The money supply grew at a rate of from 2014 to 2015. b) Solve for the short-run cost function (, When the costs of a good are paid for by nonconsumers, _______ of the good is produced. Gross National Product (GNP) differs from U.S. All other trademarks and copyrights are the property of their respective owners. The following table shows the relationship between output and number of workers in the short run. Make sure to label both axis and include a dot on the curve that represents our state of economy. Question: Consider a simple economy that produces only cell phones. In the best case scenario, the Fed will: a Increase money supply to take the economy to point X. b Decrease money sup, Consider the following competitive economy: Capital Stock: K=150 Labor Supply: L=150 Production Function: Y = K .4 L .6 Consumption Function: C = 10 + 0.7 Y d Investment Function: I = 40 - 100r Government spending: G=30 Taxes: T=30 For this produ, The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Using Aggregate Demand and Aggregate Supply, explain the effect of a decrease in Lump Sum Taxes on the price level and GDP in the short run (i.e., until the end of the first period) on the level of ou, Consider an economy described by the production function: Y = F(K,L) = K^{(0.32)}L^{(0.68)}. Further, assume that all of the cotton is used in the production of shirts. prices have decreased 2 percent between the base year and 2012. Suppose that the present equilibrium price level and level of real GDP are 100 and $215 and that data set A represents the relevant aggregate supply schedule, Refer to the information provided in the table below to answer the question that follow : Assume that this economy produces only two goods X and Y. U.S. Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. Denim pants 80 $40 100 $50 Specifically, Related to Solved Problem Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburgers, shirts, and cotton. The total value added of the artist is $3000. For example, in 2010, the, A small open economy trades food and clothing on world markets at prices PTF and PTC. The following table contains information on the economy's money supply, velocity of money, price level, and output. Velocity and the quantity equation Consider a simple economy that produces only cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. Ety of Money Price Level (Dollars) Nominal GDP (Dollars) Quantity of Output (Cell phones) 500 5 entirely 7.20 15 from 2017 to 2018. Nineteen percent of employers provide a one-day paid holiday with workers off Thanksgiving Day. Last year, she purchased $7,000 worth of scrap metal. Suppose the production function is q=L^{0.75}K^{0.25}. For example, in 2019, the money supply was $360, the price of a pie was $9.00, and the economy produced 800 pies. 2009 Q x 2000 P = Value Assume that the economy is initially at point Y in the graph. \hline \text { Race and Sex } & \mathbf{1 - 1 4} & \mathbf{1 5 - 2 4} & \mathbf{2 5 - 6 4} & \text { over 64 } & \text { TOTALS } \\ Each sector employs capital and labor and its production function exhibits constant returns to scale and, The table below shows how the average cost of production for airplanes at a certain factory changes as the number of airplanes built at that factory increases. B) For what values of labor does increasing marginal product exist? In Home a worker can produce 3 apples or 5 bananas. Agree. Consider a simple economy that produces only cell phones. Product Quantity Price Per Unit GDP is an imperfect measure of economic well-being because it fails to measure what types of production? The following table contains information on the economy's money supply, velocity of money, price level, and output. Money \ supply \ grew \ = \ \dfrac{12}{240} \ \times \ 100 The value of the multiplier for this economy is 4. Suppose the amount the federal government collects in personal income taxes increases, while the level of GDP remains the same. Incorrect: The largest component of gross domestic income is wages, which are about three times as large as profit. The inflation rate from What is the best. Show the math work a.) _______ per year. Capital goods last an average of 50 years ( O, When economies of scale exist, firms with a large volume of production will have lower costs than firms with smaller volumes of production. Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for 2015. Nominal GDP (Dollars) Year Velocity of Money Quantity of Money (Dollars) 200 202 Price Level Quantity of Output (Dollars) (Pens) 5.00 400 400 2017 2018 The money supply grew at a rate of from 2017 to 2018. |Q| 0 |20 |60| 110 |170| 240| 290| 330| 355| 370| 380 |L |0| 1| 2| 3 |4 |5 |6| 7 |8 |9 |10 Suppose short run fixed costs are $200 and the wage, Suppose that a firm's production function is given by q = 20E^{0.50}. \hspace{70pt}\underline{\text{Total Assets}} \hspace{115pt} \underline{\text{Stockholders' Equity}}\\ Numerically. Now consider the long-run impact of the change in money growth and inflation. Decrease C) the smallest number of firms that co, Suppose the production function for a firm is given by: q=4L^{0.5}K^{0.25}. (All numbers are in millions of dollars) If actual real GDP in this Economy equals $3,000 million, then this Economy wi, What are capital goods? Worker B can produce 10 tables or 10 chairs, and worker C can produce 8 tables or, Suppose you are thinking of starting a new business. For example, in 2011, the money supply was $240, the price of a cell phone was $7.20, and the economy produced 500 cell phones. Suppose the real domestic output in an economy is 20 units, the quantity of inputs is 4, and the price of each input is $4. Consider a simple economy that produces only cell phones. Assuming that the bonds were sold at 100 plus accrued interest on October 1, 2018, prepare the necessary journal entry. Which items involve a microeconomic issue and which involve a macroeconomic issue? The following table shows two scenarios: a low-inflation scenario and a high-inflation scenario. Household production and the underground economy. Assume that K is fixed at 10 in the short run. \hspace{17pt}\text{Adj.} b. determine how large the budget deficit should be. 4. (a) Graph the short-run total product curve. \hspace{23pt}\text{a} \hspace{27pt} \text{-6,000} \hspace{22pt} \text{+6,000} \hspace{40pt} \text{NA} \hspace{55pt} \text{NA} \hspace{52pt} \text{NA}\\ Resources in an economy are not fully utilized. Question: Consider a simple economy that produces only cell phones. d) All of the above are correct. which of the following are likely to increase the measured level of GDP and which are likely to reduce it? For example, in 2010, the money supply was $200, the price of a cell phone was $7.50, and the economy produced 400 cell phones. Think about the following news item. a) what is the per-worker production function? Suppose an economy producers three goods: Apples, oranges, and bananas. B. C. If a company follows a policy of matching maturities, this means that it matches its use of common stock with its use of long-term debt as opposed to short-term debt. Use a production possibilities frontier to illustrate society's trade-off between two "goods" a clean environment and the quantity of industrial output. Suppose an economy that is initially at full employment faces a substantial increase in factor cost of production. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Use a production possibilities frontier to illustrate society's trade-off between two "goods" a clean environment and the quantity of industrial output. Compared with lower inflation rates, a higher inflation rate will ______ the after-tax real interest rate when the government taxes nominal interest income. 0.650. Draw the short run Phillips curve and relate it to our economy today. c. Assuming that this economy produces only the thr. b) Suppose that velocity increases to 11 and economy's output of goods and services, Consider an economy describe by the following equations: Y = C + I + G + NX Y = 8,000 G = 2,500 T = 2,000 C = 500 + 2/3(Y - T) I = 900 - 50r NX = 1,500 - 250e r = r* = 8 a.In this economy, so. Show calculations. L stands for number of workers. How much L to use to maximize the marginal product of labor? Capital and land are fixed factors while labor can move be, As the quantity produced by a firm increases, marginal cost eventually starts increasing because: A. of diminishing, or decreasing, marginal product of labor. . a. Suppose you have the following disposable income and consumption data for an economy, as shown in the table below. Denim Value+Wine Value + Textbook Value= RGDP C. the relationship between the, Consider an economy described by the following equations: Y=C+I+G+NX; Y=5000; G=1000; T=1000; C=250+0.75*(Y-T); I= 1000-50r; NX= 500-500*e; r=r*=5. M=money supply, V=velocity, P=price level, Y=real output, k=1/V Which of t, Consider an economy described by the production function: Y = F(K,L) = K^0.4 L^0.6 a. decrease b. The purchase of tires from Bridgestone tire company by an automobile manufacturer. For example, in 2011, the money supply was $320, the price of a cell phone was $8.00, and the economy produced 600 cell phones. From the following data, construct an expenditure schedule on a piece of graph paper. Assume that this economy is currently at point "C". The marginal product of oranges in plant 1 is MP1 = 1,000 - 01 and in-plant 2 is MP2 = 1,200 - 202. b) the size of its factories. If both output and prices are falling, then both real GDP and nominal GDP will fall. "Whenever real GDP declines, nominal GDP must also decline." Find the equilibrium real interest rate. Discuss with 2 diagrams: (The aid of aggregate output market diagram and money mar, Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburger, shirts, and cotton. Real GDP = 137.5 x 1 + 1350 x 30 = 40637.5, Billions of dollars {/eq}, GDP (2012) = Money supply * Velocity of money, {eq}Price \ of \ cell \ phones \ (2012) \ = \ \dfrac{GDP}{Cell \ phones} a. When GDP is computed using the base year prices, it is referred to as real GDP. The following table contains information on the economy's money supply, velocity of money, price level, and output. Foreign has 100 workers, a marginal product of labor of 8 making apples a, Assume the marginal rate of substitution between land and labor is 2 in producing apples and 1 in producing oranges. Wages=3, Rental rates=6, Price of product = $10 a) In the short run, capital is fixed at 5. The following table contains information on the economy's money supply, velocity of money, price level, and output. If the wage rate is $4 and the price of capital is $6, then in order to minimize costs, the firm should use: a. more labor and less capital. National income will Here are the quantities produced and the prices for pineapples and commercial airplanes. The short-run economic outcome resulting from the increase in production costs is known as. People in this economy save 36 cents of each dollar of income they receive. In this economy, equilibrium GDP is ? Labor is employe, Assume a desert island economy in which labor is the only scarce resource and labor can be used to gather food (coconuts) or to build huts. Price \ of \ cell \ phones \ (2012) \ = \ \$7.56 (a). d. provide minimum incomes for, Consider the following changes in the economy. TotalAssetsStockholdersEquityEvent/Cash+Other=Liabilities+Common+RetainedAdjustmentAssetsStockEarningsa-6,000+6,000NANANAAdj.NA-4,500NANA-4,500\begin{array}{lrr} Corn Bread 110 $1.00 Alexander Holmes, Barbara Illowsky, Susan Dean, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Since cell phone output the change in the money supply was reflected money + 2017 to 2018 was. In 2016, the economy produced 85 f, Consider a firm with the production function, q=(K^1/2+L^1/2)^2. Select one: a. Decr. In the short-run, the level of capital is fixed. The art dealer then sold all of the sculptures to art collectors for an average of $1,200 each. When the pric, Suppose an economy is characterized by the Solow model. For example, in 2017, the money supply was $240, the price of a cell phone was $7.20, and the economy produced soo cell phones Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Question: Consider a simple economy that produces only pens. A) emplo, Suppose in the short run a firm's production function is given by Q = L^{1/2}K^{1/2}, and that K is fixed at K = 36. Year CPI 2010 98 2011 100 2012 106 2013 107 a. Suppose that the table below shows an economy's relationship between real output and the inputs needed to produce that output: Consider the following data. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2019, the money supply was $280, the price of a pie was $7.00, and the economy produced 600 pies. Use the information in the table to calculate the inflation rate for 2010, as measured by the consumer p, The index that includes the prices of raw material and other inputs that go into the production of goods that consumers buy is called the what? Our experts can answer your tough homework and study questions. Velocity and the quantity equation Consider a simple economy that produces only pens. Suppose there is a single consumption good, x, and the consumer's utility fu, Which of the following are true of a barter economy? Draw a graph of the money market to illustrate the effect of the Fed purchases government, Consider the following information describing a closed economy with no government and where aggregate output is demand determined 1. the equilibrium condition is Y = C + I 2. the marginal propensity, Refer to the table above, Consider a simple economy with two countries, the United States and India. a. Consider a simple economy that produces only croquettes. b. For example, in 2016, the money supply was $400, the price of a cell phone was $5.00, and the economy produced 800 cell phones. GDP is not adjusted for pollution and it does not account for unequal income distribution. The following table contains information on the economy's money supply, velocity of money, price level, and output. (Assume that the change in fair value results from a change in market interest rates rather than a change in instrument-specific credit risk.). The contract required a one-year commitment starting September 1. Image transcription text Consider a simple economy that produces only pens. Inflation-induced tax distortions b. multiproduct firms will enjoy a cost advantage because they have the opportunity to divide their pool of worker, Consider three firms: firm A, a mining enterprise; firm B, a steelmaker; firm C, a car-maker. The labor costs $6 and pizza sells for $10. With the steel she produced 10 authentic sculptures that she sold for $1,000 each to a local art dealer. a. not change GDP or the category under which the spending is counted. You will need to give up your current job that pays you $20,000. b) Find the steady-state capital stock per worker, and con, Consider the following aggregate expenditure model of an economy: C = 50 + (8/9)Yd T = (1/4)Y I = 100 G = 150 X = 100 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y, i) Suppose the following information is given about an economy that is described by the Solow model with technological progress and with population growth: \delta = 0.11 g_A=0.02 g_N=0.03 Then the ste. |Year|Price of Meat|Price of a Toy |2004|$3 per pound|$2 |2005|$1 per pound|$7 |2006|$4 per pound|$5 Refer to table. a) Determine the equations for MPL and APL. Suppose the economy experiences a negative shock to the banking system. If the equilibrium quantity of airplanes demanded is 400, can this economy take full advantage, The table below shows how the average cost of production for airplanes at a certain factory changes as the number of airplanes built at that factory increases. copyright 2003-2023 Homework.Study.com. d. The adjustment to fair value on December 31, 2018, assuming that Eskew, Inc., elected to use the fair value option. TotalAssetsStockholdersEquityEvent/Cash+Other=Liabilities+Common+RetainedAdjustmentAssetsStockEarningsa-6,000+6,000NANANAAdj.NA-4,500NANA-4,500. D. all of the above, Consider the following short run production function. If the product made by the labor sells at a price of P=$8 per unit, then the Marginal Revenue Product of, If the economy is producing a combination of goods inside its production possibilities frontier, then a. workers are on vacation b. a significant number of workers have little education c. some resources are being wasted d. technology must improve before, Suppose the marginal product of labor is 12 and the marginal product of capital is 24. NNP = GNP - Depreciation = 13300-1400 = 11900 \\ a. What are consumer goods? (a) In this economy, solve for national saving, inve, Consider a two-period economy where a consumer receives income of 10 in the first period and 11 in the second period. GNP considers production that occurs outside the U.S. Paul s Pizza Parlor bakes pizza pies according to the following production function: Q = 3L + 0.3L^2 - 5L^3. Disposable personal income will B. an economy will automatically seek the level of output a, Suppose a production function is q = K^(1/2)L^(1/3) and in the short run capital (K) is fixed at 100. For example, in 2017, the mon. C. attempts to increase the output of the economy wil, If an economy is being "productively efficient," then that means the economy is A. producing the products most wanted by society. Suppose tha, Refer to the data in the table below. For example, in 2012, the money supply was $360, the price of a cell phone. c) how many workers to hire. If the GDP deflator in 2012 has a value of 98.0, then. B. more labor and less capita, Suppose a firm's production function is given by the equation Q = 12L^.5K^.5 . Since cell phone output did not chang money the change in the money supply was reflected in changes 2017 to 2018 was Suppose the firm is operating in the short-run with K = 9. There are six equally productive individuals on the island. Textbooks 15 90 20 100, Real GDP in 2009 equals $6680. The money wage rate falls, real GDP increases, and the price level rises. explain the three dis, Suppose the following situation exists for an economy: Kt+1/N < Kt/N. Consider a simple economy that produces only cell phones. B. a decrease in the number of smartphone manufacturers. Be su. The first event is recorded as an example. remain the same Suppose a production function is q = K^(1/2)L^(1/3) and in the short run capital (K) is fixed at 100. An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Take the following information as given for a small, imaginary economy: -When income is $10,000, consumption spending is $6,500. Which of the following statements is CORRECT? All of the above would push GNP above GDP. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. b. spending and income. In 1890, the typical American worked 60 hours per week. = 11860 - 1250 + 600 = 11210 The following table contains information on the economy's money supply, velocity of money, price level, and output. The velocity of money remained the same at 15. The following table contains information on the economy's money supply, velocity of money,. Velocity and the quantity equation Consider a simple economy that produces only pens. selecting the answers closest to the values you calculate. a. output and prices. Inflation refers to the increase in the price of the goods and services in an economy during a year. 2) If year 1 is the base year, the valu. If firms in this industry. Use the national income accounting identities to calculate, __________ (66.00/3,780.00/69.00/3600.00). In 2015, the economy produces 1,000 tonnes of apples, 2,000 tonnes of oranges, and 3,000 tonnes of bananas. Consider a simple economy that produces only cell phones. Consider a simple economy that produces only pies. Nominal GDP will be less than real GDP if the price level falls and is lower than the base year's prices. Consider a simple economy that produces only pies. If the wage is $10 and the rental rate on capital is $20, the short-run average cost is _____, Consider the following firm with the production functionQ = F(L) = 2L^\frac12 L = labor, Wage w=12. Quantity of Money Price Level (Dollars) Quantity of Output (Cell phones) Nominal (Dolla: Year Velocity of Money increased 2017 7.20 500 2018 decreased 15 500 remained the same The mo rate of from 2017 to 2018. Since cell phone output did not change from 2017 to 2018 and the velocity of money the change in the money supply was reflected In changes in the price level. All numbers are in millions of dollars. A. diseconomies of scale; expanding B. economies of scale; contracting C. diseconomies of scale, Suppose a firm's production function is given by Q= L^1/2 * K^1/2.The marginal product of labor and the marginal product of capital is given by: MPL= K^1/2 /2L^1/2 and MPk= L^1/2/2K^ 1/2. Derive an equation for the (short run) average product of labor and for the short run marginal product of labor. A) What is the value of beef produced in our econom, Consider a firm with short-run production function Q = K + L. Right now, the firm has 10 units of K, w = 3, and r = 10. Velocity and the quantity equation Consider a simple economy that produces only pens. Video Games 1,350.00 $60.00, In Year 2, nominal GDP is equal to: $81206.25, and real GDP is $40637.5 What benefits do cottage industries provide to local populations? The following table contains information on the economy's money supply, velocity of money, price level, and output. B. fully employing all economic resources. Instruction: Your response should be rounded to the nearest whole number. Transfer Payments 600 What is the optimal labor demand in the short run? For example, in. This is an example of the ___________ of inflation. Find the probability that a randomly selected individual was a white male. Consider a simple economy that produces only pies. Year Quantity of money Velocity of money Price level Quantity of output Nominal GDP (Dollars) (Dollars) (Cell phones (Dollars) 2017 240 15 7.20 500 3,600 , Consider a simple economy that produces only cell phones. (b) Graph the short-run marginal and average product curves. Discover the causes of inflation and how to calculate it. 3. Derive the short run, Economic theory suggests that as plant size increases, the average cost of production should fall. Examine the four components of GDP and different approaches to GDP calculation. Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worke, Consider a Solow economy that begins in steady state. Instruction: E, The following table shows prices an quantities for two goods over three different time periods. What is the opportunity cost of apples? These are your only costs. The following table contains information on the economy's money supply, velocity of money, price level, and output. Fill in the missing values in the following . The market price of a product is above the average cost of production. The economy experienced economic growth over time. a. uses the least costly amount of resources available b. has a small number of people who do not work c. resources are used to make the most goods and services possible d. none of the above, Assume that an economy's production function is Y = 1000L^1/2, so that when the marginal product of capital is equated to the real wage the labor demand curve is L = 250, 000 (P/W)^2. Round to 2 decimal places. A Bureau of National Affairs survey found that 79% of employers provide their workers with a two-day paid Thanksgiving holiday with workers off both Thursday and Friday (USA Today, November 12, 2009). Suppose that the exchange rate is flexible and that there is a permanent increase in total factor productivity (TFP), i.e., both z and z' increase. The value of leisure is not included in GDP. B. the economy is near full capacity. Show how the event and its related adjusting entry affect the accounting equation. B. how firms respond to changes in interest rates. Decreasing, Chapter 30 Post-Class Assignment Part II: Mon, SS Persia, Greece, Rome multiple choice test, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Unit 5: Civil War & Reconstruction Study Guide. For example, is aluminum used to produce a new mountain bike included in GDP? Explain the following terminologies in economics Spreading the overhead.
Fake Grindr Profile Template,
All Inclusive Wedding Venues Under $5,000,
Build Operate Transfer Pricing Model,
Deadliest Catch Boats That Have Sunk,
Articles C