Essentials of Economics - Standalone book
10th Edition
ISBN: 9781259235702
Author: Bradley R Schiller, Karen Gebhardt
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 4P
To determine
(a)
To analyze: whether the quantity of manufactured output decreased or increased.
To determine
(b)
To calculate the decrease percentage of manufactured output.
To determine
(c)
To analyze whether the manufacturing share of GDP rise or fall over 100 years.
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4. Below is a list of domestic output and national income figures for
a certain year. All figures are in billions. The questions that follow
ask you to determine the major national income measures by both
the expenditures and income approaches. The results you obtain
with the different methods should be the same. LO7.4
Personal consumption expenditures
$245
7.
Net foreign factor income
4
Transfer payments
12
Rents
14
Consumption of fixed capital (depreciation)
27
Statistical discrepancy
8.
Social Security contributions
20
Interest
13
Proprietors' income
33
Net exports
11
Dividends
16
Compensation of employees
223
Taxes on production and imports
18
Undistributed corporate profits
21
Personal taxes
26
19
Corporate income taxes
56
Corporate profits
72
Government purchases
33
Net private domestic investment
20
Personal saving
a. Using the above data, determine GDP by both the expenditures
approach and the income approach. Then determine NDP.
b. Now determine NI in two ways: first, by…
D Question 14
Suppose for the country of Joshua-land, the annual inflation rate is 7%, the population growth is 5% per year while GDP increases by 2%
per year. How long would it take for the country to double its GDP?
O 7 years
O 14 years
35 years
O Never
Question 15
For the previous question, how long would it take Joshua-land to double its GDP
capita?
per
O 7 years
O 14 years
O 35 years
Never
Question 16
For Joshua land, how long would it take for prices to double?
O 7 years
O 10 years
35 years
O Not enough information
Using the table, what is the real GDP growth from 2001 to 2002?
O 50%
YEAR
O 1.25%
2001
2002
O-11.11%
QUANTITY
APPLES
100
150
BANANAS APPLES
40
$0.50
60
$1.00
PRICES
BANANAS
$2.50
$1.00
Chapter 2 Solutions
Essentials of Economics - Standalone book
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Similar questions
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- Which of these statements is not true when we discuss GDP calculation? O a. GDP includes earnings of both the citizens and non-citizens but are residing inside the country. O b. Incomes made by a citizen outside of his country will be included in the calculation of GDP c Expenditures of citizens and non-citizens made inside the country is included in GDP calculation d. Incomes made by expatriates are included in the calculation of GDParrow_forwardData for 2019 Item Price Quantity Market Value Tables $100 10 $1,000 Chairs $25 100 $2,500 Nominal GDP $3,500 Data for 2020 Item Price Quantity Market Value Tables $110 15 $1,650 $3,600 $5,250 Chairs $30 |120 Nominal GDP Using the data above, what is real GDP for 2020 assuming 2019 is the reference base year? $5,100 $5,250 O $4,500 O $3,500 Cannot determine from the information abovearrow_forwardIn the year 2014, the world's average per capita GDP was $14,517. What percent of the world's population lived in a country with per capita GDP that was below $14,517? O 21% 43% 56% OOOO 73% Show Transcribed Text Roughly what percent of the world's population live in countries with per capita GDP lower than the average world per capita GDP? 75% 50% © 25% C 10%arrow_forward
- Consider the data shown in the table. Assume that the economy produces only textbooks. What is the growth rate of real GDP between the two years using last year as the base year? |Textbooks Actual Price Sold Last year This year 5,000 $50 5,250 $55 10% 5% O 2.5% 15%arrow_forward3. The world was growing at a constant growth of 0.00007% rate between 100,000 BC and 1750AD. If birth rates per thousand averaged 35 during this period , what was the average death rate in equilibrium. (approximately) O 31 35 40 8. Which of the following statements is correct? A model is an exact representation of what goes on in the economy. Equilibrium in GDP growth rate is when the growth rate is zero. A model is an economic relationship that is only represented by mathematics. Equilibrium is a self-perpetuating situation that does not change, unless a force for change is introduced from the outside and alters the basic data describing the situation. 9. According to Malthus, which of the following are the not the causes of diminishing average product of labor? Environmental effects of over-cultivation (e.g. increased carbon emissions) Increase in population growth rate More labour is devoted to a fixed quantity of land. The new land brought into cultivation is of inferior quality…arrow_forwardFill in the missing portion of the following table and answer the following questions: (Billions) (Negative figures are surpluses) Year 2007 2008 2009 2010 2011 Potential Nominal GDP O248 billion O262 billion O 413 billion O 348 billion 14,449 14,981 15,310 15,647 16.134 Actual Nominal GDP 14,478 14,719 14,419 14,964 15,518 Shortfall in Output -29 262 892 682 616 Tax Rate 25% 25% 25% 25% 25% What was the structural budget deficit in 2008? Actual Budget Deficit (Minus Automatic Stabilizors) 183 413 1,063 877 891 Cyclical Budget Deficit S 66 154 Structural Budget Deficit 190 707 Actual Budgot Deficit % of GDP 1.26% 5.86% 5.74%arrow_forward
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