Assume that an economy has 1,000 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will be
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Assume that an economy has 1,000 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will be
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- John owns a small farm in central lowa. John has been using the same resources to grow the same amount and quality of potatoes each year on the farm for 25 years. Is John helping to drive growth in real GDP? Because John is not adding additional value each year by doing something better than he did the year before, he is contributing to GDP; but he is not driving growth in real GDP. John is using land as a factor of production and making something with it; thus, he is driving growth in real GDP. John is adding value by growing potatoes, so each year he contributes to driving growth in real GDP. Because John is not adding additional value each year by doing something better than he did the year before, he both not contributing to GDP nor driving growth in real GDP.Suppose that Indonesia's national production function is Y = K 05L 05, where K is the amount of land and Lis the amount of labor. The economy starts when the amount of land owned is 100 units and the number of workers is 100 units. Calculate the following indicators. a. How much output is produced? b. What are the labor wages and land rent? c. What is the share of the output received by labor? d. If a natural disaster occurs that causes the population to be reduced by half, what is the new level of national output? e. What are the new rates of labor wages and land rent? f. What share of output does the labor receive now?This year, if two million new babies were born in the U.S. and if two million more immigrants came to the U.S., then the Annual Real GDP Per Capita will go down if we assume no change in the real GDP figure between this year and last year.
- Suppose an economy consists of only three goods, as shown in this Table: What is real GDP in 2020 and 2021? How much (in percentage terms) did real GDP change between 2020 and 2021?One way to measure a country’s economy is per capita gross domestic product, or per capita GDP. This is the value of all the products and services produced in a country over the course of a year divided by its population. If the United States had a per capita GDP of $60,700 and the population was about 322 million, which of the following is a reasonable estimate for the GDP of the United States? i. $20 billion ii. $1.2 trillion iii. $30 trillion iv. $20 trillion v. $30 billionHow Real GDP is measured? Explain Real GDP of the United States at present time.
- The country described in the table below produces and consumes only three goods: T- shirts, shampoo, and bread. Assuming that 2018 is the base year, by what percentage did real GDP grow between 2018 and 2019? (If your answer is 23.23%, please write 23.23) T-shirts Shampoo Bread 2018 Quantity Unit 10 units 20 bottles 30 kilograms Typed nuleric answer will be automatically saved. Price Quantity 40 10 9 2019 Unit 20 units 10 bottles 25 kilograms Price 45 18 20 CWhat is GDP? What is real GDP ? What is per capita GDP ? Why is our GDP shrinking in the ongoing Corona Virus Crisis? What is a clear indication that the GDP will be decreasing?Part of a bridge built by the government of Ritzland collapsed in the same year it was constructed. If the total cost of building the bridge was $4 million, and then it costs $3 million to repair it, which of the following will happen in this scenario, everything else remaining unchanged? Ritzland's GDP will decrease by $4 million. Ritzland's GDP will increase by $3 million. Ritzland's GDP will increase by $7 million. Ritzland's GDP will increase by $1 million
- Please label which part of the question (a, b, c, or d) that you are answering. A small economy produces only two goods: bananas and computers. The prices and quantities of these goods for the years 2018, 2019 and 2020 are given below. Show all working where possible and express answers to 2 decimal points. Year Price of Bananas Quantity of Bananas (kgs) Price of Quantity of (per kg) Computers Computers 2018 $4.10 947 $331.00 55 2019 $ 4.20 970 $335.00 57 2020 $ 4.30 990 $340.00 60A country has just one resource - labor - that it can use to produce two goods, books and clothing. At first the country has 10 million workers, and each worker can produce either 2 books or 5 units of clothing per day. Suppose the country wants to produce 8 million books. Suppose the price of a book is $10, and the price of a unit of clothing is $20. Using this information and your answer from the last question, calculate the country's GDP (measured in dollars per day). Enter your answer as a number in the space below. (For example, if your answer is $3.75 million, enter it as 3750000 in the space below.)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, 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 the T-shirt to a wholesaler for $5, who sell it to Nordstrom for $10, which finally sells it to you for $17. Calculate the income earned for each firm involved in the production of T-shirts. Then, calculate the total income contribution from T-shirt production to GDP.