Investment (I) includes: O the amount spent on stocks and bonds. O the amount spent on new factories and machinery. O the amount spent on college tuition. All the above.
Q: The largest component of gross domestic income is Select one: O a. interest payments. O b. wages. O…
A: The largest component of gross domestic income is wages.
Q: When we add depreciation to net investment, we arrive at...............
A: When we add depreciation to net investment, we arrive at Gross Investment. Depreciation refers to…
Q: In national-income accounting, a fall in Ga (other things being equal) will be recorded if Select…
A:
Q: QUESTION 2 When a business purchases a new piece of machinery for $45,000, this purchase is…
A: The answer is - investment
Q: The Consumer Price Index is: O a number that measures the cost of a market basket of goods and…
A: Answer (1): Consumer price index: a consumer price index shows the average price of a market basket…
Q: a single day Raju, the parber, collects Rs 500 from haircuts; over this day, his equipment…
A: GDP or gross domestic product calculates the final value of the good or service, produced…
Q: True and False 1. total consuption expenditure by households includes expenditure by foreign…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
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: If price is $31 and output is 44 units Calculate total expenditure
A: The information given is as follows:- Price = $31 per unit Output = 44 units We need to find the…
Q: Households receive a total income of $5 million. Of this, $3.5 million are wages received for labor…
A: Given: Total income=5 million Wages received=3.5 million Rent payment=1 million Interest…
Q: A firm used $1,900 worth of peanuts and $100 worth of salt to produce peanut butter. This required…
A: In value added method, revenue – costs provides value that the firm added in the process
Q: Sales in a company are $188 million in 2009 and increase $208 million in 2010. Compute the…
A: The difference between the final and original numbers is what determines the percentage point…
Q: In a typical basket of goods and services, most of the income is spent on education and…
A: The price indexes are generally used to determine the price changes in an economy over a period of…
Q: A firm had 14 machines at the start of 2014. During the year, 2 machines were scrapped. In December…
A: Net investment in the year = new machines purchased – machines scrapped = 3 – 2 = 1 machine
Q: A firm used $1,900 worth of peanuts and $100 worth of salt to produce peanut butter. This required…
A: Value-added is a method of calculating the final value of the output of a firm and GDP without the…
Q: Mr Adam was purchasing 1 kg daal and 6 kg rice. This week Mr Adam is purchasing 2 kg daal and 5 kg…
A: The above question describes the concept of marginal rate of substitution. MRS is the amount of a…
Q: Question 2 The Personal Consumption Expenditures Price Index (PCEPI) is design to reflect Oonly…
A: Consumer spending on goods and services is measured by private consumption, often known as personal…
Q: State and explain the law of variable proportion with the help of schedule and graph
A: Law of Variable Proportion states that as more and more of the variable factor is combined with the…
Q: In an american firm value of output is $66,000 and change in stock is $15,000 find out sales of a…
A: As per the question we are given that value of output = $66,000 Change in stock =$15,000 we have to…
Q: In a given year, suppose a company spends $100 million on intermediate goods and $200 million on…
A: The production of the final goods and services passes through various stages of the production. At…
Q: Among the components of personal consumption expenditures (C) the spending of durable goods that…
A: The term personal consumption income (PCEs) alludes to a proportion of credited family consumptions…
Q: Investment (I) includes: O the amount spent on new factories and machinery. the amount spent on…
A: Investment can be defined as any asset acquired or money committed for the purpose of earning future…
Q: A firm has invested a sum of £100 million to construct new manufacturing plant. Workers spend 90 per…
A: "The size of investment multiplier tells how much a rise in income occurs when autonomous investment…
Q: The production of Mercedes Benz factory in Egypt is calculated with in: O a. Egypt's GNP b.…
A: Gross domestic product of a country is the sum of money value of goods and services produced in a…
Q: Variables expressed in terms of ...... are called ...... variables a) physical units / endogenous…
A: The nominal value of a variable (that is nominal variable ) such as income and wage estimates the…
Q: During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor…
A: In the US, a higher personal tax will affect the personal disposable income and also will affect the…
Q: The branch of economics that analyses the market behaviour of individual consumers and firms in an…
A: Definitions of all the options are: a) Gross Domestic Product: It is the sum of market value of all…
Q: 14. In 2020 consumption (Ci) for selected countries was as follows Jordan 2.5 billion $, USA 100…
A: The data is fixed in time when is is taken for a given year. And data is varaiable in component of…
Q: Calculate the value of GVAFC IF:- Sales = $180 Change in stock = $30 Purchase of raw material =…
A: The given information is as follows:- Sales = $180 Change in stock = $30 Purchase of raw material =…
Q: In this market firms purchase factors of production from households A. money market B.…
A: Factors of production: It refers to the variables of creation, assets, or sources of info used in…
Q: Question Each term (3 months) the current group of economics students completed a questionnaire as…
A:
Q: All of the following, except one, are examples of investment. Which is the exception? O A graphic…
A: An investment means a rise in the capital stock. Or in other words, it is referred to as the gross…
Q: estion 2 Which of the following are included in the calculation of an economy's wealth The market…
A: Wealth is the accumulation of valuable economic resources, which may be measured in terms of…
Q: Household spending on education is included in consumption of services. Select one: a. False b. True
A: Household spending on education is included in the consumption of services. Select one: a. False…
Q: A company in the United Kingdom earns $100 million by producing and selling advertising chances to…
A: Intermediate goods, producer goods or semi-finished products are goods, such as partly finished…
Q: Which of the following is NOT a problem associated with using Gross Domestic Product as a measure of…
A: The value of the total goods and services that are produced in an economy in any particular year is…
Q: If the value of net exports is negative, then O exports exceed imports. O imports exceed exports. O…
A: Net exports = Exports – Imports
Q: Gross Investment. .$1,200 Which of the following statements is correct? O The country's GDP Is…
A: here we calculate the value of GDP by using the given information and also change in NDP so the…
Q: At the beginning of the year, Tom's LTD had a capital stock of 5 machines. During the year, Tom…
A: Initially, Tom has 5 machines New purchased machines =3 Scrapped machine =2
Q: You live in Canada, and purchased a car manufactured in Japan this year from a dealer in Canada. The…
A: As we know that GDP is the calculated by adding all the market value of goods and services produced…
Q: What does ceteris paribus mean? O A. other things remain unequal ов. other things remain constant…
A: Ceteris paribus means other things remain constant or fixed. It is mainly used when we assume that…
Q: Speculative markets are markets that buy and use the materials purchased in the production of other…
A: Speculation is done where price is very volatile and are highly frequent. It helps by absorbing…
Q: An economy produces only steel and coal. These two commodities serve as intermediate inputs in each…
A: Solution. Here the technology matrix is given under Steel Coal Final demand Steel 0.3 0.2 120…
Q: A new highway linking two major towns is constructed. What would be the impact on the country's…
A: A country's production function explains the amount of output generated by the available amount of…
Q: It is known that the ABC oil company supplies consumers with 150 tons of products per day. The…
A: The opportunity cost of producing one additional unit of an item or service is known as marginal…
Q: oods and Services are exchanged and used As Final Consumption For Investment As Inputs in the…
A: Answer is given below
Q: Copy table and fill in missing figures
A: In a country many economic activities takes place such as production, consumption, buying, selling,…
Q: Factors of production are inputs used to consume goods and services. a. False b. True
A: In a market, different economic variables have their contribution in supply-side activities and…
Q: sing the data in the table, gross domestic product equals O A. $2,150. OB. $1,920. OC. $2,400. OD.…
A: GDP refers to production of goods and services during an accounting year.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- An automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor, $5,000 of capital and has a 20% sales markup to consumers. a. What is the total value of intermediate goods? b. What are the total payments to factors of production? c. What is the total value of sales? d. What is the value of GDP from the sale of this car?Mr Adam was purchasing 1 kg daal and 6 kg rice. This week Mr Adam is purchasing 2 kg daal and 5 kg rice. What can you conclude from the given information? Discuss all conclusions in detail.Compute the GNP using the Income Approach and Expenditure Approach. Personal Consumption ExpendituresP 1,059,000 Compensation of employees and entrepreneurial & propertyIncome of persons980,000 Government Income31,000 Indirect Taxes132,500 Exports of goods and non-factor services648,200 Fixed Capital Formation232,400 Government Services116,000 Imports of goods and non-factor services648,100 Subsidies3,900 Trade237,000 Increase in Stocks7,200 Corporate Income16,000 Depreciation Allowance176,000 General Government Consumption Expenditures86,500 Net Factor Income From Abroad20,600
- Y7 Using the following question: "Is the value of the final goods determined by the factors of production OR does the value of the final Goods determine the value of the factors of production?" How were the Marginalists different than previous economists?Price of petrol was Rs. 60 per litre in 2015 and Rs. 100 per litre in 2021. The average wage in manufacturing was Rs. 240 per hour in 2015 and 300 in 2021. a. Did workers’ purchasing power in terms of petrol rise or fall?The Consumer Price Index is subject to the substitution bias and me quality/new goods bias. Are the Producer Price index and the GDP deflator also subject to these biases? Why or why not?
- Discuss wether all firms in a country will welcome a change in people’s income.8. Based on the following wealth utilization, what is the best rank of prioritization in consumption recognized in Islam: i Your close friend who is poor and in need ii Your sister who needs to do medical surgery iii Donation to a charity foundation iv Contributed to the construction of Maahad Tahfiz i, ii, iv, iii ii, i, iii, iv i, ii, iii, iv ii, i, iv, iiiA changing-basket price index (Passche index) like the GDP deflator tends to:a. underestimate the change in the cost of living because it does not take into account that people can substitute less-expensive goods for ones that become more expensive.b. overestimate the change in the cost of living because the continual introduction of new goods makes consumers better off even if prices do not fall.c. underestimate the change in the cost of living because it does not reflect the reduction in consumers’ welfare that may result from the substitutions of less expensive goods for more expensive ones.d. overestimate the change in the cost of living because it takes into account that people can substitute less expensive goods for more expensive ones.
- (1) Recent measurements have shown a significant deterioration in the quality of the Scottish seaside. Which of the following statements are compatible with this observation? A. The real value of GDP has increasedB. The real value of GDP remains the same C. North Sea oil wells have dried upD. The price of swimming costumes has gone down (2) The impact of Covid-19 on happiness is negative because A. it decreased economic activityB. it coincided with BrexitC. it forced social isolationD. it obliged people to develop new Information Technology skills(i) A is correct(ii) A and B are correct(iii) A and C are correct(iv) All of the above are correct11 The statement that correctly describes the capital goods is __________. a. Labor power used for producing a product b. None of the options c. Goods and services that are consumed fully when purchased by the consumers d. Goods such as tools machinery etc. which are used to create final consumer goods1/3 of a unit of capital goods. 3 units of capital goods. 6 units of capital goods. 1/6 of a unit of capital goods.