How does the value of production relate to expenditure and income? The value of production ____. A. Equals expenditure but is less than income. B. Equals expenditure and equals income. C. exceeds expenditure but equals income.

How does the value of production relate to expenditure and income? The value of production ____. A. Equals expenditure but is less than income. B. Equals expenditure and equals income. C. exceeds expenditure but equals income.

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

Related questions

Q: Which of the following external sources of increasing capital stock has maximum political…

A: The correct option for the 1st question should be foreign aid. This is because foreign aid refers to…

Q: People will consistently sit through terrible movies at the theater instead of leaving early. This…

A: Sunk cost is the cost which cannot be recovered as ticket cost of the movie in the case. Because if…

Q: In the Neoclassical firms maximize profits when a. marginal efficiency of capital = interest rate b.…

A: The price of a factor of production is often explained by the marginal productivity theory of…

Q: The amount of P50,000 was deposited in the bank earning an interest of 7.5% compounded…

A: Given the following information: Amount deposited = P50,000 Interest rate, r = 7.5% Semi-annually,r…

Q: (Q: 12-2508858) A single-price monopolist faces an inverse demand function of: P(Q,B) = 100-Q+B a…

A: P=100-Q+B0.5 Profit=Total Revenue- Total Cost TR=P*Q TR=(100-Q+B0.5)Q TR=100Q-Q2+B0.5Q TC= Total…

Q: Suppose balance of trade is $630 and imports of goods is $115 find the exact value of the exports of…

A: Balance of trade is gradually defined as the must value of the exports excluding the part of the…

Q: Consider the market for High-Definition television sets in an average town in America. a. Start in…

A: In a free market, the equilibrium is attained by the forces of the demand and supply curve. The…

Q: Consider about a market with two businesses. Iron is produced by Firm 1 utilizing both…

A: Goods Goods are those that fulfil human needs and offer usefulness, such as to a customer buying a…

Q: 2. Fifi purchased on monthly installment property worth P100,500. The interest rate is 12% nominal…

A: The term cash flow alludes to the net amount of endlessly cash equivalents being transferred all…

Q: Burger King has introduced new strategy by reducing the price of its Whopper by 75 percent if…

Q: Ice cream is made from fresh milk. A change occurs in the market for ice cream and the supply of ice…

A: The law of supply refers to the positive relationship between price and quantity supplied. as price…

Q: oligopoly

A: A market is defined as the total number of buyers and sellers in a certain area or region. The…

Q: Concerned about obesity, the city of Berkeley, California became the first in the US to pass a tax…

A: Given, Berkeley, California became the first city in the US to enact a levy on sugary drinks,…

Q: A situation where society is producing the best combination, and the maximum amount, of goods and…

A: Economics is the study of how the scarce resources of society are exploited. It is a social science…

Q: he quantity demanded x for a certain brand of MP3 players is 300 units when the unit price p is set…

A: The demand curve (DD) in economics is a graph that shows how many units of a product or service will…

Q: What is the new market equilibrium?

Q: 3. Determine the annual worth (AW) of a project, where it requires capital investment of BD 50,000,…

A: the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum Rate of…

Q: D3

A: We know that The labor market alludes to the supply of and demand for workers, in which workers give…

Q: Refer to Table 3-2. At a price of $750, the quantity of bicycles demanded per week will be A greater…

A: The demand curve for a product is downward sloping. A downward-sloping demand curve states the…

Q: If demand and supply change in the same direction, we _____ the direction of change of the…

A: When the demand and supply change in the same direction then,we can predict the direction of change…

Q: G9

A: Factors of production are the components used for the process of manufacturing the goods and…

Q: c) Explain the dynamics underlying the differential equation dP dt where c and are constants. What…

A: In the given equation dPdt=cP(1-λP)where c and λ are constants The dynamics underlying it are as…

Q: What is the equation for the student's budget constraint? In your equation, use Q1 as the variable…

A: The opportunity cost = What is sacrificed / What is gained

Q: When bakeries produce sliced bread, they also produce bread crumbs. Bakeries sell the sliced bread…

A: A shift in the supply curve and an adjustment to supply result from a change in the price of a…

Q: p. How would the immigration of 10 munchkins, i.e., 10 units of labor, affect the PPF equation? Show…

Q: 7. The Phillie Phanatic always eats his ballpark franks in a special way- I foot-long hot dog…

A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…

Q: #5

A: The difference between how much a person is willing to accept for a given quantity of a good and how…

Q: What is the market equilibrium? The equilibrium price of a loaf of bread is $ enter your…

A: Market Equilibrium occurs when the quantity demanded is equal to the quantity supplied. We can plot…

Q: Explain the Prisoner’s Dilemma. Give some examples.

A: In economics, game theory refers to the concept to analyze the behavior of an imperfectly…

Q: ark your answer

A: Marginal propensity to consume (MPC) measures the change in consumption due to change in disposable…

Q: nalyzes yzes the relationship bet viewing the store's data for the previous six months. The da e…

A: In statistics, in addition to the mode and median, the mean is one of the measures of central…

Q: 7. The Phillie Phanatic always eats his ballpark franks in a special way- I foot-long dog together 1…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first three sub part of the…

Q: 3)

A: According to the question The given matrix here indicates the cost expected from 4 alternatives…

Q: 7. What are the four factors of production? Thanks

A: Factors of production: - factors of production are the resources used to produce goods and services.…

Q: Companies building stagecoaches understood the marginal concept. After experimentation, it was…

A: In a production unit, some factors can be fixed and some others can be variable. This is a concept…

Q: 4. If the labor force is 500 and employment is 450, then unemployment rating a. 0 b. 100 c. 10 d. 90

A: When certain workers are unable to find employment in the economy despite actively hunting for it at…

Q: Assumptions for all the questions: Private consumption is a function of disposable income and…

A: Initially in economy , Y* < Y (Full employment ) Capital flow = 0 In Short run the effect of…

Q: You may need to use the appropriate appendix table or technology to answer this question. Consider…

A: Since you have posted multiple questions, as per the guidelines we can solve only one question per…

Q: M1

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: Review the neoclassical model's basic microeconomic presumptions regarding customer behavior.

A: Neoclassical model: This term refers to a model in which supply and demand is used to account for…

Q: In the context of a duopolistic market with firms competing a la Cournot, discuss the comparative…

A: Duopolistic market: A duopoly is a shape of an oligopoly, wherein the best organizations dominate…

Q: You explored changes in the prices of bottled water, Gatorade, and a gym membership. Which of these…

A: Substitute goods are those that can be used in place of one another, whereas complementary goods are…

Q: Imagine that Beth is the best florist in the world and the best pianist in the world. But can earn…

A: Absolute advantage is the capacity to produce an expanded number of goods and services at preferable…

Q: Fantaa is the only soft drinks manufacturer in Country V. Weekly, Fantaa is able to produce 6.34…

A: In the free market, the equilibrium price and quantity is determined by the forces of demand and…

Q: When timber mills process logs, they produce both beams and sawdust. In the market for timber beams,…

A: The concept of supply in economics is used to calculate the quantity of a good or service produced…

Q: You are quoted an interest rate of 6% on an investment of $1000. What is the value of your…

A: Here, it is given that an investment of $1,000 gives 6% annual interest rate that is compounded…

Q: What happens to the supply curve when the supply of bottled water changes? When the supply of…

A: A Supply curve measures the relationship between the price of the good and to quantity supplied of…

Q: a) A concerted reduction in the total production level in oil markets.

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: Calculate CPI and TCPI and comment on whether our cost management in the following project is…

A: The CPI is the ratio of the actual cost (AC) of carrying out the project activities to the earned…

Q: Brainstorm common items that you think consumers pay too much for or that you think are overpriced…

A: Given data Scarcity- When a commodity or service is scarce, there is a larger demand for it than…

Question

How does the value of production relate to expenditure and income? The value of production ____.

A. Equals expenditure but is less than income.

B. Equals expenditure and equals income.

C. exceeds expenditure but equals income.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is investment? A. Expenditure on goods produced but not consumed during the period under consideration B. Expenditure on goods produced and consumed during the period under consideration C. Expenditure on goods by the government. D. Expenditure on wages
4. A(n) shows the relationship between national income (GDP) and total spending a) balance sheet b) expenditure schedule c) consumption curve d) demand schedule
Which of the following is NOT accounted in the expenditure approach? a. Food b. Furniture c. Used cars d. Education
An economy’s gross domestic product isa. the excess of spending overincome.b. the excess of income overspending.c. total income and total spending.d. total income times total spending
1. Changes in real GDP reflect a. only changes in prices. b. only changes in the amounts being produced. c. both changes in prices and changes in the amounts being produced. d. neither changes in prices nor changes in the amounts being produced.
Assume the economy experiences an increase in non-market transactions and a decrease in market transactions. Which of the following is true? A. GDP will increase B. The productive activity has increased. C. GDP will decrease D. The market value of services will increase.
An automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor, $5,000 of capital and has a 20% sales markup to consumers. a. What is the total value of intermediate goods? b. What are the total payments to factors of production? c. What is the total value of sales? d. What is the value of GDP from the sale of this car?
GDP measures: the value of production total expenditures income of factors production all the above 2. GDP does NOT include: re-sale of houses durable consumption spending consumption spending for services payment of WVU faculty salaries 3. Suppose that Inventories fall by $2 billion, Consumption increases by $8 billion, Welfare Payments decline by $3 billion, Export increases by $2 billion and Import also increases by $2 billion. Ceteris paribus! By how much should measured-GDP change? $6 billion $8 billion $11 billion $9 billion
At the equilibrium level of income it must be true that total Select one: a. product equals total output. b.income equals total spending. cincome equals total saving. d. output equals total inventory.
a. Consider an economy which produces and sells, among a host of other things, 100 million T‑shirts a year. The average T‑shirt begins life when a farmer plants seeds she put away last year, waters them, and harvests the cotton, then sells the cotton to a mill for $0.75, which sells the fabric to a T‑shirt factory for $1.50, which sells its T‑shirts to a wholesaler for $5, who sells it to Nordstrom for $10, which finally sells it to you for $17. Determine the impact of T‑shirts on annual GDP by calculating the value added of the entire production process. b. Now, calculate the amount spent on T‑shirts in a year if 100 million T‑shirts are sold, each for $17. How does this compare to the amount calculated through the value‑added method?
a. either increase or decrease. b. increase. c. decrease. d. remain constant.
18. If consumers in the U.S. buy $3.5 billion of clothes made by businesses in Bangladesh, how is this accounted for in the expenditure categories? a. this is spending on a consumer good so GDP rises b. the clothes are imports so they reduce GDP c. the clothes are both consumer goods and imports so GDP doesn't change d. the GDP could rise or fall, it depends on whether the clothes were taxed