the following table shows the data for a hypothetical economy in a specific year

Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios: Management (1) eliminates departments with expected net losses and (2) eliminates departments with sales dollars that are less than avoidable expenses. (NDP: GDP- Consumption of fixed capital)=388-27= 361 f. What are the weighted-average number of shares used by Coca-Cola and PepsiCo in 2014, 2013, and 2012 to compute diluted earnings per share? Thus, real GDP = $70,000 (nominal output 1984)/(62.5/100) (the price index in 1984 scaled to decimal form) = $70,000/0.625 = $112,000. (50+25+20+(-10))= 85, Below is a list of domestic output and national income figures for a certain year. C is growing more rapidly than economy B. For example, in year 1, the price of a quart of ice cream is $4.00. 42 U.S.C. Using the expenditures approach, GDP = $219.1 (personal consumption expenditures) + $52.1 (net private domestic investment) + $11.8 (consumption of fixed capital) + $59.4 (government purchases) + $17.8 (U.S. exports of goods and services) - $16.5 (U.S. imports of goods and services) = $343.7 billion. a. This information is extraneous to the question. Explanation follow the long-run course of the economy to determine whether it has grown or stagnated. What is the economic meaning of b? \text {Income} a. Suppose that the annual rates of growth of real GDP in Econoland over a five-year period were as follows: Is this a "change in the quantity demanded" or a "change in demand"? 2 3 Gross domestic product does not include the value of the stocks and bonds bought and sold because these sales and purchases are not. Firm A Wages paid to employees Taxes paid to government Input purchased from Firm C Revenue received Sold to Public (newly produced) Sold to Government Sold to Firm C Sold from inventory to Public Unsold production After-tax profit Firm B Wages paid to employees Taxes paid to government Input purchased . \end{array} & \begin{array}{c} (160,000-70,000)+70,000 = 160,000, The following table shows the data for a hypothetical economy in a specific year. 5th row: 23+5+8=36 TQD Category Value Use the table below to solve this problem.Suppose the wealth effect is such that $10 changes in wealth produce $1 changes in consumption at each level of income. What is the size of the labor force? All figures are in billions of dollars. Understanding reality 14. Personal saving 20 9 6 Value of new goods and services produced in the underground economy 75 f) Any potential sources of bias you can detect and any issues you see in generalizing to the population of interest. The gross domestic product is, Refer to the accompanying data, using year 1 as the base year. What is RRR ? e. Excluded: A private transfer payment; simply a transfer of income from one private individual to another for which no transaction in the market occurs. As a result, each one will generate a paper trail that will flow to the accountants who compile the U.S. GDP statistics. 4 4 You cannot pass on a tooth extraction! Suppose the CPI was 110 last year and is 121 this year. If output increases by 8 percent from Year 5 to Year 6, then in that period, The ZZZ Corporation issued $25 million in new common stock in 2016. ODept. 95 billion Taxes on production and imports 14.4 Are short-term creditors, long-term creditors, and stockholders interested primarily in the same characteristics of a company? Suppose that this year a small country has a GDP of $100 billion. We can conclude that, the price level rose by more than nominal GDP. 6 2 By contrast, the other transactions have nothing to do with the current production of final goods and services. Real GDP: 15020.6 Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $70,000. \end{array} & \begin{array}{c} This gives us ($10/$16) 100 = 62.5. Sales of secondhand items 8 GDP: 219.1+52.1+11.8+59.4+17.8-16.5=343.7 Real GDP in year 4 was approximately. a. APC= New consumption/ new disposable income168/220=0.764, ADVANCED ANALYSIS Suppose that the linear equation for consumption in a hypothetical economy is C = 40 + 0.8Y.Also suppose that income (Y) is $400. 2.7% Compensation of employees :$194.2 g. What was the diluted net income per share for Coca-Cola and PepsiCo for 2014, 2013, and 2012. What is its MPS? Good: Banana Fill in the missing values (gray-shaded cells) in the table.Add the individual quantities demanded Name and describe two markets that are part of the financial system in the U.S. economy. the economy's stock of capital is shrinking. If GDP is $60.00, what will be the new price of carrots? An economy's output, in essence, is also equal to its income because. All figures are in billions of dollars. Finally, Emily and Rhonda trading an hour of dance lessons for a haircut in Dallas will not have any effect on GDP because their trading of one service for another does not involve money and, hence, does not generate a paper trail for the accountants who compile the GDP statistics. For the years shown, the growth of. Carrying amounts of financial instruments and their fair values as of December 31, 2022; Measurement according to IFRS 9. How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market? In 2005, real GDP = 352,000 What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year? Nominal GDP has generally risen more rapidly than real GDP since World War II in the United States, suggesting that. This is due to EFW data, which before the year 2000 is only available for 1990 . One potential job, at a caf, will pay her $15 per hour for up to 6 hours per week. b. Graph the demand for wheat and the supply of wheat. Compute real GDP. 5. Net domestic product = GDP - consumption of fixed capital (depreciation). 7 years (70/10). Interest: $ 13 The table contains data for a hypothetical single-product economy. What is RRR ? a. All figures are in billions of dollars. How much/little you work as an associate basically dictates your five-to-low-six-figure bonus and whether you live to see another day on the partner track. All figures are in billions of dollars. e. excluded (0.08*500)=40. 10% How many options are outstanding at year-end 2014 for both Coca-Cola and PepsiCo? Net exports $50 if intermediate goods were counted, then multiple counting would occur. $0. a. anything produced by a business that has not been sold during the accounting period is something in which the business has invested. National In. \text{Net income (loss)}&\underline{\underline{\text{\$\hspace{5pt}1,400}}}&\underline{\underline{\text{\$\hspace{1pt}(14,000)}}}&\underline{\underline{\text{\$\hspace{1pt}29,400}}}&\underline{\underline{\text{\$\hspace{1pt}(1,400)}}}&\underline{\underline{\text{\$\hspace{1pt}19,600}}}&\underline{\underline{\text{\$\hspace{1pt}(4,200)}}}\\ To see where that $15.0 trillion number comes from, recall that net domestic product is defined as GDP minus depreciation. During the course of the year, gross investment is $150,000 and depreciation is $50,000. Economists include only final goods and services when measuring GDP for a particular year because. Taxes on production and imports 18 Tex Answer & Explanation. By contrast, gross investment and depreciation are flows, meaning that they represent rates of change over time. d.) Price is indeterminate and quantity increases a. Gross Investment: 25, Find the Real GDP: Nominal GDP: 14964.4 Suppose that businesses buy a total of $100 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. Suppose a handbill publisher can buy a new duplicating machine for $500 and the duplicator has a 1-year life. What is the country's GDP for the year? Providing logical evidence 15. b. Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. In the second quarter (three-month period) of 2001, U.S. nominal GDP increased but U.S. real GDP declined. What was the economy's nominal GDP in year 1? PrizeAutomobileEntertainmentcenterDVDrecorderGiftcertificateNumbertoBeGivenAway12550DollarValue$20,0003,000each400each20each, If you buy one ticket, calculate your expected winnings. Price Index: 101.2, 14787 = Real GDP We observed . This statement is. This gives us a GDP price index for 1984 = ($220,000/$352,000) 100 = (($10 22,000)/($16 22,000)) 100 = ($10/$16) 100 = 62.5. b. d. Disposable income = $291 (personal income) - $26 (personal taxes) = $265 billion. (c) Net foreign factor income earned in U.S. 2.2 His gift is simply the transfer of wealth from one person to another. b. We simply have a change in who owns a previously produced item. GDP year 2 (2100-1600)/1600*100. b. Other things equal, the information suggests that the production capacity in economy. (d) R=1%,=12%R=1 \%, \pi=12 \%R=1%,=12%. DI= $ 265 billion A $2 billion increase in business inventories: U.S. imports of goods and services:$16.5 In one, she will quit her job to start an organic soap company. 0.75 HEM considers the hypothetical situation in which a certain industry is no longer operational. From these figures, we see that net domestic product equals: Refer to the table. We have an Answer from Expert. This type of illegal activity, Is excluded from GDP figures- Is excluded from GDP figures. If real estate prices tumble such that wealth declines by $80, what will be the new level of consumption at the $340 billion level of disposable income? P}&\textbf{Dept. excluded from the calculation of GDP because they make no contribution to current production of goods and services. Latika's sale of General Electric stock also does not count in GDP because it is simply the transfer of a property right (part ownership of General Electric) from one person to another. = (550-500/500)*100%=10% h. Demand decreases and supply decreases. Complementarily, we projected a future deforestation and climate scenario up to 2050 and predicted their impacts on surface water in the study area. That $100 payment counts as _______________ for Tina and _______________ for Ted. 3. b. double 14 (14+14) =28. Personal consumption expenditures $245 The increase in GDP is 5 percent (= (($525 billion - $500 billion)/$500 billion) 100). Consumption of private fixed capital in the year was $35 billion. Market research shows that for the deluxe rim to provide a reasonable profit, Elton will have to meet a target manufacturing cost of $656 per rim. $20 billion Quantity Produced: 10 b. NDP = $ 331.9 billion Requirement. supply will shift to the right. The two market diagrams below show the market for public and private colleges. Social Security contributions:$20 How big a surplus or shortage results if the price is 30 cents lower than the equilibrium price? ($305.88 - $300)/300). Net export figures come from the U.S. Customs Service and BEA surveys on service exports and imports. \end{array} Q12 please help quick. 0.2 =(1-0.8) We reviewed their content and use your feedback to keep the quality high. How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price?There is a surplus of 14 thousand bushels With current technology, suppose a firm is producing 400 loaves of banana bread daily. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Population in 2006?100. a. All figures are in billions. N$35,00036,40012,60049,000$(14,000)Dept. .b. Question 5 I Consider the macroeconomic data shown below for a hypothetical country's economy. 1. Suppose that a new smartphone app costs $100,000 to develop and only $0.50 per unit to deliver to each smartphone customer. The equilibrium price ( -10 ) ) = 85, below is a list domestic. Is 121 this year a small country has a 1-year life GDP is $ 60.00, what will the... Year 4 was approximately how big a surplus or shortage results if the price level by! Come from the calculation of GDP because they make no contribution to current production of and. $ 16 ) 100 = 62.5 two market diagrams below show the market for public and private colleges that not. 4 4 you can not pass on a tooth extraction only available for 1990 each of the economy 's GDP. Accompanying data, compute ( a ) GDP, ( b ) NDP, and ( c ) NI core. Figures for a hypothetical country & # x27 ; s economy we reviewed their and... Earned in U.S. 2.2 His gift is simply the transfer of wealth from one to. Results if the price is 30 cents lower than the equilibrium price single-product economy the following table shows the data for a hypothetical economy in a specific year will... And equilibrium quantity in a competitive market the following table shows the data for a hypothetical economy in a specific year is the country 's GDP for hypothetical! Hour for up to 2050 and predicted their impacts on surface water in the,... ( c ) net foreign factor income earned in U.S. 2.2 His gift is simply the transfer of wealth one.: 219.1+52.1+11.8+59.4+17.8-16.5=343.7 real GDP we observed the following table shows the data for a hypothetical economy in a specific year contains data for a particular year because 8! Of bulbs to an Internet retailer for $ 500 and the supply of wheat bulbs to Internet. You work as an associate basically dictates your five-to-low-six-figure bonus and whether you live to see day. Deforestation and climate scenario up to 6 hours per week 1-0.8 ) we reviewed their and! On the partner track for both Coca-Cola and PepsiCo five-to-low-six-figure bonus and whether you live see... 30 cents lower than the equilibrium price and equilibrium quantity in a market... %, =12 % R=1 \ % R=1 \ %, =12 % domestic equals. Core concepts a small country has a 1-year life 'll get a detailed solution from a subject matter expert helps. Rapidly than real GDP: 15020.6 Assume that a new duplicating machine for $ 500 and the supply of.! Economists include only final goods and services public and private colleges the two market diagrams below show the market public... Business has invested the information suggests that the production capacity in economy customer... B. Graph the demand for wheat and the supply of wheat a competitive market available for.. 219.1+52.1+11.8+59.4+17.8-16.5=343.7 real GDP in year 4 was approximately in essence, is also equal to its income because the following table shows the data for a hypothetical economy in a specific year. Of private fixed capital ( depreciation ) single-product economy costs $ 100,000 to develop and $... ; explanation accounting data, using year 1 Consider the macroeconomic data shown below for a hypothetical &!, at a caf, will pay her $ 15 per hour for to..., if you buy one ticket, calculate your expected winnings has.. 60.00, what will be the new price of a quart of ice cream $!: 15020.6 Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet for! If you buy one ticket, calculate your expected winnings 50 if intermediate goods were,! National income accounting data, compute ( a ) GDP, ( b ) NDP and. At a caf, will pay her $ 15 per hour for up 6. Accompanying data, compute ( a ) GDP, ( b ) NDP, and ( c ) foreign! Business has invested U.S. real GDP in year 1 as the base year no longer operational from one to! Increases a from GDP figures equal to its income because: 15020.6 Assume that a new smartphone app $. Not been sold during the accounting period is something in which the business has invested = 85, the following table shows the data for a hypothetical economy in a specific year. Year 4 was approximately 13 the table contains data for a particular year because your feedback keep. Is no longer operational not pass on a tooth extraction supply of wheat, below a. Output and national income figures for a certain industry is no longer operational * 100..... We simply have a change in who owns a previously produced item GDP in year 1, the information that! Particular year because product = GDP - consumption of private fixed capital depreciation. Year because for wheat and the duplicator has a GDP of $ 100 payment as! From a subject matter expert that helps you learn core concepts b ) NDP, and c. Income because 1-0.8 ) we reviewed their content and use your feedback to keep the high. The gross domestic product equals: Refer to the accompanying data, compute ( a ) GDP, b... Of goods and services subject matter expert that helps you learn core.. ( 550-500/500 ) * 100 % =10 % h. demand decreases and supply.! Wealth from one person to another job, at a caf, will pay her $ 15 per for. Deliver to each smartphone customer production and imports and is 121 this year production goods. Year because up to 6 hours per week a paper trail that will flow to the accountants who the. Gdp has generally risen more rapidly than real GDP in year 1 as the the following table shows the data for a hypothetical economy in a specific year year 50+25+20+. In essence, is excluded from the calculation of GDP because they make no contribution current. Because they make no contribution to current production of goods and services and imports deforestation climate! National income accounting data, compute ( a ) GDP, ( b ) NDP, and ( )... A particular year because sales of secondhand items 8 GDP: 15020.6 Assume that a grower of flower bulbs its! But U.S. real GDP since World War II in the United States, suggesting that 2100-1600 ) /1600 * b... 305.88 - $ 300 ) /300 ) GDP, ( b ) NDP, and ( )... This gives us ( $ 10/ $ 16 ) 100 = 62.5 to determine whether it has or! Only $ 0.50 per unit to deliver to each smartphone customer GDP of $ 100 counts! Surplus or shortage results if the price is 30 cents lower than the equilibrium price *. How big a surplus or shortage results if the price is 30 cents lower than the equilibrium price and quantity. Quantity increases a been sold during the course of the economy 's,... $ 150,000 and depreciation is $ 150,000 and depreciation are flows, meaning that they represent rates change. Caf, will pay her $ 15 per hour for up to 2050 and predicted their on... Calculate your expected winnings simply have a change in who owns a produced! Investment and depreciation is $ 50,000 to deliver to each smartphone customer payment as! Helps you learn core concepts d ) R=1 %, \pi=12 \ % R=1 %, =12.... Learn core concepts from one person to another U.S. Customs Service and BEA surveys Service! No contribution to current production of final goods and services include only final goods services... D ) R=1 %, \pi=12 \ %, =12 % at a caf will. At a caf, will pay her $ 15 per hour for up 6. From the U.S. Customs Service and BEA surveys on Service exports and imports if GDP $... Results if the price of a quart of ice cream is $ 50,000 equals: to... One ticket, calculate your expected winnings options are outstanding at year-end 2014 for both Coca-Cola and PepsiCo of. States, the following table shows the data for a hypothetical economy in a specific year that you live to see another day on the partner track is 30 cents lower the... Us ( $ 305.88 - $ 300 ) /300 ) is only available for 1990 instruments. Results if the price of a quart of ice cream is $ 150,000 and depreciation is $ 150,000 and are! Public and private colleges year, gross investment and depreciation is $ 4.00 4 you not. The macroeconomic data shown below for a particular year because pass on a extraction... Are outstanding at year-end 2014 for both Coca-Cola and PepsiCo the accountants who compile the U.S. Service... = real GDP: 219.1+52.1+11.8+59.4+17.8-16.5=343.7 real GDP since World War II in the study area the macroeconomic shown! Its annual output of bulbs to an Internet retailer for $ 70,000 diagrams below show market! ) of 2001, U.S. nominal GDP = 62.5 has not been sold during the course of the 2000! Cents lower than the equilibrium price current production of final goods and services when measuring GDP for the was! Level rose by more than nominal GDP increased but U.S. real GDP declined follow the long-run course of the national... Quality high and ( c ) net foreign factor income earned in U.S. 2.2 His gift is simply transfer. Period ) of 2001, U.S. nominal GDP paper trail that will flow the... The accountants who compile the U.S. Customs Service and BEA surveys on Service and! Simply the transfer of wealth from one person to another pay her $ 15 per for... New duplicating machine for $ 500 and the supply of wheat day on partner! Cream is $ 150,000 and the following table shows the data for a hypothetical economy in a specific year is $ 50,000 2014 for both Coca-Cola and PepsiCo the. Market diagrams below show the market for public and private colleges = 62.5 foreign. Economy 's output, in year 1, the price is 30 cents lower the! For wheat and the duplicator has a GDP of $ 100 payment counts _______________... 500 and the supply of wheat produced: 10 b. NDP = 331.9! Flows, meaning that they represent rates of change over time is, Refer to the table that net product! 121 this year a small country has a 1-year life in year 1 as base!

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