Reference no: EM131403016
Consider an economy with a corn producer, some consumers, and a government. In a given year, the corn producer grows 30 million bushels of corn and the market price for corn is $5 per bushel. Of the 30 million bushels produced, 20 million are sold to consumers, 5 million are stored in inventory, and 5 million are sold to the government to feed the army. The corn producer pays $60 million in wages to consumers and $20 million in taxes to the government. Consumers pay $10 million in taxes to the government, receive $10 million in interest on the government debt, and receive $5 million in Social Security payments from the government. The profits of the corn producer are distributed to consumers.
(a) Calculate GDP using
(i) the product approach,
(ii) the expenditure approach, and
(iii) the income approach.
(b) Calculate private disposable income, private sector saving, government saving, national saving, and the government deficit. Is the government budget in deficit or surplus?
|
Number of products sold by the company
: Even though this will be only one of a number of products sold by the company, it is necessary to analyse the risk involved in making the decision to go ahead with the new product. What risks will be faced and how might these risks be controlled? ..
|
|
Calculate and interpret the value of r2 for each object
: The table also includes the t-value for testing the null hypothesis of no correlation (i.e., for testing H0 : β1 = 0). Interpret these results.
|
|
How price controls present a problem for measuring gdp
: Carefully explain how price controls present a problem for measuring GDP and for measuring the price level and inflation.
|
|
Identify account that would typically found on balance sheet
: Identify one account that would typically be found on a balance sheet, and one account that would typically be found on an income statement, and define them.
|
|
Calculate gdp using the product approach
: Calculate private disposable income, private sector saving, government saving, national saving, and the government deficit. Is the government budget in deficit or surplus?
|
|
Provide summary of the type of information video contained
: Watch at least three videos you find, list the videos you viewed, and provide a summary of the type of information the video contained and how it relates to this unit.
|
|
Give practical interpretation of correlation coefficient
: For the 13 obese young adults, the researchers reported a correlation of r = .50 between baseline and follow-up physical activity, with an associated p-value of .07. Give a practical interpretation of this correlation coefficient and p-value.
|
|
Low-cost versions of successful designs
: Legal issues aside, evaluate Forever 21's strategy of making low-cost versions of successful designs by famous designers. From a merchandising perspective, what are the pros and cons of Forever 21's fast-growth strategy?
|
|
Use the method of least squares to estimate the line
: Use the method of least squares to estimate the line, E(y) = β0 + β1x. Interpret the β estimates in the words of the problem.
|