K The demand for investment point(s) possible OA. increases with technological improvements. OB. is not affected by immigration. OC. is not affected by investment tax credits. OD. is not affected by the economy's total income. OE. decreases when the demand for goods and services increases.

Q: What are the equilibrium effects of an increase in total factor productivity? (Select all that…

A: Total factor productivity refers to enhanced productivity that cannot be directly attributed to…

Q: A rightward shift of the investment demand curve would be caused by a(an) a. increase in the…

A: Investment demand is constructed to depict the relationship between the interest rate and amount of…

Q: Which of the following statements is FALSE? O The value of total income is equal in value to total…

A: Answer : Total income is always greater than  total output

Q: Calculate the gross value added at FC. Sales is 180 billion, rent 5 billion, subsidy 10 billion,…

A: Given values: Sales = 180 Rent = 5 Subsidy = 10 Change in stock = 15 Raw material = 100 Profit = 25

Q: The most important determinant of consumption and saving is the A. price level. B. level of income.…

A: "Consumers or buyers in economics demand commodities and services and they meet their consumption…

Q: Suppose we have the following annual information about a wine producer of Shiraz: wages $300,000,…

A: Value added is a measure of economic contribution that a business or producer makes to a product…

Q: exhibit above, for the specific factors model, a rise in the price of cloth everything else constant…

A: The real income of the capital owner remains constant.

Q: contribution to current year's GDP when a home maker enters the workforce, taking a job that pays…

A: Given: Job salary per year: $10000 Professional child care services per year: $4000

Q: If the marginal product of capital is lower than the cost of capital, then a. the value of q is…

A: The increase in total production when there is an additional labor unit being added and all other…

Q: Tax increases on business income decrease aggregate demand by decreasing O business investment…

A: A tax is an obligation to government by residents of a country for consumption and production. It is…

Q: If a college professor's income has increased by 3 percent at the same time that prices have risen…

A: Inflation is the general rise in the prices of goods and services in an economy, over a period of…

Q: Suppose you are provided with the following information about an economy that consists of just three…

A: Gross Domestic Product is sum of value of output that is produced in a nation in a given period of…

Q: ) An increase in the number of hours worked would a. shift the production function downward. b.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Households receive a total income of $5 million. Of this, $3.5 million are wages received for labor…

A: Given: Total income=5 million Wages received=3.5 million Rent payment=1 million Interest…

Q: If firms produce goods but does not sell them to final consumers these increases in inventory…

A: Inventory accumulation is a situation in which the costs of the business increases due to unforeseen…

Q: None

A: Ans. ) Given the question, there are four sectors in the economy: mining, lumber, energy, and…

Q: In the circular flow of income O Households demand goods and services that are supplied by firms,…

A: In the circular flow of income  households demand goods and services that are supplied by firms…

Q: With the help of appropriate examples, explain the concept of value added.

A: Product or value added method is a method of calculating Gross Domestic Product.

Q: Question 25 A computer company builds a new factory. This building is included in the category of…

A: The value of all final goods and services in an economy over the course of a year is referred to as…

Q: The production function shows the relationship between Oa potential and real GDP. Ob. inflation and…

A: The production function shows the relationship between physical inputs and output.  The production…

Q: interest payment = 15, transfer payment = 50, capital consumption = 10, indirect taxes 5, dire…

A: National income means the value of goods and services produced by a country during a financial year.…

Q: Durable goods $3,000 Services 6,000 Business purchases of capital goods 400 Fixed investment 850…

A: Investment in an asset will generate a return in the future. The additional gain by investing in…

Q: $500 400 300 200 100 $100 300 200 Real GDP 400 -C+lg 500 Refer to the diagram for a private closed…

A: A private closed economy refers to an economic system in which all economic activities occur within…

Q: If the interest rate rises, business invest and the shift to the O More; AD; right More; SAS; left…

A: The action by the monetary authorities to either expand or tighten the economy in terms of money…

Q: The labor supply curve shift following a decrease in the capital stock is a result of A.…

A: Exploring the Labor Supply Curve Shift Dynamics:The labor supply curve represents the relationship…

Q: The typical family on Planet Econ consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk. In…

A: Family on planet econ consumes three goods. The three goods are Pizza,  jeans, and milk  This family…

Q: Which of the following is an intermediate good? Gasoline purchased for a ski trip to Colorado. O The…

A: In a broader basis we can categories goods as intermediate and final goods. As the name suggests,…

Q: Given the information about hypothetical economy XYZ, in which milk is an intermediate…

A: Milk is intermediate good so it will not be included in the GDP. For the real GDP of 2019, consider…

Q: The salary of a consumer increased from ¢90, 000 to ¢110,000, which represents his salary for 2021…

A: Given: Salary in 2021=90000 Salary in 2022=110000

Q: The investment component of GDP has accounted for about ___% of total GDP, including a.…

A: In economics investment meaning is different from accounting sense, It means addition to capital…

Q: Which of these statements is true about the circular flow of income? O a. Income moves from…

A: Circular flow of income is nothing but the model of economy which shows transactions in the form of…

Q: Which of the following is a "stock" (as opposed to a "flow") type of variable? O a. The minimum wage…

A: "In economics, a stock variable is a variable which is measured at a particular point of time and is…

Q: . _______ Demand is aa. relationship between prices and the quantities purchased by buyers.b.…

A: Demand and supply are the two fundamental forces of economics which are necessary for  establishing…

Q: Which of the following are stock variables? Which are flow variables? A. capital B.per-capital GDP…

A: Stock variableA stock variable, in economics, refers to a quantity or value that is measured at a…

Q: Suppose that a painter uses 3 pieces of canvas valued at $50 each and paint valued at $150 total.…

A: Cost on Canvas = $50 per unit Quantity of Canvas = 3 Cost on paint =  $150 Paintings worth = $200…

Q: Investment (I) includes: O the amount spent on stocks and bonds. O the amount spent on new factories…

A: expenditure approach: GDP= consumption+investment +government expenditure+net exports

Q: 2. The real wage is the return to labor measured in: O a. dollars. b. units of output. O c. units of…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If the value of net exports is negative, then O exports exceed imports. O imports exceed exports. O…

A: Net exports = Exports – Imports

Q: Refer to Exhibit 7-1. What is the value of national income? a. $4,542 Ob. $4,351 c. $2,996 d. $4,252…

A: National income is the value of all the goods and services produced by the normal resident of an…