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.

1. According to part A of Table 5-1, what education level loses most (i.e., has the greatest decrease in wage) from immigration to the United States? Does this result depend on keeping the rental on capital constant? Explain why or why not. 2. Suppose that computers use 2 units of capital for each worker, so that KC = 2 • LC, whereas shoes use 0.5 unit of capital for each worker, so that KS = 0.5 • LS. There are 100 workers and 100 units of capital in the economy. a. Solve for the amount of labor and capital used in each industry. Hint: The box diagram shown in Figure 5-7 means that the amount of labor and capital used in each industry must add up to the total for the economy, so that Use these two equations to solve for LC and LS, and then calculate the amount of capital used in each industry using KC = 2 • LC and KS = 0.5 • LS. b. Suppose that the number of workers increases to 125 due to immigration, keeping total capital fixed at 100. Again, solve…

Assume an economy with a coal producer, a steel producer, and some consumers. (There is no government.) In a given year, the coal producer produces 15 million tonnes of coal and sells it for $6 per tonne. The coal producer pays $70 million in wages to consumers. The steel producer uses 45 million tonnes of coal as an input into steel production, all purchased at $6 per tonne. Of this, 15 million tonnes of coal comes from the domestic coal producer, and 30 million tonnes is imported. The steel producer produces 20 million tonnes of steel and sells it for $35 per tonne. Domestic consumers buy 16 million tonnes of steel, and 4 million tonnes are exported. The steel producer pays consumers $40 million in wages. All profits made by domestic producers are distributed to domestic consumers. a. Determine GDP using (i) the product approach, (ii) the expenditure approach, and (iii) the income approach. (i) Using the product approach, the value added by the coal producer is $ million, the value…

At the beginning of the year, you have a saw worth $2,000 and a bunch of trees. says it will pay you $4,000 to not cut down your trees. Freaks4Environment Instead, you hire Lei to use your saw to cut down all of the trees. At the end of the year: you sell trees Lei cut down for $27,000; you pay Lei $15,000; and your saw is now worth $1,000. Based on this information, how much GDP has been created? Round to two decimal places. Do not enter the currency symbol, but enter the negative sign if appropriate. If your answer is -$1.125, enter -1.13. 27,000

Refer to the following table when answering the following questions. Table: U.S. 2015-2018 Domestic Income ($ billions) Compensation of employees, paid Wages and salaries Supplements to wages and salaries Business taxes Business subsidies Net operating surplus Private enterprises Surplus of government enterprises Show Transcribed Text Supplements to wages and salaries Business taxes Business subsidies 3 Net operating surplus Private enterprises Surplus of government enterprises Source: U.S. Bureau of Economic Analysis 2015 2018 O $13.850 O $9.704 O $31.518 O $18.480 9.264 9.704 7,487 7,866 1,777 1.838 1,210 1,238 57 4,489 4.575 4,509 4,593 -20 -19 1,777 1,838 1.210 1.238 57 57 4,489 4.575 4.509 4.593 Depreciation of fixed capital 2.745 2.831 57 -20 -19 From this data, total GDP in 2015 was about billion.

If a country's GDP is $200 million, and its total population is 10,000, but only 8,000 of these people work, the country's per capita income is: O a) $11,111. Ob) $20,000. O c) $25,000. d) $100,000.

The outer flow in the circular flow diagram is measured in O goods and services produced inputs (factors of production) O government revenues O money MacBook Air 吕口 F3 D00 F4 F5 F6 F7 F8 2$ & 4 7 8 Y 6