Which of the following transactions should should not be counted in GDP? Answer Yes or No and briefly explain your answer.

Q: Other things the same, people in the U.S. would want to save more if the real interest rate in the…

A: Savings is a positive function of interest rate according to the Classical model while it is a…

Q: Amit is using his money to buy assets like house , commercial land and machines . Write what is he…

A: Disposable Income: Disposable income is the income that remains after subtracting the taxes and this…

Q: s a student, why is there a need to study economic development, and how is this relevant to…

A: Economic development is the essential part of economics which is study by the student when he study…

Q: 1. It refers to the purchase of goods and services, including public consumption and public…

A: The measure that depicts the final value of goods and services during a specified period of time is…

Q: item billions of dollar  consumption ependiture 6258 investment 1623 government expenditure on goods…

A: Gross domestic product is the market value of all goods and services produced within a country in a…

Q: Problem 2: An economy has the following sectors: private households, government, grape producers and…

A: Gross domestic product, or, GDP refers to the value of all the final products that is manufactured…

Q: Societies choose what share of their resources to devote to consumption and what share to devote to…

A: a. Describe some forms of private spending that represent consumption and some forms that represent…

Q: Question 3 a. In a closed economy, GDP is $195,000, consumption is $120,000, private saving amounts…

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Q: To celebrate a big achievement of mine, I invited friends to my house for a party. Now, I am…

A: Given: Price of the bottle = $2 Price(P) and Quantity (Q) are: P1 = 1, P2 = 5 Q1 = 100, Q2 =200…

Q: The GDP of an economy is $1,000. We have other data as well: consumption = $600, taxes = $100, and…

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Q: For each of the following products state if it is a final or intermediate good and explain why? A…

A: Intermediate goods: - Intermediate goods are those goods that are used in the production of other…

Q: With the help of appropriate examples, explain the concept of value added.

A: Product or value added method is a method of calculating Gross Domestic Product.

Q: example of a significant aspect of an economy?

A: Economy- It is a group of activities related to production and consumption which helps in the…

Q: The government wants to build a new road. The government needs capital to finance the construction.…

A: Loan: It refers to the amount that is borrowed by the people to buy or invest in major things. The…

Q: 9) In Norway, most citizens are able to afford basic necessities and some degree of comfort. 9) This…

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Q: One of the following best explains consumption spending Select one: a. Spending on final consumer…

A: Consumer spending is the total amount spent on storage goods and services made by individuals and…

Q: importance of stock market

A: Stock market is a collection of market where buying and selling of stocks happen in an economy using…

Q: 1) Please answer the questions related to graph below: 30,000 Britain Japan Italy 25,000 China India…

A: We will answer the first three subparts only. Please resubmit the question with any other parts…

Q: 8. In a given year, a country's GDP = $9841, net factor payments from abroad = $889, taxes = $869,…

A: Private savings=GDP-Taxes-Consumption+Net factor income from abroad+Transfer received from…

Q: Use the following to answer questions Item In trillions of Rs. GDP 17.6 Govermment purchases 1.9…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: consume

A: The question concern the paradox of thrift. If all the people of the economy increase the proportion…

Q: Use real-life examples to explain issues related to old and new economies

A: The area of trade, distribution, consumption and production of goods and services in an economy is…

Q: Economics Article from the Sydney morning ""Battlers exposed again as budget crunch nears" On March…

A: Gittins stressed the importance of health care and according to him it was neglected in the budget.

Q: Investment in everyday life is: a. The purchase of goods and services b. The purchase of capital…

A: An asset bought or invested in to grow wealth and save money through hard-earned income or…

Q: 7.2 Draw a circular flow diagram showing the flow of factors of production and goods and services…

A: In this chart household, business firm and government are included and external sector is excluded…

Q: George and Al, stranded on an island, use clamshells for money. Last year George caught three…

A: Gross Domestic Product is the sum of all the goods and services produced in an economy in an…

Q: Refer to the following graph to answer the next six questions. Interest rate 6% Line 1 4% Line 2…

A: Equilibrium refers to that state in the economy when the quantity demanded of goods and services is…

Q: (b)       Lori is a student who teaches golf on the weekend and in a year earns $20,000 after paying…

A: The income of an individual refers to the total amount which is earned from all the sources over a…

Q: Firm X, a designer clothing company, buys $400 worth of silk from a silk trader and $30 worth of…

A: The chances of double counting is high in these type of activity.

Q: Monica grows coconuts and catches fish. Last year she harvested 1500 coconuts and 600 fish. She…

A: Consumption in economics refers to how households use commodities and services. Contrary to…

Q: 6) Use the figure below to answer this question. Interest Rate (%) 12 10 Loanable Funds (in billions…

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Q: a. Consider an economy which produces and sells, among a host of other things, 100 million T‑shirts…

A: Value-added selling is the particular selling process during which the sales rep does whatever it…

Q: Refer to the information provided in Table below to answer the question. Aggregate Income ($…

A: Given  Aggregate Income ($ billions) Aggregate Saving.          ($ billions) 0 -100 150 -85…

Q: If all quantities produced rise by 5 percent and allprices fall by 5 percent, which of the following…

A: When the quantity produced increases by 5 percent, it will increase the real GDP of the economy by 5…

Q: Based on the following wealth utilization, what is the best rank of prioritization in consumption…

A: As per given scenario, A person should first utilize his wealth for his sister surgery then in…

Q: Consider an economy where private businesses/household did not have access to funds. Consider an…

A: The loanable funds market refers to a market place where the savers of the funds and buyers of the…