Suppose that real domestic output in an economy is 25 units, the quantity of inputs is 20, and the price of each input is $10. The per-unit cost of production in the economy described is Multiple Choice $8. $50. $5. $2.50.
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A: Y = C + I + G Putting given values, Y = 10 + 0.5 x [Y + 20 - 0.1Y] + 100 + 0.05Y + 100 + 20 + 0.1Y Y…
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A: Answer (1): Consumer price index: a consumer price index shows the average price of a market basket…
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A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Suppose that real domestic output in an economy is 100 units, the quanity of inputs is 10, and the…
A: Cost of Production is the spending that is incurred on inputs like labor, capital, and other raw…
Q: Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 2, and the…
A: Productivity is defined as the output generated by one unit of input of production. In mathematical…
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A: Introduction We have given data of a closed economy. National income of an economy can be defined as…
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A: Note:- Since we can only answer one question at a time and the exact one is not specified, we'll…
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Q: if the value of GDP in other countries decreases. c) Resale does not increase the GDP.
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A:
Q: Government initally increased spending from 50 million to 10Omillion . Household responded by…
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A: Net exports = Exports – Imports
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A: Gross domestic product: Gross domestic product or GDP is the final value of all the goods and…
Q: All Numbers are in S Billion Output Consumption Income Spending Net Taxes 100 Investment Government…
A: In an economy, unplanned inventory refers to the amount of output gap between the actual output and…
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A: Profit formula: Profit = Total Revenue - Total Cost
Q: A firm's production is Q= 60L-0.02L² Where Q denotes output and L denotes the size of the workforce,…
A: A firm's production function is; Q= 60L-0.02L2 where; Q denotes output L denotes size of workforce…
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A: Disclaimer :- since you asked multipart question we are solving first 3 subparts as per guidelines .…
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A: Personal consumption expenditures refer to amount spent by consumers on various goods and services.…
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A: The answer is part c) i.e. GDP C 140 135 180 165 220 195 260 225…
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A: Answer: Correct option: 3 (There is no tendency for output to change) Explanation: The equilibrium…
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- During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent and utilities. The firm’s owner has provided $750,000 of her own money instead of investing the money and earning a 10 percent annual rate of return. Question: Higher personal taxes in the U.S. will affect personal disposable income which in turn will affect the domestic demand for goods and services. Costs of production and inputs however continue declining. What do you expect the U.S. output and prices in the near future. Assume we are moving from the old equilibrium to a new equilibrium. Please state clearly your assumptions and include a graph to support your answer.Suppose that real domestic output in an economy is 20 units, the quanity of inputs is 2, and the price of each input is $4. The level of productivity is?Input Quanity 100 150 200 Real domestic output 200 300 400 The table gives information about the relationship between input quantities and real domestic output in a hypothetical economy. If the price of each input is $12, the per-unit cost of production in the economy is?
- Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70b) An economy produces only steel and coal. These two commodities serve as intermediate inputs in each other’s production. 0.3 tonne of steel and 0.5 tonne of coal are needed to produce a tonne of steel. Similarly 0.2 tonne of steel and 0.4 tonne of coal are required to produce a tonne of coal. 3 and 6 labour days are required to produce a tonnes of coal and steel respectively. The economy needs 560 tonnes of coal and 120 tonnes of steel. Required (i) Calculate the gross output of the two commodities. (ii) Compute the total labour days required (iii) Distribute the output obtained in (i) among the various users.Suppose an economy produces only 2 products that will also be used for directconsumption, as per the article at the end of the exam: chicken wings and donuts. Inthe second quarter of 2021 (the base period), 180,000 pounds of chicken wings wereproduced, at a value of $3.50 per pound, while in the second quarter of 2022,production of chicken wings increased to 200,000 pounds, at a value of $3.75 perpound. In the second quarter of 2021 (the base period), 85,000 donuts were producedat a value of $0.85 per donut, while in the second quarter of 2022, donut productionincreased to 100,000 donuts, each at a value of $0.95 per donut. The population inthis economy is 1000 individuals in 2022, while the number of hours worked in 2022is 5000. Also, the quantities that were produced in 2021 represent the quantities thatwere purchased by the typical household, meaning that everything that was producedwas sold.d. Solve for the amount of labor productivity in the second quarter of 2022.e. Solve for the…
- Suppose you are a worker in the construction industry in the state ofToronto, Canada. The MPL in this industry is (see attached image) where Kc and Lc are the amounts of labor and capital, respectively, in the indus-try. If Toronto has 30,000 construction workers and 120,000 units ofconstruction capital, what is your MPL)? Note: Attached is the formula.National Income DeterminationThe following figures are from data on Good Island EconomyItems $mNet private investment 940Depreciation 56Compensation of employees 2 256Corporate taxes 416Personal taxes 756Personal Consumption expenditure 4 386Government purchases 3 182Indirect business taxes minus subsidies 482Payment of factor income to the rest of the world 95Corporate profits minus dividends 56Government transfer payments and interest 243Exports 855Receipts of factor income from abroad 186Imports of goods and services 385Social insurance payments 332 Required: Use the above information to answer the followingi.) Calculate for Good Island:a. Gross private investment b. Gross Domestic product c. Gross National Product d. Net National Product e. National income f. Personal Income g. Disposable Personal IncomeThe Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales volume appears to be affected by changes in the price of the planes and by the state of the economy as measured by consumers' disposable personal income. The following data pertaining to Reliable's aircraft sales, selling prices, and consumers' personal income were collected: Year Aircraft Sales Average Price Disposable Constant Income (Dollars) (In constant 2006 dollars, billions) 2006 525 16,800 610 2007 450 8,000 610 2008 400 8,000 580 The arc price elasticity of demand between 2006 and 2007 is: The arc income elasticity of demand between 2007 and 2008 is: Assume that these estimates are expected to remain stable during 2009. Forecast 2009 sales for Reliable assuming that its aircraft prices remain constant at 2007 levels and that disposable personal income will increase by 7%. Also assume that the arc…
- 29) How many units of labor will the AquaPlant hire based on the figures from the table? 30) What is the economic concept associated with the decline in MPL as the number of labor units increase?Calculate the intermediate consumption fastprove that dMRTS/dL<0 when FKL > 0 where MRTS =MPL/MPK MPL= marginal product of labor MPK - marginal product of capital
