Joe has a full-time construction job and also does odd jobs for people on the weekends but does not report this income to the government. You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence. Does the payment to Joe count toward the value of gross domestic product (GDP)? O a) No, his is a nonmarket activity. O b) Yes, the fence increases the value of your house. Oc) Yes, all income earned counts in GDP. O d) No, this income is not reported to the government. O e) No, this is a leisure activity.

Joe has a full-time construction job and also does odd jobs for people on the weekends but does not report this income to the government. You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence. Does the payment to Joe count toward the value of gross domestic product (GDP)? O a) No, his is a nonmarket activity. O b) Yes, the fence increases the value of your house. Oc) Yes, all income earned counts in GDP. O d) No, this income is not reported to the government. O e) No, this is a leisure activity.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Similar questions

National Income 700 Personal income taxes 154 Other income not paid out 44 Corporate profits tax 50 Undistributed corporate profits 32 Government transfer payments 100 Refer to the table above to answer the following question. What is the value of personal income? O a. 654 O b. 590 O c. 690 O d. 674
Expenditure on consumption goods and services flows from through the markets. O A. households and governments to firms; goods O B. governments to households; goods O C. households and governments to firms, factor O D. households to firms; goods O E. firms to households, factor
86) An economy unit of agricutural output raquires 0.L'unit of ag ristural input and agriultural industy and a teatile industry. Each has 9n 0.1 unit of textiles inputs. Each unit of textiles output requires o.1 unit of agricul tural imput and 0:2 unlt of textiles input. a Write the technoligy matrix for this b) If surpluses of S units of agrlualhural products and15 units of texti le s ave desired, final the gois poluchion of each industry econdny. .
Suppose that in the year 2010, Celestial Electronics planned toproduce 950,000 units of its portable GPS devices. Of the950,000 it planned to produce, a total of 25,000 units wouldbe added to the inventory at its new plant in Florida. Alsoassume that these units have been selling at a price of $100each and that the price has been constant over time. Supposefurther that this year the firm built a new plant for $5 millionand acquired $2.5 million worth of equipment. It had noother investment projects, and to avoid complications,assume no depreciation.Now suppose that at the end of the year, Celestial had produced950,000 units but had only sold 900,000 units and that invento-ries now contained 50,000 units more than they had at thebeginning of the year. At $100 each, that means that the firmadded $5,000,000 in new inventory.a. How much did Celestial actually invest this year?b. How much did it plan to invest?c. Would Celestial produce more or fewer units next year? Why
Suppose you observe the following change in the production possibility frontier of the economy: Car Software You know that software is intensive in high-skilled workers, while cars are intensive in low-skilled workers. Which influx of immigrants is most likely to have caused such change? O Low skilled immigrants O 50-50 mix of high skilled immigrants and low skilled immigrants O High-skilled immigrants O Not enough information
When a firm produces and sells a refrigerator worth $1,000, its contribution to the gross domestic product (GDP) on the income side is measured by: O a. the price paid by the consumer. b. the investment made by the firm to manufacture the refrigerator. c. the cost of raw materials used by the firm to manufacture the refrigerator. d. the sum of the wages, interest, and rent paid by the firm's owners and the profit of the firm. e. the stock of inventories used by the firm to manufacture the refrigerator.
Table 6.7 $Billions 625 Compensation of employees Proprietors' income Corporate profit 70 50 Net interest 40 Rent al income 15 90 Deprecation Indirect taxes 35 Direct taxes 60 Subsidies 10 Payments of factor income to the rest of the world Receipts of factor income from the rest of the world 25 20 Refer to Table 6.7. The value for gross domestic product in billions of dollars is Select one: O a. 975. O b. 720. O c. 920. O d. 800. Any point out inside the Production Possibility Frontier (PPF) is inefficient and impossible. Select one: O True O False
Consider the following graph, which shows the relationship between an individual's income and the number of times he or she eats out each month. QUANTITY (Dinners out per month) 20 18 16 14 12 10 8 0 0 1 2 6 8 4 5 7 INCOME (Thousands of dollars per month) 3 O 9 10 0 Nick Hint: When answering the following, be sure to specify the appropriate units. The blue point already shown on the graph shows the data for Rosa. According to the graph, Rosa's income is , and she has
12 Investment Figure 14.4 383.Figure 14.4 shows three possible shifts in the production possibilities frontier of a country. Which allocation would be the most likely explanation for shift number 3? (A) R (B) W (C) x (D) Y (E) Shift number 3 is not possible. LHH actment Consumption
The GDP of the U.S. represents about O 25 O 35 O 45 O 55 % of the GDP of the world.
The gross domestic product (GDP) of the United States is defined as the market value of final goods and services produced within the United States all in a given period of time. 2. Activities included (and not included) in the calculation of GDP 2023 GDP Included Excluded Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2023. O O о о Scenario An accountant starts a client's 2023 tax return on April 14, 2024, finishing it just before midnight on April 15, 2024. Generic Motor Company, a U.S. automobile company, produces a pickup truck at a manufacturing facility in Lordstown on January 23, 2023. It sells the car at a dealership in San Francisco on February 14, 2023. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 11, 2023. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2023.…
Question 1 The Consumer Price Index (CPI) is designed to reflect O only prices faced by consumers in their purchases with discretionary income O only prices faced by consumers for essential goods and services O only prices faced by consumers for personal entertainment O all prices faced by consumers Question 2 The Personal Consumption Expenditures Price Index (PCEPI) is design to reflect Oonly prices faced by consumers in their purchases with discretionary income Oonly prices faced by consumers for essential goods and services Oonly prices faced by consumers for personal entertainment. all prices faced by consumers TI Att 9