer 8

Expert Solution & Answer

Explanation of Solution

a. The factor by which the poverty threshold has increased from 1983 to 2013.

Given,
Poverty threshold in 1983 is $5,180.
Poverty threshold in 2013 is $11,490.

The poverty threshold is a measure which determines the population which is considered poor in a country. The population that falls under the poverty threshold is labeled as poor.

The formula to calculate an increase in poverty threshold is as follows:

Substitute $11,490 for poverty threshold in 2013 and $5,180 for poverty threshold in 1983 in the above formula:

The threshold has increased to 221.81% in 2013 from 1983, hence it can be said that the threshold has almost doubled.

Conclusion:

Thus, the threshold is doubled between 1983 and 2013.

b. The factor by which the CPI has increased from 1983 to 2013.

Given,
CPI in 1983 is 99.6.
CPI in 2013 is 233.

The formula to calculate an increase in CPI is as follows:

Substitute 233 for CPI in 2013 and 99.6 for CPI in 1983 in the above formula:

The CPI has increased to 233.94% in 2013 from 1983, hence it can be said that the CPI has almost doubled.

Conclusion:

Thus, the CPI is doubled between 1983 and 2013.

c. The factor by which the GDP has increased from 1983 to 2013.

Given,
GDP in 1983 is $15,525.
GDP in 2013 is $53,086.

The formula to calculate an increase in GDP is as follows:

Substitute $53,086 for GDP in 2013 and $15,525 for GDP in 1983 in the above formula:

The GDP has increased to 341.94% in 2013 from 1983, hence it can be said that the GDP has almost tripled.

Conclusion:

Thus, the GDP is tripled between 1983 and 2013.

d. Effect on economically poor people over the years.

It can be seen in parts a, b and c that between 1983 and 2013, the poverty threshold and CPI has doubled, whereas the GDP of the country has tripled.

This implies that there is less effect on the poverty and threshold while the incomes of people have risen during the period by three times.

Hence, the poor is not much affected as the rise in incomes is more than the rise in poverty and the rise in prices of commodities.

Conclusion:

Thus, the poor are less affected as compared to the GDP of a country.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 11 - Prob. 1P Ch. 11 - Prob. 2P Ch. 11 - Prob. 3P Ch. 11 - Prob. 4P Ch. 11 - Prob. 5P Ch. 11 - Prob. 6P Ch. 11 - Prob. 7P Ch. 11 - Prob. 8P Ch. 11 - Prob. 9P

Explanation of Solution

Want to see more full solutions like this?

Chapter 11 Solutions