Classify the given items as final good or service or as an intermediate good or service.

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Answer 1

Question

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

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2. Suppose that a farmer has two ways to produce his crop. He can use a low-polluting technology with the marginal cost curve MCL or a high polluting technology with the marginal cost curve MCH. If the farmer uses the high-polluting technology, for each unit of quantity produced, one unit of pollution is also produced. Pollution causes pollution damages that are valued at $E per unit. The good produced can be sold in the market for $P per unit. P 1 MCH 0 Q₁ MCL Q2 E a. b. C. If there are no restrictions on the firm's choices, which technology will the farmer use and what quantity will he produce? Explain, referring to the area identified in the figure Given your response in part a, is it socially efficient for there to be no restriction on production? Explain, referring to the area identified in the figure If the government restricts production to Q1, what technology would the farmer choose? Would a socially efficient outcome be achieved? Explain, referring to the area identified in…

I need help in seeing how these are the answers. If you could please write down your steps so I can see how it's done please.

Suppose that a random sample of 216 twenty-year-old men is selected from a population and that their heights and weights are recorded. A regression of weight on height yields Weight = (-107.3628) + 4.2552 x Height, R2 = 0.875, SER = 11.0160 (2.3220) (0.3348) where Weight is measured in pounds and Height is measured in inches. A man has a late growth spurt and grows 1.6200 inches over the course of a year. Construct a confidence interval of 90% for the person's weight gain. The 90% confidence interval for the person's weight gain is ( ☐ ☐) (in pounds). (Round your responses to two decimal places.)

Answer 2

Question

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

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Answer 3

Question

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

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Answer 4

Question

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

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

Answer 5

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

Answer 6

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.

Answer 7

Chapter 4, Problem 1SPA

To determine

Classify the given items as final good or service or as an intermediate good or service.

Answer 8

Expert Solution & Answer

Explanation of Solution

The final goods are those used either for final consumption or for capital formation. On the other hand, the goods that are used in producing the final goods and services are called the intermediate goods.

Airline ticket bought by a student: The airline ticket is used for airline flights. Thus, the airline ticket is an intermediate good. This is part of the consumption expenditure.
New airplanes bought by southwest Airlines: The purchase of a new airplane can be treated as a final good. This is part of the investment expenditure.
Cheese bought by Domino’s: The Domino’s is one of the pizza shops in the market. Therefore, they purchase cheese for preparing pizzas. Thus, it is an intermediate good. This is part of consumption expenditure.
Purchase of a new phone: The purchase of a new phone is a final good. This is part of consumption expenditure.
New house bought by Bill Gates: The purchase of a new house is final good. This is part of an investment expenditure.