Some Econ - Assignment Essays

question

Let the subscript d denote domestic goods and services and f foreign goods and services. For example, Cd = consumption of domestic goods and services and If = investment expenditure on foreign goods and services. Then, the identity
Y = C + I + G + NX, where
Y = GDP,
C = consumption,
I = investment,
G = government purchases of goods and services,
NX = net exports of goods and services,
can be rewritten as:
Y = C + I + G + NX
= Cd + Cf + Id + If + Gd + Gf + EX − IM: where EX = exports and IM = imports
= Cd + Id + Gd + EX

answer

Cf+If+Gf=IM

The amount of spending by the ultimate users of domestic output

question

A good that is itself produced and is used to produce other goods but is not used up in the same period that it is produced is called

answer

Capital Good

question

Stocks of unsold finished goods, goods in process, and raw materials held by firms are

answer

Inventories

question

Goods used up in the production of other goods and services in the same period that they themselves were produced are

answer

Intermediate Goods

question

How does GDP differ from GNP?

answer

GNP measures the output of factors of production owned by a nation, while GDP measures production taking place in a nation.

question

If a country employs many foreign workers, GDP is likely to be
_______ than GNP.

answer

Higher

question

The components of total spending are

answer

consumption, investment, government spending, and net exports.

question

Why are imports subtracted when GDP is calculated in the expenditure approach?

answer

They are produced abroad, and GDP only counts domestic production.

question

Now, the New Jersey state government pays you an additional $5,000 fee to appear in a TV commercial publicizing the state lottery. How would this change your answer?

answer

$5,000 in government spending.

question

A reputable study shows that a particular new workplace safety regulation will reduce the growth of real GDP. Is this an argument against implementing the regulation?

answer

Yes, because any activity that increases real GDP also increases well-being.

question

You are given the following information about an economy:
Gross private domestic investment = 30
Government purchases of goods and services = 25
Gross national product (GNP) = 260
Current account balance = −20
Taxes = 60
Government transfer payments to the domestic private sector = 30
Interest payments from the government to the domestic private sector = 20
(Assume all interest payments by the government go to domestic households.)
Factor income received from rest of world = 8
Factor payments made to rest of world = 8
Find the following, assuming that government investment is zero.

answer

...

question

answer

Net factor payments from abroad = 0.
GDP = 260
Net exports = −20
Consumption = 225
Private saving = 25
Government saving = 25
National Saving = 50

question

Given Pt-1 = 130.0 and Pt = 137.8,
calculate the inflation rate in period t:

answer

question

The Bureau of Economic Analysis just announced that real GDP in the most recent quarter was
$17,588.8 billion (chained dollars) and in the prior quarter it was
$17,646.4 billion.

answer

-0.3%

question

In general, if P0 is the price level at the beginning of an n-year period and Pn is the price level at the end of that period, the average annual rate of inflation p over that period must satisfy the equation
(1 + π)n = Pn/P0.
The GDP deflator in Econoland is 250 on January 1, 2015. The deflator rises to 319.1 by January 1, 2020, and to 357.4 by January 1, 2021.
What is the average annual rate of inflation over the 5 years between January 1, 2015, and January 1, 2020? In other words, what constant yearly rate of inflation would lead to the price rise observed over those 5 years?

answer

The average yearly rate of inflation that would lead to this price rise is 5.0%.
What is the average annual rate of inflation over the 6 years between January 1, 2015, and January 1, 2021? In other words, what constant yearly rate of inflation would lead to the price rise observed over those 6 years?
The average yearly rate of inflation that would lead to this price rise is 6.1%.

question

Suppose an economy has the production function Y=AK^0.3*N^0.7.
If A = 28, K = 20,371, and N = 158, the value of Y = 18451845. (Round your answer to the nearest whole number.)

answer

the value of Y = 18451845. (Round your answer to the nearest whole number.)
In this part, you will calculate the marginal product of labor numerically. Do this by increasing N by 1 and then calculating the new level of output.
If N increases by 1 to 159, then output becomes Y = 18531853. (Round your answer to the nearest whole number.)
Based on the results above, the marginal product of labor equals 88. (Round your answer to the nearest whole number.)

question

The production function slopes upward because

answer

additional units of input lead to additional output.

question

The production function's slope declines from left to right because

answer

there is diminishing marginal productivity because at least one input is fixed.

1 of 18

question

answer

Cf+If+Gf=IM

The amount of spending by the ultimate users of domestic output

question

A good that is itself produced and is used to produce other goods but is not used up in the same period that it is produced is called

answer

Capital Good

question

Stocks of unsold finished goods, goods in process, and raw materials held by firms are

answer

Inventories

question

Goods used up in the production of other goods and services in the same period that they themselves were produced are

answer

Intermediate Goods

question

How does GDP differ from GNP?

answer

GNP measures the output of factors of production owned by a nation, while GDP measures production taking place in a nation.

question

If a country employs many foreign workers, GDP is likely to be
_______ than GNP.

answer

Higher

question

The components of total spending are

answer

consumption, investment, government spending, and net exports.

question

Why are imports subtracted when GDP is calculated in the expenditure approach?

answer

They are produced abroad, and GDP only counts domestic production.

question

Now, the New Jersey state government pays you an additional $5,000 fee to appear in a TV commercial publicizing the state lottery. How would this change your answer?

answer

$5,000 in government spending.

question

A reputable study shows that a particular new workplace safety regulation will reduce the growth of real GDP. Is this an argument against implementing the regulation?

answer

Yes, because any activity that increases real GDP also increases well-being.

question

answer

...

question

answer

Net factor payments from abroad = 0.
GDP = 260
Net exports = −20
Consumption = 225
Private saving = 25
Government saving = 25
National Saving = 50

question

Given Pt-1 = 130.0 and Pt = 137.8,
calculate the inflation rate in period t:

answer

question

The Bureau of Economic Analysis just announced that real GDP in the most recent quarter was
$17,588.8 billion (chained dollars) and in the prior quarter it was
$17,646.4 billion.

answer

-0.3%

question

answer

question

Suppose an economy has the production function Y=AK^0.3*N^0.7.
If A = 28, K = 20,371, and N = 158, the value of Y = 18451845. (Round your answer to the nearest whole number.)

answer

question

The production function slopes upward because

answer

additional units of input lead to additional output.

question

The production function's slope declines from left to right because

answer

there is diminishing marginal productivity because at least one input is fixed.

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