Jars of Peanut Butter The following table shows the data for a hypothetical economy in a specific year. Years 6-9 The following table shows data on a hypothetical country's real GDP from 1990 through 1998: The green line on the following graph shows the economy's long-term growth trend. All figures are in billions. Personal consumption expenditures :$50 Proprietors' income: $33 Year. Which of the following items will be included in official U.S. GDP statistics? Which of these factors might have caused this change? Carrying amount. \end{array} & \begin{array}{c} Social Security contributions:$20 You'll get a detailed solution from a subject matter expert that helps you learn core concepts. There is a shortage of 10 thousand bushel. b. c. If the growth rate in year 3 had been a positive 2 percent rather than a negative 2 percent, what would have been Econoland's average growth rate over the five years? Given two of these values below, calculate the third. What employee stock-option compensation plans are offered by Coca-Cola and PepsiCo? What is the country's GDP for the year? Real GDP is nominal GDP divided by the Price Index Interest received on an AT&T corporate bond Included in this year's GDP All figures are in billions. (Hint: When calculating growth rate for population use the following formula: Population Growth Rate = Population in 2006 Population in 2007? Your actual body temperature is 98.4F98.4^{\circ} \mathrm{F}98.4F, but your thermometer gives a reading of 97.9F97.9^{\circ} \mathrm{F}97.9F. b. NDP= ( Note: Plot your points in the order in which you would like them connected. a. 95 billion a. a. 1 Consumption of fixed capital (depreciation) 27 Which point, A or B, best represents the combination of present and future goods in the United States? In 1984, real GDP = c. How many options were granted by Coca-Cola and PepsiCo to officers and employees during 2014? Her biweekly salary is $3,010. $80. Which of the following is included in the expenditures approach to GDP? Below is a list of domestic output and national income figures for a certain year. billion. Direct materials would remain unchanged at$50 per rim, as would direct labor at $56 per rim. This means that in that particular year the economy produced no capital goods at all." T}&\textbf{Total}\\[5pt] On December 31, 20X1, Figlmiller Corporation has one note receivable outstanding, a 90-day, 5%,$13,000.00 note dated December 1, and one note payable outstanding, a 120-day, 4%, $8,000.00 note dated November 16. 1.96% Explanation If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country? The nominal value of the goods for year 2 is $30.00 (= $20.00 + $6.00 + $4.00). c. What were the amounts of real GDP in 1984 and 2005? Goods Nominal GDP in 1984 is $70,000 = $10 (price 1984) 7,000 (output 1984). Would implementing the value engineering recommendation enable Elton to achieve its target cost for the deluxe rim. What is the growth rate of its real GDP?4% Quantity of Goods Year 1 economic investment and should not be counted as production of final goods and services. a. a.) Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. Assuming that all prices remain constant, what is this country's new level of GDP? National income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production because. Tex Net private domestic investment 33 Gross Investment: 25, Find the Real GDP: That $100 payment counts as _______________ for Tina and _______________ for Ted. a. if intermediate goods were counted, then multiple counting would occur. the market or money value of all final goods and services produced by the economy in a given year, whereas real GDP is adjusted for inflation, In order to compare changes in the standard of living over a series of years, we would use. b. Hypothetical Example for Comparison Purposes . Use the blue points (circle symbol) to plot the real GDP in each of the years listed. A. The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. -2 The retailer, in turn, brings in $160,000 from selling the bulbs directly to final customers. The expenditures approach: GDP = $245 (personal consumption expenditures) + ($33 (net private domestic investment) + $27 (consumption of fixed capital, depreciation) (the sum of these two components measures gross investment = $60)) + $72 (government purchases) + $11 (net exports) = $245 + $60 + $72 + $11 = $388 billion. The per-unit cost of an item is its average total cost (= total cost/quantity). Explanation If the yield on 333-year Treasury bonds equals the 111-year yield plus 2%2 \%2%, what inflation rate is expected after Year 111? Good: Apples \end{array} & \begin{array}{c} An economy's output, in essence, is also equal to its income because. Also assume that in 1984 each bucket of chicken was priced at $16. Transfer payments 13.9 \end{array} (c) R=2%,i=6%R=2 \%, i=6 \%R=2%,i=6%. Be sure to locate the equilibrium price and equilibrium quantity. Rishi Sunak is in Northern Ireland today to whip up support for his new post-Brexit deal after agreeing the Windsor Framework with the EU yesterday. She then develops two possible entrepreneurial business opportunities. c. 10 percent per year: Sales of secondhand items :8 a. ( 6 pts) Suppose that the linear equation for consumption in a hypothetical economy is C = 900 + 0.3 Y. Consumption of fixed capital 11.8 2. What was this economy's GDP in year 1? = (550-500/500)*100%=10% if intermediate goods were counted, then multiple counting would occur. = 343.7-11.8=331.9 If real estate prices tumble such that wealth declines by $80, what will be the new level of consumption at the $340 billion level of disposable income? With that version of the equation in hand, we can plug in our values for GDP, consumption, gross investment, and net exports. U.S. imports of goods and services 16.5 The following table sets forth the published high, low and period-end closing levels of the NDX Index for each quarter for the period of January 2, 2018 through February 27, 2023. 8 4 400 320, a.) Finally, assume that in 2005 the price per bucket of chicken was $20 and that 26,000 buckets were produced. Prices and Output in a Two-Item Economy Instructions: Enter your answers as a whole number. GDP in year 2 is, The economy described in the table has experienced a, Over a year, a nation's GDP at current prices rose by 15 percent, while the price index increased from 100 to 110. a. it is impossible to add two different goods, say, oranges and computers. Over this period, the nation's nominal GDP increased by 5 percent. SalesExpensesAvoidableUnavoidableTotalexpensesNetincome(loss)Dept. $1,100,000: The economy's stock of capital at the end of the year will be $1,100,000 (= $1 million initial stock of capital + $150,000 of gross investment - $50,000 of depreciation). a. We simply have a change in who owns a previously produced item. Then determine NDP. All values are in millions. Together with the availability of economic freedom data, governing intervals determine the period of analysis for each country. What if Dex doubled his purchases at each possible price?To the right The Fisher equation relates real (R)(R)(R) and nominal ( iii ) interest rates to the rate of (340-316). It does not involve the production of any goods and services and hence does not get counted in GDP. a. But due to her hectic schedule, she has just 15 hours per week that she can spend working at either the bookstore or at other potential jobs. Quantity Produced: 5 follow the long-run course of the economy to determine whether it has grown or stagnated. Suppose that work hours in New Zombie are 200 in year 1, and productivity is $8 per hour worked. Output and price data for a five-year period are shown in the table. She estimates the costs for the necessary land, labor, and capital to be $395,000 per year. Net foreign factor income 4 In one, she will quit her job to start an organic soap company. j. excluded What is iii ? Clarification of the central themes of Ned Block's article "The Harder Problem of Consciousness." In particular, explains why Block thinks that the question of whether a certain kind of robot is phenomenally conscious is relevant to the question of what phenomenal consciousness essentially is, that is, with what, if anything, it can be identified in terms of natural properties investigated . 7 3 Those three items would all be included in official U.S. GDP statistics because they all involve legal market transactions paid for with money. Personal consumption expenditures: $50 Name and describe two markets that are part of the financial system in the U.S. economy. c. excluded . h. An increase in leisure resulting from a 2-hour decrease in the length of the workweek, with no reduction in pay: Years 4-5, Assume the following data for a country: What is RRR ? The doubling time is approximately equal to the number 70 divided by the percentage rate of growth. All figures are in billions of dollars. \end{array} \\ PI = $ 291 billion During the course of the year, gross investment is $150,000 and depreciation is $50,000. c. c. Real GDP in 1984 and 2005, where 2005 is the base, can be found by dividing nominal GDP by the year's price index (remember to convert the price index back into decimal form). g. The publication and sale of a new college textbook: Price increases and quantity is indeterminate The retailer, in turn, brings in $155,000 from selling the bulbs directly to final customers. Person taxes: $26 Gross domestic investment 100 Value $70 30 -10 20 8 25 Category Personal consumption expenditures Purchases of stocks and bonds Net exports Government purchases Sales of secondhand items Gross investment Instructions: Enter your answer as a whole number. \text {Price} Use page 16 of a cash receipts journal. The Census Bureau provides survey data for consumption, investment, and government purchases. From these figures, we see that net domestic product equals: $17.0 trillion. All figures are in billions of dollars. Personal consumption expenditures $50 Statistical discrepancy 0 Final answer. Which of the following transactions would count in GDP? Disney also enjoyed later success with films such as Frozen and Frozen II, Zootopia, and The Lion King (with its computer-animated remake as the highest-grossing animated film ), as well as its Pixar brand, of which Incredibles 2, Toy Story 3 and 4, and Finding Dory have been the best performers. Use the figure to fill in the quantity supplied given supply curve S1 for each price in the following table (second column, gray-shaded cells). Category Value The data used in this work is retrieved from Renrendai - one of the largest marketplace lending platforms in China. Change in demand. ), 28 years How will an increase in state subsidies to public colleges affect the market for public and private colleges? Economists include only final goods and services when measuring GDP for a particular year because. What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year? Pham can work as many or as few hours as she wants at the college bookstore for $12 per hour. For the soap-making opportunity, she anticipates annual revenue of $465,000. Consumer expenditures are $7,735 billion, government purchases are $1,989 billion, and gross investment is $1,410 billion. \text{Sales}&\text{\$63,000}&\text{\$35,000}&\text{\$56,000}&\text{\$42,000}&\text{\$28,000}&\text{\$224,000}\\[5pt] Nominal GDP: 14964.4 Measuring Domestic Output and Nat, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. b. Notes. MPC= changing in consumption/ change in disposable income(18/200)=0.9 This approach adds personal consumption expenditures, gross investment, government purchases, and net exports. The table below contains information on three techniques for producing $15 worth of bar soap. 12 However, in early 2020, when the scientific world turned to the development of a COVID-19 vaccine, the process took less than a year. That $100 payment counts as _______________ for Tina and _______________ for Ted. \\ All tutors are evaluated by Course Hero as an expert in their subject area. \text {Annual} \\ Government purchases (G) 59.4 b. \text {Annual} \\ For example, revenue generated by illegal marijuana growers in Oregon will be hidden by the illegal growers so that no data will flow to the accountants who compile the GDP statistics. In this case, that comes out to be $10.5 trillion (= $12 trillion in personal income - $1.5 trillion in personal taxes). Gross domestic product is. a. The following table shows nominal GDP and an appropriate price index for a group of selected years. are useful to assess the health of an economy and formulate policies to maintain and improve that health. 10% e. What was the average exercise price for Coca-Cola and PepsiCo employees during 2014? Cases of target reactions and alternative gap-filling reactions identified using the E. coli metabolites subset. \( \$ \) billion. Use the graphical analysis of "present goods" versus "future goods" to explain the difference between China's growth rate and the U.S. growth rate. Economy A: gross investment equals depreciation \end{array} & \begin{array}{c} Solved by verified expert. Second, multiply the buckets of chicken in 2005 by the price of a bucket of chicken in 1984, which gives us $220,000 (= $10 22,000). N$35,00036,40012,60049,000$(14,000)Dept. Pair your accounts. A version that extends to multiple goods is as follows: First, multiply the buckets of chicken in 2005 by the price of a bucket of chicken in 2005, which gives us a value of $352,000 (= $16 22,000). Good: Banana (Last Word) Which of the following is a source of data for the investment component of U.S. GDP? If the economy moves from point a to point b over a 10-year period, what must have been its annual rate of economic growth? b. NDP = $343.7 (GDP) - $11.8 (consumption of fixed capital) = $331.9 billion. 5 percent per year: (a) R=1%,=3%R=1 \%, \pi=3 \%R=1%,=3%. Paul A. Gompers, Steven N. Kaplan, and Vladimir Mukharlyamov. Doing so, we see that G = $100 billion - $60 billion - $30 billion - (- $10 billion). What is the GDP price index for 1984, using 2005 as the base year? Explanation Quantity Produced: 10 Compensation of employees 223 They stopped every tenth person who came out of the bar and asked whether he or she thought drinking and driving was a severe problem. The formula is as follows: GDP = C + G + I. MPS Net foreign factor income: $4 Dollar value of distribution activity = $80 billion Nominal GDP: 16155.3 a. Gross domestic product does not include the value of the stocks and bonds bought and sold because these sales and purchases are not. Gross domestic product (GDP) $343.7 Next, assume that disposable income increases by $20 billion, consumption rises by $18 billion, and saving goes up by $2 billion. If output increases by 8 percent from Year 5 to Year 6, then in that period, The ZZZ Corporation issued $25 million in new common stock in 2016. 2003-2023 Chegg Inc. All rights reserved. $4 Consumptions of fixed capital (depreciation): $27 a. Explanation Note that the purchase of stocks and bonds and sales of secondhand items are not part of GDP. What is the amount of economic investment that has resulted from BBQ's actions? Fill in the blank entries in the table. &\textbf{Dept. Economic fluctuations and growth The following table shows data on a hypothetical country's real GDP from 1990 through 1998: Real GDP (Billions of Dollars) Year 1990 186 1991 188 190 1992 1993 194 1994 1995 1996 202 198 196 200 1997 1998 The green line on the following graph shows the economy's long-term growth trend. b. Because investment and capital goods are paid for with savings, higher savings rates reflect a decision to consume fewer goods in the present and more goods in the future. \hline \begin{array}{c} Price Index: 101.2, 14787 = Real GDP To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must be, A nation produces three products, A, B, and C. Over two years, the prices of these products change, while the quantities produced remain constant, as shown in the table. addition, subtraction, multiplication, and division. Quantity Produced: 20 What is the economic meaning of (1 - b)? We can conclude that, the price level rose by more than nominal GDP. Suppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings on candy bags and bags of peanuts. 500 billion Category Personal consumption expenditures Purchases of stocks and bonds Net exports Government purchases Sales of secondhand items Gross investment Billions of Dollars $ 70 30 -10 30 8 25 Instructions: Enter your answer as a whole number. In 2016, national income accountants would. Controller Michael Bender is surprised by the increase in cost of the deluxe model under ABC. Real GDP in year 4 is 450 In the economy described in the table, . Suresh Co. expects its five departments to yield the following income for next year. Consumption of fixed capital: $11.8 APC= New consumption/ new disposable income168/220=0.764, ADVANCED ANALYSIS Suppose that the linear equation for consumption in a hypothetical economy is C = 40 + 0.8Y.Also suppose that income (Y) is $400. ODept. Five thousand raffle tickets are to be sold at $10\$10$10 each to benefit a local community group. A similar thing holds true when Roberto gives his daughter $50 for her birthday. f. Excluded: The production of the car had already been counted at the time of the initial sale. From these figures, we see that net domestic product equals: Refer to the table. All figures are in billions of dollars. Statistical discrepancy 0 Purchases of stocks and bonds:30 1 The retailer, in turn, brings in $160,000 from selling the bulbs directly to final customers. 2 Suppose that a new smartphone app costs $100,000 to develop and only $0.50 per unit to deliver to each smartphone customer. Category Value Personal consumption expenditures $70 Purchases of stocks and bonds 30 Net exports -10 Government purchases 20 Sales of Corollary. the nominal value of all goods and services produced in the domestic economy, corrected for inflation or deflation. Explanation If the price of gold had not changed, what would have been the change in value of Glitter Gulch's real output? 3 In an economy, the total expenditures for a market basket of goods in year 1 (the base year) were $5,000 billion. U.S. exports of goods and services :$17.8 C is growing more rapidly than economy B. The value of transactions in the underground economy is estimated to be about what percentage of GDP in the United States? c. What term do economists use to describe this second outcome? b. Which of the following goods are usually intermediate goods and which are usually final goods? you should strictly prefer (8, 8) to (12, 4) and (4, 12). We observed . 4,500 5, a. The general price index in 2009 was 100 and in 2010 it was 180. b. Included: Income received by the bondholder for the services derived by the corporation for the loan of money. . \text {Income} It depends on what has been happening to priceson whether the economy has been experiencing inflation or deflation.
the following table shows the data for a hypothetical economy in a specific year