Reference no: EM131235350
Assume that Country A has a population of 500,000 and only produces 1 good: cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale. Discuss the following:
What is Country A's GDP?
What is the composition of GDP by percentage?
What is the GDP per capita?
How does this relate to Keynesian economics?
Part II
Go to the Bureau of Economic Analysis at this Web site (https://bea.gov/), and look up the latest new release for real GDP. Address the following questions after reading the latest release:
Where is the United States in the business cycle?
What is the real GDP today?
What is the largest component of GDP?
What is the smallest component of GDP?
What is the fastest growing component of GDP, and why?
What components of GDP were involved in the change from last month to this month?
What is the price index today?
What caused the change?
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How do barriers to entry create market power
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Advantages of lateral communication
: What disadvantages of downward communication the organization must have faced and what advantages of lateral communication may be offered due to the change?
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What is the appropriate cost of capital for a project
: In a perfect world and in the absence of externalities, should you take only the projects with the highest NPV? - Which are economy-wide inputs, and which are project specific inputs?
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What is the annual carrying cost
: A florist carries an average inventory of $10,000 in cut flowers. The flowers require special storage and are highly perishable. The florist estimates capital costs at 10%, storage costs at 25%, and risk costs at 50%. What is the annual carrying c..
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What is the fastest growing component of gdp and why
: What is the smallest component of GDP? What is the fastest growing component of GDP, and why? What components of GDP were involved in the change from last month to this month?
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How do the social institutions of our country play a role
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What are the annual ordering and carrying costs
: The average inventory is $250,000, and 5000 orders are placed in a year. What are the annual ordering and carrying costs?
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What is the appropriate cost of capital for a project
: The risk-free rate is 6%. The expected rate of return on the stock market is 10%. - What is the appropriate cost of capital for a project that has a beta of -2?- Does this make economic sense?
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What is the annual cost of carrying anticipation inventory
: If inventory carrying costs are $3 per unit per quarter, what is the annual cost of carrying this anticipation inventory? Opening and ending inventories are zero.
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