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1. Problems and Applications Q1
Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply.
A. Consumption
B. Investment
C. Government Purchases
D. Net Exports
You pay a domestic plumber for fixing a leak in your bathroom.
New York hires workers to plow snow after a snowstorm.
Uncle John orders 10 new computers for his finance business.
Uncle Paul pays a domestic contractor for renovating his home.
You buy a new Toshiba computer.
Ford manufactures a Focus and adds it to its inventory.
Uncle John receives a check from the federal government for unemployment insurance benefit.
Dell sells a desktop computer from its inventory to the Johnson family.
If policey makers tihink that the natural rate of unemployment is lower than it really is, then their policeies designed to move the economy to the estimated natural rate, if continued over the long run, will:
This unit describes key characteristics governing how firms operate in the short run and the long run. Perhaps the most important concepts in the unit are the shapes and the logic of the short-run and long-run cost curves. Can you explain why average..
Find the present value and explain whether or not you would invest in the project, if you are asked to pay $5, 500 to be able to participate.
Stocks and bonds-and checking accounts are all stores of value, but only checking accounts commonly function as mediums of exchange. and checking accounts are all stores of value and commonly function as mediums of exchange.
Pick the last 2 business cycles as identified by the National Bureau of Economic Research. Describe the behavior of the components of aggregate demand during each of these cycles.
Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $110 million to $220 million between one year and the next. Instructions: Enter your answers as whole numbers. a. Assuming that the price of gold in..
What are the advantages and disadvantages of tape storage? If you think that tapes are a viable option, in what scenario(s) would you use them?
Two methods of filling cereal boxes are being compared. Both methods fill the box with the same amount of cereal on average so the company wants to select the method with the lower variance. In a sample of 31 boxes filled using method 1, the standard..
The farmers in country A harvest and sell 150 bushels of wheat at the price of $80 per bushel. Of the total production 30 bushels are exported. If the government bans all exports of wheat, the domestic price of wheat would drop to $60. But the produc..
Review this week's reading A Technique for Architecture and Design and select one of the points the author discusses
Suppose a consumer's utility function is given by U(X,Y) = X*Y. Also, the consumer has $288 to spend, and the price of X, PX=16, and the price of Y, PY = 1. How much X and Y should the consumer purchase in order to maximize her utility? How much tota..
Recall that the HDI focuses on "ends of development" like longevity, knowledge and material choice income), rather than on the "means" what has been the case of GNP. What are some of the main criticisms of against the use of GDP per capita as a measu..
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