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The consumption function is given below.
Autonomous consumption refers to the level of consumption when the income is $0.
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- What is the relevance of manufacturing businesses on national output?What is GNP? GNP is the market value of all the final goods and services _____. A. produced within a country minus depreciation B. produced within a country C. produced anywhere in the world by the factors of production supplied by the residents of that country D. produced anywhere in the world by the factors of production supplied by the residents of that country minus exportsDiscuss the differences between the traditional HDI in comparison to the “new” (NHDI) formulation. In what ways do you think either one is a better measure of human development?
- (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…Hb is 0 here as B specializes in home production and tb= 1, while ha 1 and ta=0Question 3Consider two countries: St. Lucia and Barbados, labelled as L and B). In both countries the production function is Cobb--Douglas:Y = AK1/3L2/3The population growth rate is 0.1, physical capital depreciates at the rate of 0.1, and A=1. In Guyana the savings rate is sL=0.2 and in Barbados it is sB=0.4.a. Write the production function in terms of output per capita (Y/N). b. Find the steady-state values of the capital-labor ratio (K/N) in both countries. c. Find the steady-state values of the output per capita (Y/N) in both countries.d. In which of the countries is consumption-per-capita higher in the steady‐state?
- Which of the following equations is correct for an economy that does not have a government or a foreign sector? Multiple Choice MPC × MPS = 1 MPC/MPS = 1 MPC - MPS = 1 MPC + MPS = 1Consider a frugal closed economy without money market. Assume there is no government or exports/imports. The economy is described by the following set of equations. C=1000+0.5⋅Y ID = 600 What is the equilibrium output Y* a)4000 b)2000 c)3200 d) 1600It is expected that in the next twenty years the gross domestic product of China will become larger than the gross domestic product of the United States. When this happens, what does it suggest about the standards of living in both countries?
