ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Considering the strengths and weaknesses of GDP as a measure of a nations "well-being," how do you think we should change the way we measure GDP, if we want it to be a better measure of our "well-being?" In other words, nations around the world use GDP as a measure of how well they are doing, and they use changes in GDP as a way to gauge if they are doing better or worse than they were the last time they measured GDP. What specific changes do you think a nation should adopt so that GDP is a better measure of how well-off that nation is? It is not sufficient to write about the problems with the the way GDP is measured; provide your ideas on how - considering those problems - we can make GDP a better measure of how well-off we are. Keep in mind if something is to be included in the GDP, it must be able to be put in monetary units (US dollars, in the case of the US). So if you suggest something should be included, you need to explain how it would be measured (or estimated) in…arrow_forwardAlthough GDP is a reasonably good measure of a nation's economic well-being, it does not necessarily include all factors that contribute to it. Which of the following factors are not accounted for in calculations of the GDP of Canada? Check all that apply. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government The parts of a car manufactured in Canada that are produced in the United States The variety of goods available to consumers The loss of enjoyment people suffer when scenic land is converted to commercial use Federal government paycheques to soldiersarrow_forwardThe table below lists GDP and GDP growth rates for the countries of Cortania, Microtania, and Boxtown. Fill in the final column, which asks for the GDP in each country 13 years later. Country GDP in $ billions GDP annual growth rate (%) Cortania Microtania Boxtown 10600.00 44000.00 48100.00 3 2 4.5 Glarrow_forward
- Suppose that the GDP of California increases by 8.0% each year. How long will it take for the GDP of California to double? Round your answer to one digit after the decimal. duration for California's GDP to double: Suppose that the GDP of Oregon today is exactly twice what it was 17 years ago. What was the average annual growth for Oregon over this time period? Round your answer to one digit after the decimal. average annual growth for Oregon: years % each yeararrow_forwardTo calculate GDP from the income side, one must add together wages, a) government income, interest, and profits. b) consumption and depreciation. c) interest, rent, depreciation, profits and indirect taxes net of subsidies. d) investment, rent, depreciation, profits and indirect taxes net of subsidies. e) net exports, depreciation, and profits.arrow_forwardOne way of measuring standard of living is by using real GDP per capita. a) Complete the table below by calculating Real GDP per capita for the 3 years (remember to show your work for at least one year): Years 1 2 3 Real GDP (in millions of dollars) $5,720 6,496 7,392 Population (in Real GDP per thousands) capita 220 224 231 b) By what percentage this country's RGDP per capita rose between year 1 and 3? Show your work!arrow_forward
- URGENTarrow_forwardThe US and Peru are the only countries in the world and they both produce cars and haircuts. The table below gives you the data on the quantity produced, the unit price of each item and the value of output for each sector. Cars Haircuts GDP The US (currency = US$) Quantity (units) 1000 2000 Price (USS) 100 5 Value of Output (USS) 100,000 10.000 Peru (currency = Sol) Quantity (units) 200 4000 What is the GDP of Peru in USS at the most likely market exchange rate? the GDP of Peru in US$ is: 240,000/2-US$120,000 the GDP of Peru in US$ is: 160,000/8=US$20,000 the GDP of Peru in US$ is: 160,000/2-US$80,000 the GDP of Peru in US$ is: 240,000/8-US$30,000 Price (soles) 800 20 Value of Output (soles) 160,000 80,000arrow_forward(i) Final goods that are produced but remain unsold in the current year should be excluded in the calculation of GDP for the current year. (ii) Under expenditure method, the value of apples used in the production of apple juice for retail purposes should not be added in the final production when measuring GDP. (iii) Ignoring transaction charges, a purchase of $50,000 worth of Singtel shares should be included in GDP measurement. Are these statements true or false?arrow_forward
- 63,080 47,090 United 44,940 States Germany 41,310 30,600 ueder 21,600 GDP per Capita (2018) (In U.S. dollars) ipnes Παναγ 11,124 10,230 امي الحمد المحمود حجم خون هم می می می می 9,460 9,180 aver d 7.480 China 2.020 360 Cuba India 800 790 Nigeria Halt Ethiopiaarrow_forwardIn 2018, the country of Questville had a GDP of $39000.00 and the country of Mistania had a GDP of $19500.00, which is half, or 50% of Questville's GDP. If Questville grows at the slow rate of 1% for 5 years while Mistania grows at the fast rate of 6% for 5 years, what will Mistania's GDP be as a percentage of Questville's GDP in 5 years from now? Include the % sign in your answer. Does this example illustrate the concept of convergence? OYes SONOarrow_forwardCountry A produces GDP according to the following equation: GDP = 5√K. The country has a savings rate of 27.6% and 8.8% of capital depreciates every year. What is this country's steady state amount of GDP? Round your final answer to two decimal places.arrow_forward
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