ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 18, Problem 2.5P
To determine
The reasons and the most important factors for the difference in household incomes.
Concept Introduction:
Household income: It refers to the combined income from all people living together in a specific household. The income includes not only the salaries but also the income from any business or investments. The members of the household are not required to be related to one another to be the part of the household.
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- Suppose seafood price and quantity data for the years 2000 and 2009 follow. Use 2000 as the base period.Seafood 2000 Qty. (lb) | 2000 Price ($/lb) | 2009 Price ($/lb)Halibut 75,090 1.91 2.33Lobster 83,080 3.72 3.09Tuna 50,779 1.87 1.97(a)Compute a price relative for each type of seafood. (Round your answers to one decimal place.)Seafood Price RelativeHalibut 122.0 Lobster _________ Tuna 105.3 (b)Compute a weighted aggregate price index for the seafood catch. (Round your answer to one decimal place.)I2009 = ___________ Comment on the change in seafood prices over the nine-year period. (Enter your percentage as a positive value. Round your answer to one decimal place.)Seafood prices have decreased by ______ % over the 9-year period according to the index.arrow_forwardQ)Suppose you earned $80,000 in 2018 and the CPI value for the year was 244. Calculate your 2018 income in 2000 dollars. The CPI value for the year 2000 was 171.arrow_forwardThe value of net factor income from abroad is $900 million and the value of national income is $5000 million Calculate the value of NDPFCarrow_forward
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