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Which of the following is studied under the theory of
a.
Business income
b.
Household income
c.
d.
All of these
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Solved in 2 steps
- In terms of the circular flow diagram, households make expenditures in the _____ market and receive income through the _____ market. product; financial resource; product product; resource capital; productWhat wil be the economic condition if GDP deflator is 107.The simple circular flow model shows that: households are on the buying side of both product and resource markets. businesses are on the selling side of both product and resource markets. households are on the selling side of the resource market and on the buying side of the product market. businesses are on the buying side of the product market and on the selling side of the resource market.
- What’s special about the numeraire in an economy? A. It’s used to calculate constant growth rate in per-capital GDP B. It’s only used in the income approach of measuring GDP C. It determines the level of factor productivity in the Cobb-Douglas function D. Its value is used to measure the prices of all other goods and servicesIf the GDP deflator is equal to 100, then for that year nominal GDP is equal to real GDP. True or False? explainUse the information given and show in a table format how value added method is used toCalculate GDP. 1. A forester chops down 200 trees and sells them @ N$50 each to the coal factory on a farm. The coal factory processes these trees into coals and sells the coal @ N$20 000 to the coal wholesaler’s. The coal wholesaler’s goes to the market and sell 500 bags of coal’s @N$100 each to pick n Pay. Pick n Pay sells the 500 bags of coal’s @ N$150 each to its customers. According to this example, how much value added do the coals contribute to the GDP?
- More than 4 million websites sell a combined $100 billion of pornography a year. Should these sales be included in (a) GDP and (b) an index of social welfare?Why do economists use the terms “investment” and “capital” in very diferentcontexts (physical investment and physical capital versus fnancial investmentand fnancial capital)?How is the GDP deflator calculated? A. GDP deflator = Nominal GDP Real GDP x 100 B. GDP deflator = (Nominal GDP + Real GDP) × 100 C) GDP deflator = Real GDP Nominal GDP× 100 D. GDP deflator= (Nominal GDP - Real GDP) × 100
- Which of the following is a withdrawal from the circular flow of income?a) Wages b) Consumption c) Savings d) Government expenditureWhich of these statements is true about the circular flow of income? a. Goods and services move from businesses to individuals b. Income moves from businesses to individuals c. All of these d. Labor services are provided by individuals to businessesIf nominal GDP is 42,000 and real GDP is 40,000 what is the GDP deflator? A.) 1.05 B.) 200 C.) 105 D.) 112.5