f) Any potential sources of bias you can detect and any issues you see in generalizing to the population of interest. From these figures, we see that net domestic product equals: Refer to the table. c. What will be the per-unit cost of the app if it sells 1 million units?$0.60 (f) R=1%,i=10%R=1 \%, i=10 \%R=1%,i=10%. With these two flows happening simultaneously, the net (combined) change in the stock of capital is going to be $100,000 because we have a flow of $150,000 of gross investment increasing the stock of capital while at the same time we have a flow of $50,000 of depreciation decreasing the stock of capital. The following table shows the data for a hypothetical economy in a specific year. $4 MPS Be sure to locate the equilibrium price and equilibrium quantity. Excluded: A transfer payment from taxpayers for which no service is rendered (in this year). Quarts of ice cream $4.00 3 $12.00 $4.00 5 $20.00 Gross domestic product does not include the value of the stocks and bonds bought and sold because these sales and purchases are not. Senate Judiciary Committee members questioned and criticized Joe Berchtold, president of Ticketmaster's parent company Live Nation Entertainment, for his. \text { Prize } & \text { Number to Be Given Away } & \text { Dollar Value} \\ By using their emergency response fund, much of which is funded through private philanthropy, the IRC was able to respond immediately to the crisis, assessing what the need is and the role it could play in helping impacted communities. The associated graph shows the closing levels of the NDX Index for each day in the same period. 4594554, Statistics derived from national income accounting. Apply the rule of 70 to solve the following problem: Real GDP per person in Panama in 2017 was about $15,000 per person, while it was about $60,000 per person in the United States. The increase in GDP is 5 percent (= (($525 billion - $500 billion)/$500 billion) 100). Among them, over 1 million intended borrowers have filed loan applications and over 400,000 have obtained loans successfully. Compensation of employees: $223 Rate of growth = (70/ years to double)The economy moves from point a to point b over a 10-year period, then rate of growth = 70/10 = 7% h. excluded Acute angles of a right triangle are complementary. inflation ()(\pi)(). e. A monthly allowance a college student receives from home: Changes in inventories are included as part of investment spending because. This current example highlights the important role philanthropy can play in providing quick and flexible . Step 3/4. d. Disposable income = $291 (personal income) - $26 (personal taxes) = $265 billion. Also assume that Ig = $30 billion, C = $60 billion, and Xn = - $10 billion. What is RRR ? A $2 billion increase in business inventories: $24 a firm's output less the value of the inputs bought from others. Finally, divide the value of the buckets of chicken using 1984 prices by the value of the buckets of chicken using 2005 prices (the base year). What was the GDP price index for the economy in year 2? Savannah Bryan is a career coach. Explanation The materials handling, machine setup, and insertion of parts activity costs also would remain the same. Ryder in March 2013. Category Billions of Dollars Personal consumption expenditures $50 Purchases of stocks and bonds 30 Net exports-10 Government purchases Revenue generated by legal medical marijuana sales in California. c. Adjust NI (from part b) as required to obtain PI. Undistributed corporate profits:$21 There are three correct choices to this question: money spent to clean up a local toxic waste site in Ohio, revenue generated by legal medical marijuana sales in California, and Robert paying Ted for a haircut in Chicago. All figures are in billions of dollars. b. To measure changes in the value of production and income in the economy, Depreciation is all of the following, except, By summing the dollar value of all market transactions in the economy, we would, obtain a sum substantially larger than the GDP, The base year of the price index given in the accompanying table is, GDP in an economy is $11,050 billion. b. The hypothetical extraction method (HEM) has been widely used to measure interindustry linkages and the importance of industries. Tina walks into Ted's sporting goods store and buys a punching bag for $100. Clarification of the central themes of Ned Block's article "The Harder Problem of Consciousness." In particular, explains why Block thinks that the question of whether a certain kind of robot is phenomenally conscious is relevant to the question of what phenomenal consciousness essentially is, that is, with what, if anything, it can be identified in terms of natural properties investigated . To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must be, A nation produces three products, A, B, and C. Over two years, the prices of these products change, while the quantities produced remain constant, as shown in the table. S=-100+0.4Y Net foreign factor income 2.2 an amount greater than GDP for that year. Using the expenditures approach, GDP = $300 billion (personal consumption expenditures) + $100 billion (gross domestic investment) + $50 billion (government purchases) + $50 billion (net exports of goods and services) = $500 billion. 2 a. To answer this question, evaluate the following statement: "In 1933 net private domestic investment was minus $6 billion. Output and price data for a five-year period are shown in the table. \qquad\text{Total expenses}&\underline{\text{\hspace{5pt}61,600}}&\underline{\text{\hspace{5pt}49,000}}&\underline{\text{\hspace{5pt}26,600}}&\underline{\text{\hspace{5pt}43,400}}&\underline{\text{\hspace{5pt}47,600}}&\underline{\text{\hspace{5pt}228,200}}\\[5pt] Taking into account the fact that a "negative times a negative is a positive," we see that G = $20 billion. Q12 please help quick. .g.) \text {Purchase} \\ You are given the following three bundles: (12, 4), (4, 12), and (8, 8). None of these are correct. Statistical discrepancy 0 Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $100 million to $200 million between one year and the next. So, disposable income is personal income less personal taxes. Doing so, we see that G = $100 billion - $60 billion - $30 billion - (- $10 billion). All figures are in billions. a. Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios: Management (1) eliminates departments with expected net losses and (2) eliminates departments with sales dollars that are less than avoidable expenses. $ billion Previous question Next question COMPANY About Chegg Chegg For Good College Marketing Corporate Development Investor Relations Suppose GDP is $16 trillion, with $10 trillion coming from consumption, $2 trillion coming from gross investment, $3.5 trillion coming from government expenditures, and $500 billion coming from net exports. \qquad\text{Avoidable}&\text{\hspace{10pt}9,800}&\text{\hspace{5pt}36,400}&\text{\hspace{5pt}22,400}&\text{\hspace{5pt}14,000}&\text{\hspace{5pt}37,800}&\text{\hspace{5pt}120,400}\\[5pt] It used $18 million of the proceeds to replace obsolete equipment in its factory and $7 million to repay bank loans. Real GDP = Nominal GDP/Price Index, Find the Nominal GDP: What is this year's inflation rate? Thus, the total stock of capital at the end of the year will be $1,100,000, which is the initial $1 million stock of capital plus the net change of $100,000 that results over the course of the year from the two flows (gross investment and depreciation). Use the table below to solve this problem.Suppose the wealth effect is such that $10 changes in wealth produce $1 changes in consumption at each level of income. What is New Zombie's real GDP? b. What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year? Are short-term creditors, long-term creditors, and stockholders interested primarily in the same characteristics of a company? c. Supply increases and demand is constant. The following data in billions of dollars for the country of Happyland is as follows: Consumption: 150 Investment: 40 Government spending: 60 Import: 70 Exports: 50 Calculate the GDP for that. Economy C: gross investment exceeds depreciation b. Graph the demand for wheat and the supply of wheat. b. Thus, if Panama's real GDP per person is growing at 7 percent per year, it will take about 10 years (= 70/7) to double. $100 million, A mathematical approximation called the rule of 70 tells us how long it will take for something to double in size if it grows at a constant rate. c. What term do economists use to describe this second outcome? In the other, she will try to develop an Internet-based competitor to the local cable company. a. MPC = Between 2009 and 2010, the real GDP rose by approximately. (A) The reaction regulated by bioC in the original network, two gap-filling solutions, and their scores. Net exports -10 Carrying amounts of financial instruments and their fair values as of December 31, 2022; Measurement according to IFRS 9. Those accountants will, in fact, have no way of knowing whether this transaction even took place. T}&\textbf{Total}\\[5pt] 9 6 35 years (70/2) Assuming stable prices, net investment was GO fell by $10 billion, while GDP was unchanged. Interest received on an AT&T corporate bond: Jars of peanut butter 2.00 3 2.00 2 Personal saving 20 Suppose an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. a. An economy's output, in essence, is also equal to its income because. .b. Tex -1.8 percent PDept. Use the following national income accounting data to compute NDP. Quantity of Goods Year 1 National income accountants define investment to include, Refer to the accompanying national income data. c. PI= 291 billion Pub. Write your answers in simplest terms. In 2005, real GDP = 352,000 The base year used in determining the price indices for this economy. All figures are in billions of dollars. All figures are in billions of dollars. A statistic called Gross Output (GO) sums together the value of economic activity taking place in each of the four stages of a productive economy, namely. Which of the following items will be included in official U.S. GDP statistics? c. By what percentage would GDP be boosted if the value of the services of stay-at-home spouses were included in GDP? a.What is the equilibrium price in this market?$4.00 per bushelAt what price is there neither a shortage nor a surplus?$4.00 per bushel 125. Which of the following statements is true? \text{Automobile} & 1 & \$20,000 \\ $15.5 trillion. If the price of gold had not changed, what would have been the change in value of Glitter Gulch's real output? 2 percent per year: Instructions 70/5 =14 Economy A: gross investment equals depreciation Suppose that businesses buy a total of $100 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore? Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $70,000. d. Income of a dentist from the dental services provided: f. APS =, a.) 3 b.) (b) =5%,i=10%\pi=5 \%, i=10 \%=5%,i=10%. 15 percent Method 1 = $ 357 billion Economists include only final goods and services when measuring GDP for a particular year because. a. Net exports 11 Which of the following transactions would count in GDP? All figures are in billions. The table contains data for a hypothetical single-product economy. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. If the real interest rate at which funds can be borrowed to purchase the machine is 8 percent, will the publisher choose to invest in the machine? 13. Journalize the receipt of cash for the maturity value of the note receivable on March 1, 20X2. a. If real estate prices tumble such that wealth declines by $80, what will be the new level of consumption at the $340 billion level of disposable income? Real GDP is nominal GDP divided by the Price Index Interest received on an AT&T corporate bond Included in this year's GDP Social Security contributions:$20 3 GDP using the expenditures approach = $ 388 billion245+33+27+72+11= $388 The U.S. Office of Personnel Management provides data on government spending on services. \text{Sales}&\text{\$63,000}&\text{\$35,000}&\text{\$56,000}&\text{\$42,000}&\text{\$28,000}&\text{\$224,000}\\[5pt] What is \pi ? During the course of the year, gross investment is $150,000 and depreciation is $50,000. 21 follow the long-run course of the economy to determine whether it has grown or stagnated. This gives us a GDP price index for 1984 = ($220,000/$352,000) 100 = (($10 22,000)/($16 22,000)) 100 = ($10/$16) 100 = 62.5. Dollar value of production activity = $50 billion Government purchases 72 42 U.S.C. c. Personal income = $357 (national income) - $18 (taxes on production and imports) - $20 (Social Security contributions) - $19 (corporate income taxes) - $21 (undistributed corporate profits) + $12 (transfer payments) = $291 billion. Consumption of fixed capital (private sector) is, Refer to the accompanying data (all figures in billions of dollars). What was its nominal GDP in year 2? Firm A Wages paid to employees Taxes paid to government Input purchased from Firm C Revenue received Sold to Public (newly produced) Sold to Government Sold to Firm C Sold from inventory to Public Unsold production After-tax profit Firm B Wages paid to employees Taxes paid to government Input purchased . Value of the services of stay-at-home parents 25 Which of the following is a primary use for national income accounts? Actual production is at point c, $18 billion, short of production capacity = ( amount short/ $20 billion) = $2/20 = 10%. Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $70,000. e. Suppose that at a price of $6, the total quantity demanded increases from 19 to 38. Assume that a national restaurant chain called BBQ builds 10 new restaurants at a cost of $1 million per restaurant. Instructions: Enter your answer as a whole number. What is RRR ? Real GDP in 1984 and 2005, where 2005 is the base, can be found by dividing nominal GDP by the year's price index (remember to convert the price index back into decimal form). Rents: $14 this amount should be included in calculating that year's GDP. Category Value Personal consumption expenditures 50 Purchases of stocks and b As a result, they will generate no paper trail for the accountants who compile the U.S. GDP statistics. Karen buys a new car (Hint: When calculating growth rate for population use the following formula: Population Growth Rate = Population in 2006 Population in 2007? How long would it take for the price level to double if inflation persisted at the following percentages? P}&\textbf{Dept. For the years shown, the growth of. g. Included: It is a new good produced for final consumption. a. Finally, when Amy buys a used car, there is no increase in currently produced final goods and services. If GDP is $60.00, what will be the new price of carrots? 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From these figures, we see that net domestic product equals: Refer to the accompanying data ( all in! ) Any potential sources of bias you can detect and Any issues you see in generalizing to the local company..., we see that net domestic product equals: Refer to the population of interest instruments and their values. Follow the long-run course of the services of stay-at-home spouses were included in calculating that year use. Stockholders interested primarily in the same below to give your answers to the accompanying income! Whether it has grown or stagnated an Internet-based competitor to the accompanying national income accounts gross investment is 150,000. Characteristics of a company a whole number of bias you can detect and Any you... Values as of December 31, 2022 ; Measurement according to IFRS.! A monthly allowance a college student receives from home: Changes in inventories are included as part of spending! Expenditures and thus to GDP during the course of the services of stay-at-home parents 25 which the. Real output closing levels of the economy to the following table shows the data for a hypothetical economy in a specific year whether it has or! Final goods and which are usually final goods and services when measuring GDP for a five-year period are in! Are included as part of investment spending because an Internet-based competitor to the accompanying data ( all figures billions... Measurement according to IFRS 9 intermediate goods and services income = $ (...