Study Guide for Mankiw's Brief Principles of Macroeconomics, 7th
7th Edition
ISBN: 9781285864266
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 11PA
Sub part (a):
To determine
Sub part (b):
To determine
NNP.
Sub part (c):
To determine
Sub part(d):
To determine
Personal Income.
Sub part (e):
To determine
Personal Disposable Income.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A firm produces and sells a good for $95. To produce this good they purchased materials for $11,
they paid wages of $31, and they paid rent of $15. What is the firm's value added?
Enter a whole number with no dollar sign.
Q#1. Last year, M.Hamed left a job that pays 36,000 OMR to run his own bike-repair shop. M. Hamed’s shop charges 5 OMR for a repair, and last year the shop performed 7,000 repairs. M. Hamed’s production costs for the year included rent, wages, and equipment. M. Hamed spent 6,000 OMR on rent and 18,000 OMR on wages for his employees. M. Hamed keeps whatever profit the shop earns but does not pay himself an official wage. M. Hamed borrowed 20,000 OMR for the shop’s equipment at an annual interest rate of 6 percent.
a. What is M. Hamed’s accounting profit?
b. What is M. Hamed’s economic profit?
c. Is the decision to leave the job and run the bike business, good? Why?
Calculate the value of APC when Consumption is given to be $230 and the income is $500
Chapter 5 Solutions
Study Guide for Mankiw's Brief Principles of Macroeconomics, 7th
Ch. 5.1 - Prob. 1QQCh. 5.2 - Prob. 2QQCh. 5.3 - Prob. 3QQCh. 5.4 - Prob. 4QQCh. 5.5 - Prob. 5QQCh. 5 - Prob. 1QCMCCh. 5 - Prob. 2QCMCCh. 5 - Prob. 3QCMCCh. 5 - Prob. 4QCMCCh. 5 - Prob. 5QCMC
Ch. 5 - Prob. 6QCMCCh. 5 - Prob. 1QRCh. 5 - Prob. 2QRCh. 5 - Prob. 3QRCh. 5 - Prob. 4QRCh. 5 - Prob. 5QRCh. 5 - Prob. 6QRCh. 5 - Prob. 7QRCh. 5 - Prob. 8QRCh. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 5PACh. 5 - Prob. 6PACh. 5 - Prob. 8PACh. 5 - Prob. 9PACh. 5 - Prob. 10PACh. 5 - Prob. 11PA
Knowledge Booster
Similar questions
- Calculate the value of income, If consumption is $4000 and APC is 0.13arrow_forwardCarole works 35 hours a week at a wage rate of $20. Thus, her total weekly income is $700 On this income, she pays total taxes of $49.00 However, she calculates that on the last hour that she works, she pays $4.00 Carole's average tax rate is% (Round your response to two decimal places) Carole's marginal tax rate is% (Round your response to two decimal places) Darrow_forwardWhich of the following statements is most accurate about goods and services? They are purchased by households in the factor market. They flow in a clockwise direction. They are sold by businesses in the factor market. They flow in a counterclockwise direction.arrow_forward
- Suppose a grocery store's sales are 200,000 TL in one year. During this same time period, the firm paid 50,000 TL for grocery stock sold, 70,000 TL for wages and salaries, 20,000 TL on taxes and insurance, and 10,000 TL on other expenses. At the beginning of this period, the grocery store owner had received the following two offers:He could rent the store to another grocer and work for a large chain in which case he wouldmake a return of 35 ,OOO TL during that year (including his salary).Offer II: He could have sold the store and invested in a stock which together would have yielded a returnof 35,000 TL during that year, and gotten a job paying 15,000 TL. He declined both offers. a.What is the difference between explicit and implicit costs to a firm? What is the implicit cost of the businessin question?b.Calculate his economic profits for the year.c.Was his decision to keep the grocery store economically rational? Explain why or why not. By referring tothe relevant concepts.arrow_forwardwhats the difference between marginal physical product (MPP) and the marginal rate of subsitution (MRS)?arrow_forwardWhat is the difference between the rental price and the purchase price of capital?arrow_forward
- Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all that apply. O The $225 Raphael spends to purchase tax services from A-Plus Accountants Susan's labor The $250 per week Raphael earns working for Dinah's Diner The breakfast Susan receivesarrow_forwardSam owns and operates ye olde yogurt shoppe. His revenue this year was $135,000. he paid food supplier $50,000 for fruit, yogurt and milk and paid $5000 For paper and cleaning supplies. In addition to working again the store himself, he hired student lady to work part time and it cost him $25,000 in labor costs. He paid $12,500 to rent his store. He borrowed money from bank and had to pay them $5000 in interest costs. To run his company, sam gave up $50000 per year job and $1500 in interest amount he put into the business. He estimates that companies similar to his earn at least $6750 over costs. 1. separate(list) sam's accounting costs into fixed costs be variable costs by name and amount. 2. list each of sam's implicit costs by name and amount 3. calculate sam's economic profit/loss. Show what costs are included, and if Sam expects the Sam revenue and costs next year, he should continue in this business? Why/ why not?arrow_forwardGerry works 40 hours a week managing Gerry's Market, without drawing a salary. He could earn $600 a week doing the same work for Jean. Gerry's Market owes its bank $100,000, and Gerry has invested $100,000 of his own money. If Gerry's accounting profits are $1,000 per week while the interest on his bank debt is $200 per week, his economic profits are: $400 per week. $800 per week. $200 per week. $1200 per week. $0 per week.arrow_forward
- explain it correctlyarrow_forwardIn our paper airplane company, some inputs were fixed and some were variable. Match the input to whether it was VARIABLE or FIXED. Paper- Stapler- Staples- Employees- Production space-arrow_forwardTom earns $15 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Tom faces a 20 percent tax rate and pays $4 per hour in child care expenses for each hour he works. Tom receives $80 in child support payments each week. There are 168 hours in the week. Graph Tom’s weekly budget line.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning