Q: Distinguish the final goods or services, intermediate goods or services, and capital goods?
A: Intermediate goods are defined as those goods which are a part of the final good as they have been…
Q: Q4: A farmergrows a bushelof wheat and sells it to a miller for $1.00. The miller turns the wheat…
A: The value addition defines the number of features or economic value added by an organization to a…
Q: The country of Econoland produces two goods: textbooks and widgets. Last year, it produced 200…
A: Production of both goods has increased in the Econoland. Production increases Or PPC shifts by…
Q: A forester chops down 200 trees and sells them @ N$50 each to the coal factory on a farm. The coal…
A: A more natural approach to try not to double count the worth of middle merchandise in total national…
Q: Assume that in country ABC: Consumption expenditure C = 70 Gross Investment expenditure IG = 20…
A: GDP is the value of the total goods and services that an economy produces in a given year.
Q: Gross domestic product measures the total expenditure on the economy’s input of goods and services.…
A: GDP is the term that measures the value of goods and services that are produced within a country's…
Q: Which of the following goods would be considered part of consumption (C) by the BEA? The purchase of…
A: GDP by expenditure approach = Consumption + Investment + Government spending + Net exports
Q: Suppose the economy is four sectors economy. The economy is represented by the following: C = 400 +…
A: Aggregate expenditure equation: AE = C + I + G + NX => AE = 400 + 0.40Yd + 25 + 40 + (-25) Note:…
Q: Final goods and services
A: Final goods and services are those goods which are the end products that means they are finally…
Q: Compute the economy's GDP using the expenditure approach. Assume that all transactions are 2019. C…
A: Hector spent for the maintenance of his car P 70,000 per month will be considered Consumption = P…
Q: how to find gross investment in the economy? is it correct if i add Net investment to Capital…
A: Investment: The term investment refers to the increase in the stock of capital. Here, capital is…
Q: How does the value of production relate to expenditure and income? The value of production ____. A.…
A: Production in economics is the process of creating things or services from inputs, both tangible and…
Q: Which statement best describes the circular flow of an economy? the flow between businesses and…
A: In economics, it can be seen that people interact with one another for making business, economic or…
Q: YAt right is a simplified circular-flow diagram for the economy of Micronia. (Note that there is no…
A: We are going to find the disposable income, Gross domestic product to answer this question.
Q: For each of the following products state if it is a final or intermediate good and explain why? A…
A: Intermediate goods: - Intermediate goods are those goods that are used in the production of other…
Q: a) With the aid of a consumption function, highlight the main determinants of consumption.
A: The relationship between the spending of consumer and it's determinants which effects this describes…
Q: An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are…
A: Nominal GDP is measured using the prices in the year in which the goods and services are produced.…
Q: What does it mean when talking about full income and price when considering the household…
A: The utility-maximizing choice on the initial budget constraint is M. The dashed horizontal and…
Q: Describe the four measures taken for investment?
A: Investment refers to the addition or acquisition of assets with the goal of making income or profit.
Q: Is the purchase of equipment or machinery a part of consumption or investment?
A: Economics is the study of how the scarce resources of society are exploited. Economics is a social…
Q: What is differance between three sector ecnomoy and four sector ecnomoy
A: The three-sector economy involves three sectors namely: households business, and government .The…
Q: An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are…
A:
Q: Compute the economy's GDP using the expenditure approach. Assume that all transactions are 2019. C G…
A: GDP = consumption expenditure + investment expenditure + government expenditure + net exports
Q: Is the purchase of equipment or machinery a part of consumption or investment? Why?
A: The concept of allocation of money with having an expectation in the future of a positive return or…
Q: Why do economists use the terms “investment” and “capital” in very diferentcontexts (physical…
A: In simple terms, Investment is a kind of an asset that is created with a purpose to grow money and…
Q: An economy produces three goods: organ, apple and organ juice. It is assumed that half of the organ…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 2. In the following situations, explain what is counted (or is not counted) in this year's GDP. A.…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Question 27 GDP is not a perfect measure of well-being; for example, O GDP incorporates a large…
A: The answer is - Option 2: GDP fails to account for the quality of the environment.
Q: ose an extremely simple economy wo goods, pillows and rugs. In the Lows are produced and sold at $5…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: relationships between total production, total income and total spending?
A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…
Q: The economy can be represented by economic models. One of the models we use to understand the…
A: 1) Circular flow diagram is a model which represents the flow of money and good and services from…
Q: What are the major discrepancies that exist between the manufacturing activity and the consumption…
A: Lets understand the coordination between the manufacturing activity and consumption activity with a…
Q: Assume the economy experiences an increase in non-market transactions and a decrease in market…
A: Non-market transactions is an economic transaction or activity that happens in the informal area…
Q: The following is an economy where there are only three goods produced. Wheat, dough, and Subway…
A: (Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What is the result of investments?
A: The amount of products purchased or accumulated per unit of time that are not utilised at the…
Q: The next four questions involve the following situation: Consider an economy with only three…
A: CPI refers to consumer price index. It is used to calculate inflation rate.
Q: What is GDP at factor cost
A: GDP stands for Gross domestic product To understand GDP at factor cost we first understand the GDP…
Q: PRODUCTION APPROACH 5) Each group of words below lists one final good and some intermediate goods.…
A: Since you have asked multiple questions, we will solve the first answer for you. If you want any…
Q: The relationship shown between the circular flow of goods and incomes is? a) Incomes and money b)…
A: Circular flow: The circular flow depicts the process that determines the national income and…
Q: Define intermediate goods and give one example of it.
A: Production is the process of producing goods or services. It involves the transformation of raw…
Q: What is the relation between Gross Domestic Product (GDP) and Gross Happiness Index (GHI): Select…
A: Gross domestic product (GDP) is the sum of the market value of final products and services…
Q: Which of the following is NOT accounted in the expenditure approach? a. Food b. Furniture c. Used…
A: GDP is the value of all final goods and services produced in an economy over a period of time. There…
Q: Use the information given and show in a table format how value added method is used to Calculate…
A: Answer - Need to calculate - Value of GDP Given in the question- A forester chops down 200 trees and…
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- Classify the type of expenditure in the following transactions. Tuition paid by your parents is _______. A new office building is _______. A. consumption expenditure; consumption expenditure B. investment; investment C. government expenditure; investment D. consumption expenditure; investmentWhat are the major discrepancies that exist between the manufacturing activity and the consumption activity? Why do these discrepancies exist?For each of the following products state if it is a final or intermediate good and explain why? A brick, a cell phone, and a barrel of crude oil.
- One of the following best explains consumption spending Select one: a. Spending on final consumer goods b. Spending on capital goods c. None of the option are correct d. Spending on infrastructurehow to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption? Gross Investment = Net investment + Capital ConsumptionQ1b An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are bought and consumed as final good; the other half is used to produce ketchup. In 2014, 30 KGs of tomatoes are produced at Rs.60 each, and 20 KGs of ketchup are produced at Rs.200 each. In 2015, 40 KGs of tomatoes are produced at Rs.80 each, and 30 KGs of ketchup are produced at Rs.195 each. Find the following: i) Assuming 2014 is the base year; calculate the real, nominal GDP and GDP deflator in 2014 and 2015.
- An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are bought and consumed as final good; the other half is used to produce ketchup. In 2014, 30 KGs of tomatoes are produced at Rs.60 each, and 20 KGs of ketchup are produced at Rs.200 each.In 2015, 40 KGs of tomatoes are produced at Rs.80 each, and 30 KGs of ketchup are produced at Rs.195 each. Find the following: i. Assuming 2014 is the base year; calculate the real, nominal GDP and GDP deflator in 2014 and 2015.The circular flow of income diagram shows: a) how households sell goods to firms b) how firms sell goods to banks c) how households produce services for their own use d) output equals income equals expenditureSuppose a simple economy produces five goods: chicken, potatoes, oranges, orange juice, and tractors. The tractors are sold to firms as a final investment expenditure and not sold to the households. Additionally, half of the oranges are used as an intermediate good to make the orange juice, while the other half are sold as a final good to the household. The rest of the domestic goods (chicken, potatoes, and orange juice) are sold to the household as a final consumption good. Quantity (2018) Price (2018) Quantity (2019) Price (2019) Chicken 100$7.00150$8.50Potatoes300$3.00500$4.00Oranges2000$5.003000$5.50Orange Juice500$8.00625$10.50Tractors10$1,000.0012$1,225.00 Using 2018 as the base year, what is the fixed-weight real GDP in 2018? A $25,600.00 B $15,600.00 C $10,600.00 D $20,600.00 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
- Use the information given and show in a table format how value added method is used toCalculate GDP. 1. A forester chops down 200 trees and sells them @ N$50 each to the coal factory on a farm. The coal factory processes these trees into coals and sells the coal @ N$20 000 to the coal wholesaler’s. The coal wholesaler’s goes to the market and sell 500 bags of coal’s @N$100 each to pick n Pay. Pick n Pay sells the 500 bags of coal’s @ N$150 each to its customers. According to this example, how much value added do the coals contribute to the GDP?Assume the economy experiences an increase in non-market transactions and a decrease in market transactions. Which of the following is true? A. GDP will increase B. The productive activity has increased. C. GDP will decrease D. The market value of services will increase.OS consumer goods in terms of capital goods in Figure below?
