In an island economy, farmers grow 150 potato, pay 25 in tax, eat 65, plant 60 in the yard. a. Y=___ potato b. C=___ potato c. I=___ potato d. G=___ potato
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In an island economy, farmers grow 150 potato, pay 25 in tax, eat 65, plant 60 in the yard.
a. Y=___ potato
b. C=___ potato
c. I=___ potato
d. G=___ potato
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Solved in 2 steps
- a. Consider an economy which produces and sells, among a host of other things, 100 million T‑shirts a year. The average T‑shirt begins life when a farmer plants seeds she put away last year, waters them, and harvests the cotton, then sells the cotton to a mill for $0.75, which sells the fabric to a T‑shirt factory for $1.50, which sells its T‑shirts to a wholesaler for $5, who sells it to Nordstrom for $10, which finally sells it to you for $17. Determine the impact of T‑shirts on annual GDP by calculating the value added of the entire production process. b. Now, calculate the amount spent on T‑shirts in a year if 100 million T‑shirts are sold, each for $17. How does this compare to the amount calculated through the value‑added method?The government reduces the tax burden (or tax rate), how the real GDP change a. if it is a closed economy b. if it is a small open economy c. if it is a large economyHow much are they spending for the products of the country. a. consumption b. investment c. gross national product d. all of the above
- Give the (2) different types of economy. Explain each type.The single biggest item state and local spending is spent on is its only one option a. education. b. health care. c. parks. d. hospitals.(1d) To measure a real increase in wages, the changes would have to be averaged. the wages would have to be adjusted for inflation overtime. (my guess) the increase would have to be compared to the growth in GDP. (1e) Jerusha lives in a country with a large amount of protection under the law for conducting business or bringing her ideas to the market with patten production. Because of the economic conditions what will Jerusha most likely do with her rainwater collecting invention? Keep her ideas in a notebook and sell them to the highest bidder. Find a country where she can develop her idea away from strong patent laws. Develop her invention and bring it to market with ease and minimal cost. (my guess) (1f) Over the past 50 years, which component of consumer spending has steadily gained as a percentage of the total? durable goods nondurable goods services (my guess) (1g) The distinction between real GDP and nominal GDP is important to determine which of the following? The…
- A. By what percentage did GDP decline in 2008? B. At that rate, how much output would have been lost in the $14 trillion economy of 2008?$ Billion C. How much income did this represent for each of the 300 million U.S citizens?a. You buy a pair of new cowboy hat on a trip to Texas . b.You buy a pair of vintage cowboy boots from your cousin in El Paso c. A cat burglar sells $10,000 of stolen jewelry to a fence d.apple issues $1 billion worth of new shares e.GM purchases $100 million worth of tires from Firestone f. A private company builds a new road in Memphis g.Stay-at-home parents provide an estimated $500 million of child care services . h.The government pays out unemployment benefitsQ31 assuming government choose to invest 100 000 in economy, calculate how much is going to the national income if PMC is 0.2 Select one: a. 125 000 b. 50 000 c. 500 000 d. 100 000
- Need help with this. Thank you 1. Explain why the Government Spending (G) component of GDP falls short of actual (total) government outlays or expenditures. - If Depreciation = $479 Gross private domestic Investment (I) = $716 Government spending = $924 Imports = $547 Personal Consumption Expenditures = $2,966 Exports = $427 a. How big is the GDP? b. How big is National Income?1: National income level in an open economy with government activities and data in the table what is it? Be sure to show how you did the calculation. GDP = 2,000 Gross investment = 500 Net investment = 300 Indirect taxes = 350 Subsidies = 250 Direct taxes = 200 Net foreign factor income = 400
