10. In the equation Y=C+I+G+ NX, a. Y represents the economy's total expenditure. b. C represents household expenditures on services and durable goods. c. all of the variables are always positive numbers. d. All of the above are correct.
Q: With the aid of label diagrams explain the law of diminishing marginal returns
A: The law of diminishing marginal returns states that as the variable input is increased, the…
Q: A bicycle plant must produce 2000 bicycles per month to meet demand. The set-up costs for each…
A: Demand of bicycles per month: D = 2000 Set up cost for each production run: CS = $1160 Holding…
Q: Assuming the expectations theory is the correct theory of the term structure, calculate the interest…
A: Expectation theory, also known as expected utility theory or subjective expected utility theory, is…
Q: Refer to the graphs. Suppose that instead of a tariff, Home applies an import quota limiting the…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1. Personal Disposable Income is 1,000 crore c sumption expenditure is 750 crore, find
A: Consumption Expenditure is generally known to be as the spending basically by households on…
Q: Comment on another student's post by suggesting a demand or supply shifter different from the one(s)…
A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…
Q: Games with an Uncertain Final Period Suppose two duopolists repeatedly play the pricing game in…
A: A game that is played for a finite number of rounds or duration and involves several players is…
Q: 34. Imagine that an economy is operating at its full capacity, but still, its government incurring a…
A: Budget Deficit is said to occur when the Government expenditure is more than the Government revenue.…
Q: Application 1.7, In fall 2006, Pace University in New York raised its annual tuition from $24.750 to…
A: The tuition fee in 2005 was $24,750. Tuition fee in 2006 raises to $29500 Enrollment in 2005 was…
Q: For international trade, discuss your America’s absolute advantage, comparative advantage, and…
A: International trade (IT) refers to the exchange of goods, commodities, and services between nations.…
Q: To increase revenue, the provincial government of Saskatchewan has decided to open up millions of…
A: In economics, the concepts of demand and supply are fundamental in understanding how markets…
Q: Macronia's GDP is S The income-based estimate of Macronia's GDP is $ billion. The value of the…
A: GDP represents the overall worth of goods and services that are produced inside the nation. It…
Q: A master student interested in pursuing a PhD is deciding between two courses: advanced game theory…
A: When one of the parties in an economic transaction possesses greater details or information than the…
Q: he economic institution that transforms factors of production into consumer goods is: a. a firm.…
A: Production factors are those inputs that are required to manufacture or produce final products and…
Q: a How is the Phillips curve related to aggregate supply? b. What are the differences between…
A: The total amount of goods and services that all producers in an economy are willing and able to…
Q: If you invest $4,000 at 3% interest compounded monthly, how long will it take you to reach $5,000 ?
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: When the price of a muffin rises to $1.50 and the price of coffee falls to $1.75 a cup, Jim able to…
A: The total income available for expenditure on muffins and coffee is :- 10 muffins at $1 20 cups of…
Q: Consider Hotelling's model (a street of length one, consumers uniformly distributed along the…
A: The model developed by Hotelling emphasises the fact that deciding when to extract from a finite…
Q: The following diagram shows the market demand for titanium. Use the orange points (square symbol) to…
A: Under perfect competition a firm always produce at the point where P = MC and marginal cost (MC) is…
Q: Complete the following table by indicating whether an event will cause a movement along the demand…
A: Event Movement Along Shift Decrease in the income of consumers - YES Increase in the price…
Q: Complete the following table showing which curve shifts, which way it shifts, and the impact on the…
A: AD- Aggregate demand represents the total demand for goods and services within an economy at a given…
Q: conomics what are planned economy systems and how are they different?
A: It refers to a way or method by which an individual or the society Organize and manages it resources…
Q: If Firm 1 chooses to release the console in October with probability of 0.692 or December with a…
A: In game theory, a game tree is a graphical representation that depicts the sequential…
Q: 27 ces The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a…
A: A perfectly competitive firm produces it's output where the price is equal to marginal cost (MC).…
Q: ces $35 $30 $25 $20 $15 $10 $5 0 D 6 12 18 24 30 36 42 48 54 60 Quantity O Instructions: Enter your…
A: Deadweight loss is the decrease in total surplus resulting when efficient quantity is not produced.
Q: Draw a graph showing a firm in a perfectly competitive market that is making a profit, including the…
A: Perfectly competitive market refers to a market scenario in which there are many sellers and buyers.…
Q: If utility is given by U(x, y) = x2 + y2 and px = 2, py = 3, I = 50, this person will choose: a.…
A: The above utility function behaves similar to perfect substitute. Although the marginal utility is…
Q: 1. Suppose that we are interested in measuring the relationship between hourly wage and output…
A: Given The given regression equation: log(hrwaget)=β0+β1logoutphrt+ut .... (1) Here β0 =…
Q: Which of the following is correct? a. Less than 5 percent of world output is sold in a country…
A: This statement is not accurate. International trade plays a significant role in the global economy,…
Q: Problem: A diagnostics laboratory is considering one of the following microscopes with digital…
A: We have to calculate:\ present worth IRR for all option and check which option is recommonded.
Q: 3.3 Explain and show graphically how an increase in household saving affects the equilibrium…
A: The market for loanable funds represents the interaction between borrowers and lenders in the…
Q: true or false and give a brief explanation on why its correct or wrong. a) To correct for…
A: The estimation of the coefficients in linear regression equations that explain the connection…
Q: Given: interest rates are 8% in the U.S. and 5% in the U.K. The spot exchange rate for British…
A: To effectively borrow $1,000,000 for one year without using the U.S. money market, you can create a…
Q: As a response to the recent hike in inflation, the Bank of England has increased the repo…
A: Political considerations such as parliamentary cycles, opinions among the public, and special…
Q: The following data is available for three different alternatives. Assume an interest rate of 2% per…
A: Present worth, also known as present value or discounted value, is a fundamental concept in…
Q: Critically discuss why oil price shocks in the US may have had different effectsin the 1970s versus…
A: In this discussion, we will critically examine why oil price shocks in the United States had…
Q: Read each article linked below and summarize the implications of the events being discussed using…
A: Above article discusses about the changes in preferences over small and huge cars over time .
Q: 1. In the specific factors model, what is the shape of a country's production possibility frontier…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: The following graph shows the market for wheat in the European Union (EU). The world price of wheat…
A: Supply refers to the quantity of a good or service that producers are willing and able to sell at a…
Q: Suppose the market demand for organic grass-fed beef is given by Q=100-2P and the supply is given by…
A: Note: “Since you have posted a question with multiple sub-parts, we will provide the solution only…
Q: PRICE Point D Point E Suppose the economy is self-regulating and is at point A when it experiences a…
A: Keynesian principles have had an important influence in terms of policies. The historical importance…
Q: A poor family chooses between hours of child care per day, Q, and all other goods per day. At the…
A: A lump sum subsidy refers to a form of government support provided to businesses or individuals in a…
Q: (a) Derive the equilibrium in this economy without an intermediary bank. How much would people…
A: Solving all parts (a), (b), (c) and (d) stepwise below.
Q: Suppose the owners of the bank contribute an additional $200 from their own funds and use it to buy…
A: When the owners of the bank contribute an additional $200 from their own funds and use it to buy…
Q: Suppose that an economy consists of only two individuals. Trevor has $1150 available to spend on…
A: The continuous movement of money and goods between households and businesses within an economy is…
Q: 4. Boxowitz, Inc., a computer firm, markets two kinds of calculators that compete with one another.…
A: Total revenue means the overall income generated by a firm from the sale of its goods or services.…
Q: Consider table 3.1. What is the dollar amount of average variable cost per unit at the production…
A: The expenses incurred by an individual or firm in the process of producing a good or providing a…
Q: A small heat pump now costs $2,800 to purchase and install. It has a projected useful life of 12…
A: Given,
Q: . The Durbin-Watson (DW) test is applied to the following regression, Y = a + B₁X₁ + B₂X₂ + B3X3 + ε…
A: The DW test is used to detect the autocorrelation in the error term of model. The autocorrelation…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- In a simple economy, calculate gross domestic product using the following figures. (Not all variables need to be used, an extra variable may be given.)a. Calculate by spending approach.b. Calculate with income approach. Consumption 9500 Investment 3000 Wear 1750Profits 2400Exports 850Payments to employees 11500Government purchases 3200 Direct Taxes 1200Savings 1600 Imports 900Which of the following is NOT accounted in the expenditure approach? a. Food b. Furniture c. Used cars d. Education1. What relationship does the income expenditure model represent? Why is it used?
- 3. Categories of expenditures Darnell and Eleanor Cohen live in Conshohocken, PA. Their son, Jacques, owns his own plumbing business. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Darnell buys a sweater made in Guatemala. Darnell's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. Eleanor gets a new video camera made in the United States. The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway 23, which feeds into the center of Conshohocken. Jacques buys a new set of tools to use in his plumbing business. с □ I □ G □ X □ M □ □10 In the expenditure approach, the total expenditures of the following entities are calculated, except a. Gross taxable incomes b. Gross private domestic investment c. Government expenditures d. Net ExportsThe table below gives some of the items in the U.S. National Income and ProductAccounts in 1995.ItemAmount(trillions ofdollars)Consumption expenditure 4.97Investment 1.14Government expenditures 1.37Net exports 0.08Wages 4.20Interest, rent, and profit 1.68Depreciation 0.89a) Use the expenditure approach to calculate U.S. GDP in 1995.b) Use the income approach to calculate U.S. net domestic product at factor cost in
- 3. Categories of expenditures Dmitri and Frances Doherty live in Conshohocken, PA. Their son, Jake, owns his own plumbing business. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (1), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Dmitri's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway: 23, which feeds into the center of Conshohocken, Frances gets a new video camera made in the United States. Dmitri buys a sweater made in Guatemala. Jake buys a new set of tools to use in his plumbing business. с 00 I O O G O X 0 M O O 0 000 00 000 000Question 1Explain the expenditure measure of GDP. What is the underlying assumption of this measure? Provide one example where the underlying assumption is violated. Explain the income measure of GDP. What is the underlying assumption of this measure? Provide one example where the underlying assumption is violated. Explain why we need to compute nominal GDP, real GDP, and per capita GDP.3. Categories of expenditures Shen and Valerie Ferrari live in Swarthmore, PA. Valerie's father, Antonio, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Shen's employer upgrades all of its computer systems using U.S.-made parts. Valerie gets a new video camera made in the United States. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. Valerie's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Shen buys a bottle of Italian wine. OOOoo 0 I 00000 G 00 000 X 00000 M OC 0 0 0 0
- Give typing answer with explanation and conclusion what is the US GDP for the first quarter and second quarter of 2021? What is the personal consumption expenditures for the first quarter and second quarter of 2021?72. Which of the following expenditures would increase the consumption component of GDP? A. You buy a new house. B. You buy a pizza. C. You buy 1,000 shares of stock. D. You buy a used book about finance4. A(n) shows the relationship between national income (GDP) and total spending a) balance sheet b) expenditure schedule c) consumption curve d) demand schedule