Suppose it costs $52,000 per year to live in City A. It costs $90,000 to live in City B. If you are offered $69,000 to work and live in City A and you are offered $110,000 to work and live in City B, which offer is better in terms of purchasing power
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- With reference to the table given above, calculate: i. Gross Domestic Product at factor cost ii. Gross National Product at factor costThe nation of Kona cultivates coffee beans and cassava, from which all their consumer goods are produced. (a) Calculate the cost of the market basket of goods in the table in 20102010 and in 20152015. Show your work. (b) Use 20102010 as the base year to calculate the price indices for 20102010 and 20152015 for the market basket of goods in the table. Show your work. (c) In order for a citizen of Kona to maintain the same standard of living between 20102010 and 20152015, what percentage change in nominal income would be needed? Explain.Using the definition of the unemployment rate, is an increase in the unemployment rate necessarily a bad thing for a nation? And is a decrease in the unemployment rate necessarily a good thing for a nation? Explain.
- Suppose 35 000 000 people are in the labour force, 18 000 000 people are employed in the public sector and 15 000 000 people are employed in the private sector. How many people are unemployed?discuss possible variations in purchasing power due to price and income changesThe New York Times newspaper cost $0.15 in 1970 and $0.75 in 2000. The average wage in manufacturing was $3.23 per hour in 1970 and $14.32 in 2000. Given what you know about the increases in the price of the newspaper and wages, what does this tell you about workers’ well-being (as measured by standard of living or purchasing power)?
- Explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy. Give an example to help support your answer.Is it possible to protect workers from losing their jobs without distorting the labor market?Consider a country in which for goods (A, B, C, and D) are produced. The following table shows data for prices and quantities produced for three years. Production Price per unit Q1 Q2 Q3 P1 P2 P3 Good A 45 40 42 10 8 8 Good B 52 55 54 12 10 12 Good C 14 17 18 6 10 11 Good D 29 28 30 15 17 19 a. 1425 b. 1615 c. 1593 d. 2015 Nominal GDP for year 1 is equal to:
- In 2019, the population increases, and labor hours supplied increase by 10 at each real wage rate. What are the equilibrium real wage rate, labor productivity, and potential GDP in 2019? In 2019, the population increases, and labor hours supplied increase by 10 at each real wage rate. Does the standard of living in this economy increase in 2019? Explain why or why not. Suppose the following data describe a nation's population: Year 1 Year 2 Population 300 million 305 million Labor force 150 million 160 million Unemployed 7 million 7.2 million a. What is the unemployment rate in each year? How has the number of unemployed changed from year 1 to year 2 (must give the specific amount of change)? How is this apparent discrepancy between (a) and (b) explained?Which unemployment measure tells us if people are searching longer than usual to find a job? How do you know the number of people who work part-time for economic reasons? The _______ measure of unemployment tells us if people are taking longer than usual to find a job. _______ tells us the number of people who work part-time for economic reasons. A. U-1; U-2 B. U-1; U-6 minus U-5 C. U-2; U-6 minus U-5 D. U-3; U-2Use the data below to calculate the following: I. Personal Income II. Disposable Income III. Net National Income at basic price Compensation of employees 2000 interest 500 rent 700 Profits 800 Employer’s contribution to social security 20 Consumption of fixed capital 100 Net indirect tax 250 Net exports 70 Net factor income to abroad 150 Mixed income of self employed 1500 Net current transfers from the rest of the world 250 Current transfers from the government 100 Subsidies 25
