For each of the following activities, identify the flow of dollars as either household-to-firm or firm-to-household. Activity Flow of Dollars Poornima earns $10,000 from 40% ownership of her family business. Kate spends $100 for a piano lesson. Clancy earns $8 per hour working at a fast-food restaurant. Eileen pays a storekeeper $4 for a bag of oranges.

For each of the following activities, identify the flow of dollars as either household-to-firm or firm-to-household. Activity Flow of Dollars Poornima earns $10,000 from 40% ownership of her family business. Kate spends $100 for a piano lesson. Clancy earns $8 per hour working at a fast-food restaurant. Eileen pays a storekeeper $4 for a bag of oranges.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which type of income is composed of both the labour income and capital income of those person who provide both labour and capital services One word
Total factor productivity refers to: a. total production in the economy b. all factors of production c. total production in the economy due to the primary factors of production d. factors of production other than the primary factors
The table below shows the number of workers and total output. Calculate marginal and average product for each worker. Number of Workers Total Production Marginal Product Average Product 1 100 2 220 3 300 4 340 The marginal product of the third worker is Blank 1 and the average product when three workers are employed is The marginal product of the fourth worker is Blank 3 and the average product when fourth workers are employed is
Katie quit her job which paid her $30,000 a year in order to start a pizza restaurant. In her first year, she used $100,000 she had in her retirement account and bought a pizza oven, tables, and chairs for her restaurant. If she did not buy the oven, tables, and chairs she would have left the money in her retirement account and earned a return of 10%. She also spent $50,000 on pizza ingredients and $30,000 on wages for a worker she hired. Her total revenue for the year is $110,000. What is Katie’s economic profit for this year?
Sonya used to earn $25,000 a year selling real estate, but she now sells greeting cards. The return to entrepreneurship in the greeting cards industry is $14,000 a year. Over the year, Sonya bought $10,000 worth of cards from manufacturers and sold them for $58,000. Sonya rents a shop for $5,000 a year and spends $1,000 on utilities and office expenses. Sonya owns a cash register, which she bought for $2,000 with funds from her savings account. Her bank pays 3 percent a year on savings accounts. At the end of the year, Sonya was offered $1,600 for her cash register. Calculate Sonya’s explicit costs, implicit costs, and economic profit. Use the following information to work Problems 2 to 4. Yolanda runs a bullfrog farm. When she employs 1 person, she produces 1,000 bullfrogs a week. When she hires a second worker, her total product doubles. Her total product doubles again when she hires a third worker. When she hires a fourth worker, her total product increases but by only 1,000…
The degree of convexity of an isoquant determines the degree of substitutability of factors of production. Do you agree? Explain.
Alexandro, a French national is working as a Manager in an international company in the United States. Alexandro supervises about twenty two product engineers and five technicians in an automobile manufacturing unit. The technicians and engineers report to Alexandro every Tuesday of the week to update of their work and Alexandro finds this very taxing and cumbersome (stressful). In fact, Alexandro proposed to introduce a paper-report system where all the employees he supervises can write and submit paper-based reports. But, the management rejected his idea citing more bureaucracy to which Alexandro told his immediate boss, "This is how we do it in France. It is the right way and perhaps this should be implemented here too." You understand that Alexandro has adopted: A. Stereotyping B. Ethnocentrism C. Cultural pluralism D. None of the above
Define the term cost-of-living index?
Dina is working for a consulting firm making $60,000 per year but considers starting her own consulting company. Dina has determined that to launch the business, she needs to invest $100,000 of her own funds. The annual cost of running the business will include $70,000 for the rent of the office space, $210,000 for employee wages, and $5,000 for materials and utilities. Dina plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rate of return) on investments in the economy is 6%. Dina's total implicit cost per year is . Dina's total cost per year is .
An example of a flow variable is a. capital. b. consumption expenditure by households. c. the machinery owned by a firm. d. the cash held by households.
The information below shows the relationship between the number of workers and the amount of computer chips they can produce. Computer Chip Factory Labor and Production Levels Labor (number of workers) Total Product (computer chips) 0 1 2 3 4 O 100 250 450 550 What is the average product when there are two workers?
Identify 10 examples of direct factors (labor, capital, technology, resources) used for production and 10 examples of indirect factors (i.e factors other than labor, capital, technology, or resources).