Answered: Suppose the GDP for a country is $0.…

Suppose the GDP for a country is $0. Does this mean that there was no productive activity in the country? Explain your answer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: ou looked at many economic indicators, including data regarding unemployment, GDP, housing starts,…

A: Answer- Need to find- You looked at many economic indicators, including data regarding unemployment,…

Q: Refer to Figure 7.3. Suppose a firm moves along the isoquant from point a to point b. The rate of…

A: The rate of substitution refers to the rate at which one input can be replaced by another input in…

Q: Compute the "Per capita GDP", which can be obtained by dividing the GDP for each state by that…

A: To calculate the Per Capita GDP for each state, you need two pieces of data for each state: the GDP…

Q: Explain briefly. Growth Rate of Gross National Product (GNP)

A: Gross domestic product (GDP) is the all out financial or market worth of the relative multitude of…

Q: The Central African Republic has a GDP of $234,000 million and a population of 4.862 million.…

A: Real GDP per capita is calculated by. dividing GDP at constant prices by the population of a country…

Q: Country A produces GDP according to the following equation: GDP = 5/K and has a capital stock of…

A: Introduction Country A produces its GDP according to the following equation = 5 K And the capital…

Q: An emerging country has a real GDP of $1553.1 billion. After one year, real GDP has grown to $1677…

A: Real GDP is the money value of all final goods and services produced in an economy corrected for…

Q: Give five reasons why GDP is the most widely used measurement in determining economic growth and…

A: The measure that depicts the final value of goods and services being produced in an economy during a…

Q: An emerging country has a real GDP of $1446.7 billion. After one year, real GDP has grown to $1534…

Q: Which would one use if you wanted to understand why income changes in a country? A. development…

A: Cobb Douglas production function: Y = AKα L1-α. Where Y is output (or income) A is total factor…

Q: Country Population GDP Paraguay 7.045 Million $38,150 Million

A: Gross Domestic Product: It refers o the value of all the final goods and services that are produced…

Q: Read Eye on Potential GDP in the eText or click on the icon following exercise to open a copy. Then…

A: The amount of people available in the market for jobs is known as labour supply. These people demand…

Q: The following table gives nominal GDP, real GDP, and the population for two years. Find per capita…

A: Gross Domestic Product is the sum of all value added of a given economy. Value added is the…

Q: India has a higher GDP than Austria. Explain, using the concept of per capita GDP, why Austria…

A: Standard of living is the level of comfort, necessities, material goods, and wealth available to the…

Q: In 2016, country A faced unfavorable weather conditions. Wheat production decreased to 450kg.…

A: The gross domestic product (GDP) is the market value of goods and services produced within a year on…

Q: Suppose that real GDP in 2018 is $245,676 million and the population in 2018 is 4.8 million. Real…

A: Real GDP per capita is the ratio of GDP adjusted for inflation to the average population of a…

Q: "Italy includes cocaine, prostitution and black market alcohol in GDP figures" (The Independent,…

A: A crucial economic parameter known as the gross domestic product determines the total value of all…

Q: What type of variable is Log GDP per capita?

A: GDP per capita - Gross Domestic Product it is a measure of the economic total output of a country.…

Q: The value of production in an economy is $19,467 billion. The economy has 329,43 million people.…

A: The production value = $19467 billion Population in the economy = 32943 million

Q: Suppose that Indonesia's national production function is Y = K 05L 05, where Kis the amount of land…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Why is GDP per capita is not the same as Economic well-being?

A: "GDP is the market value of all the final goods and services produced in an economy at a given…

Q: Question If the GDP per capita for Country T is $45, 020 and the population is 153 people, what is…

A: The average income earned per person during a given period. Real GDP per capita = Real GDP /…

Q: Between 2013 and 2014, the Real GDP of a country fell. Which of the following is a potential…

A: The real gross domestic product is the total output or production of goods and services with a…

Q: As an economist with the World Bank you have been asked to measure the Gross Domestic Product for…

A: Gross domestic product (GDP) measures the market value of final goods and services produced by an…

Q: onsider Table 1 above. What is Uruguay's GDP per capita? A) $1,998.34 B) $7,454.30…

A: Gross Domestic product (GDP) measures the value of final goods and services produced within the…

Q: As you mentioned, measuring the black market economy is not easy. Do you have any thoughts on how to…

A: Black market:- One of the distinguishing features of this market is that it is done in cash. This…

Q: What is real GDP per capita if a country's real GDP is $5,968 billion and that country's population…

A: Real GDP per capita, also known as per capita income or income per person, is a macroeconomic…

Q: Per capita GDP and average annual incomes are much higher in Alberta than New Brunswick. New…

A: The Gross Domestic Product (GDP) is the total value added in a given economy (GDP). The difference…

Q: It is expected that in the next twenty years the gross domestic product of China will become larger…

A: While comparing the GDP in both countries, China becomes larger than the United States. This means…

Q: Based on the GDP information in the table below for 2 countries: Country A Country B GDP per…

A: A developed economy is one that is found in a developed country with a high level of economic growth…

Q: Saved Which of the following is not an adjustment made when comparing standards of living across…

A: When standard of living is compared across countries,each countrys GDP is not converted into U.S…

Q: Why does GDP depend on productivity in the long run?

A: Gross domestic product (GDP) is the monetary value of all final goods and services produced within a…

Q: How Real GDP is measured? Explain Real GDP of the United States at present time.

A: Real GDP is the final value of goods produced in an economy in a given fiscal year. It only…

Q: Why is average GDP per capita used In measuring standard of living for individuals in the economy?

A: Answer: Real GDP per capita = Real GDP per capita refers to the per-person real output of a country.…

Q: South Africa has a GDP of $10 billion (measured in U.S. dollars) and a population of 45 million.…

A: South Africa has a GDP of $10 billion (measured in U.S. dollars) and a population of 45 million. GDP…

Q: In 2014, GDP was $12 million and the price of the market basket was $40. In 2020, GDP was $15…

A: In 2020 production level was higher.

Q: Gross Domestic Product ( GDP) is limited as a measure of the productivity and output of an economy…

A: The GDP is the production of goods and services during an accounting year. GDP does not include the…

Q: In the year 2015: • real GDP was $19,281 billion • population was 303.04 million • the level of…

A: Real GDP Per capita is the ratio of Real GDP size and the population size. Real GDP in a year t =…

Q: Why do economists prefer to use real gross domestic product (RGDP) instead of nominal gross domestic…

A: The nominal GDP refers to the final goods and services produced at market price within the domestic…

Q: An economy produces three products, bags, computers and shirts. The prices and quantities of these…

A: GDP estimates the market value of an economy's final products and services generated over a certain…

Q: In 1980, Denmark had a GDP of $90 billion (measured in US dollars) and a population of 6.1 million.…

A: Given: Denmark GDP in 1980 = $90 billion Denmark population in 1980 = 6.1 million Denmark GDP in…

Question

Suppose the GDP for a country is $0. Does this mean that there was no productive activity in the country? Explain your answer

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

According to the table, Canada has the eleventh-highest GDP among the countries with the largest economies in the world. Does this mean Canada also has the eleventh-best standard of living? Fill in the blanks to complete the passage. World's Largest Economies by GDP, 2013 (1) (2) Country (3) (4) Per capita GDP (U.S. dollars) Rank 2013 GDP (billions of U.S. dollars) $53,042 United States $16,768 1 6,807 2 China 9,240 38,634 3 Japan 4,920 46,269 4 Germany 3,730 42,503 5 France 2,806 United Kingdom 41,787 6 2,678 11,208 7 Brazil 2,246 2,149 35,926 8 Italy 18,783 Russia 2,097 1,499 10 India 1,877 11 Canada 1,827 51,958 Drag word(s) be low to fill in the blank(s) in the passage. Canada's GDP is a that Canadians have the eleventh-best standard of living. A nation's better standard-of-living indicator, because it measures Using this measure, it looks like Canada has a better standard of living than all but one other nation. total productivity indicates does not indicate per capita GDP average…
A country has a Cobb-Douglas production function given by: Y = AK0.5H0.1 If total factor productivity is 46, human capital is 1,828, and the capital stock is 2,736, what will this country's GDP be? Do not round until your final answer, when you may round to two decimal places. Country A produces GDP according to the following equation: GDP 5K and has a capital = stock of 13,399. If the country devotes 13% of its GDP to producing or repairing investment goods, how much is this country currently investing? Rounds your answer to two decimal places.
In 1988 the value of RGDP was $9,000.38 billion and the population was 298.32 million. What was the value of real GDP per capita? Round to the nearest whole number. Do not enter a dollar sign.
Why do economists prefer to use real gross domestic product (RGDP) instead of nominal gross domestic product (NGDP) when measuring the economic growth of a country? Why is real GDP considered more relevant than the other?
Musashi plays the cello as part of a string duo and advertises booking opportunities using brochures he distributes in coffee shops around the city. Making one grayscale brochure costs $0.02, but adding color increases the cost to $0.08 per brochure. Musashi sets aside a monthly budget of $14.00 for creating brochures. The following graph shows three of Musashi's indifference curves for the number of grayscale and color brochures that he makes. Use the green line (triangle symbol) to plot Musashi's budget constraint. Then, place the black point (plus symbol) on the graph to indicate Musashi's optimal consumption choice given that budget constraint. GRAYSCALE BROCHURES 1000 900 800 700 600 500 400 300 200 100 2 0 0 25 50 75 100 125 150 175 200 225 COLOR BROCHURES 250 Budget Constraint Optimum ?. At the optimum that you indicated on the graph, Musashi's marginal rate of substitution is equal to 4 brochures color. in grayscale per brochure in
GDP does not take into account the underground economy, and offers measures of government production that are typically not based on market values True False
Applied Problems on Monetary Policy and Interest Rates 1. For each of the following questions, draw the Money Demand curve (MD) and Money Supply curve (MS) and label the equilibrium interest rate as i*. Also show how the MS- MD graph changes due to the given events and as a result how the equilibrium interest rate changes. (In your answer you should clearly state and show what happens to the MS and MD curves and also what happens to the interest rate).
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.
County A & Country B both recorded an increase in real GDP of 5% per year from 1970 to 2005. During this time, the population of country A grew at 7% per year & the population for Country B grew at 3%. Which of the following is true during this period? a. Per capita GDP was the same for both Country A & Country B b. Per capita GDP decreased for Country B only c. Per capita GDP decreased for both Country A & Country B d. Per capital GDP decreased for Country A only
Economists can do a reasonably good job of calculating GDP, GDP per capita, NDP, etc. Do you agree? Discuss some non economic sources of well being-including the quality of life, and intangible measures of life satisfaction. Are you expecting to be better off than your parents are?
indicators of change in economic activity that move concurrently with business activity is called?
The table attached gives data on the production and prices in a small economy. Use 2012 as the base period. What does nominal GDP equal in 2012? What does nominal GDP equal in 2013? What does real GDP equal in 2013? Calculate the growth rate in real GDP from 2012-2013