ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 5P
To determine
The reasons and the most important factors for the difference in household incomes.
Concept Introduction:
Household income: It refers to the combined income from all people living together in a specific household. The income includes not only the salaries but also the income from any business or investments. The members of the household are not required to be related to one another to be the part of the household.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
explain how gross product is calculates using the income approach
APPORTIONMENT (COMPUTATION)
1. What leisure activities do you participate in? In the table below, there
are five activities and the approximate number of participants (in
millions) in each.
Exercise
Sports
Charity Work
Home Repair
Computer Hobbies
150
90
85
130
80
Suppose you wish to allocate $100 million to promote leisure activities
based on the number of participants.
a. Find the modified quota for each activity using the divisor 5.25
b. Find how much money should be apportioned to each activity using
Jefferson's Method.
The income of Americans is on the rise. What happens to the sales of new luxury cars? Graph it
Chapter 18 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
Knowledge Booster
Similar questions
- What is the measure of the income earned by owners of resources used in making final goods and services? a. personal income b. gross domestic income c. retained earnings d. national incomearrow_forwardEconomics Allocation of Possible Income You are given different amounts of money on which to live (roughly approximating different Malaysian income groups). You are required to allocate funds to the categories of housing, food, clothing, education, health, transportation, recreation, etc. – other categories may be added by you. Different income groups are asked to critique the allocation of different groups - is it reasonable, why do you say so and how could it be allocated better. T20 income RM15,000 M40 income RM8,000 B40 income RM3000arrow_forwardQuestion 2a) What is the Consumer Price Index (CPI)?b) Consider an economy that produces and consumes shoes and houses. In thetable below are data for two different users.Year2000Year2001 Price of a house $120,000 $145,000Price of a pair of shoes $150 $170Number of houses produced 1,000 1,050Number of pairs of shoes 650,000 525,000(i) Calculate the CPI for both years.(ii) Calculate the rate of inflation for 2001 using the CPI.(iii) Calculate the GDP deflator for both years.(iv) Calculate the rate of inflation for 2001 using the GDP deflator.arrow_forward
- The household has an income of $10000 and it's consumption is also $10,000 Calculate APCarrow_forwardIncome aproach Table 2 Items RM (Millions) Wages and salary 1,050 Rent 850 Interest 880 Distributed Profit 1,300 Proprietor’s income 750 Depreciation 200 Undistributed profit 200 Transfer payment 75 Social security contribution 90 Personal Income Tax 110 Net factor income earned from abroad 89 Based on the above data, calculate: Gross Domestic Income Gross National Income National Incomearrow_forwardFirm A has a domestic Salary of $12000 million, exports is $3500 million and purchase are $5000 million Calculate the value added by firm Aarrow_forward
- What is personal income? What are the sources of personal incomearrow_forward23. Calculate the GDP using Income Approach. a) 492 b) 542 c) 602 d) 652 Interest Income $150 Depreciation $36 Wages $67 Gross Private Investment (1) $124 Business Profits (Both Proprietor's and Corporate's) $200 Statistical Discrepancy $74 Rental Income $75 Exports (X) $68 Government Purchases (G) $156 Household Consumption (C) $304 Iarrow_forward2arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning