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Explain which of the following transactions would be directly counted in 2015’s GDP. In each case, explain whether the action causes an increase in Consumption, Investment, Govt. Purchases or Net Export. If the transaction is not included in 2015’s GDP, explain why not.
(a) You purchase $5000 worth of Google’s stock.
(b) A record company produces 500, 000 CDs of a new artist. Only 100,000 are sold at the price of $15.00.
(c) You purchase a 2011 Lexus for 25,000 and then purchase a set of special tires for $1600.
(d) You fix your friend’s car saving him $300.00 and in return, he paints your house saving you $400.00.
Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
You deposit $10000 into an account paying 8% interest compounded quarterly. You want to make withdrawals of $1300 each year for the next 15 years. If you were to make two equal deposits, one in year 5, the other in year 10, how much would they need t..
A firm currently uses 100 workers to produce 200 units of output per day. The daily wage (per worker) is $80, and the price of the firm's output is $50. The cost of other variable inputs is $600 per day. The firm’s fixed cost is 8,000. The marginal c..
Sally has set aside about $7500 for a down payment, and she has budgeted for a monthly payment of $900. She expects that her salary will increase about 5% per year in real terms,but she would like to use that increase for “fun” purposes. Sally is als..
suppose demand and supply are given byqxd 7- 12px andqxs 14px-12bull determine the equilibrium price and quantitybull
If the average adult produces $90,000 of output per year, how much output is lost as a result of adult deaths from secondhand smoke, according to the News on page 74?
q1. if a monopolist has an own-price demand elasticity of -.8 is it maximizing profits? explainq2. what are some
If a country's growth is biased in favor of its import, this should unequivocally improve its terms of trade also its economic welfare. Use a graph to explain why
Illustrate what are the factors which involve the provide also demand of which good or service. How do you expect the demand also provide of which good or service to change in the next yr.
How effective would these actions be if banks remained re- luctant to make consumer loans while households remained reluctant to obtain loans? Briefly explain.
Suppose you wanted to study intertemporal food purchases. You have annual data on food purchases. Would it be valid to assume that food in one year and food in another year are perfect substitutes? Why or why not? A consumer, who is initially a lende..
q.assume which at current factor cost s cloth is produced using 40 hours of labor for each acre of land and food is
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