consider a simple economy that produces only cell phones

(Round to the nearest 2 decimal places if necessary. B. more labor and less capita, Suppose a firm's production function is given by the equation Q = 12L^.5K^.5 . The money supply is $3 trillion, the price level equals 2, the real GDP is $6 trillion in base-year dollars. Understand how to use the inflation rate formula through examples. Suppose an economy producers three goods: Apples, oranges, and bananas. For example, in 2014, the money supply was $240, the price of a pen was $7.20, and the economy produced 500 pens. 2) If year 1 is the base year, the valu. Calculate the velocity of money. In the best case scenario, the Fed will: a Increase money supply to take the economy to point X. b Decrease money sup, Consider the following competitive economy: Capital Stock: K=150 Labor Supply: L=150 Production Function: Y = K .4 L .6 Consumption Function: C = 10 + 0.7 Y d Investment Function: I = 40 - 100r Government spending: G=30 Taxes: T=30 For this produ, The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. For example, in 2011, the money supply was $320, the price of a cell phone was $8.00, and the economy produced 600 cell phones. Fill in the missing values. If the equilibrium quantity of airplanes demanded is 400, can this economy take full advantage, The table below shows how the average cost of production for airplanes at a certain factory changes as the number of airplanes built at that factory increases. which of the following are likely to increase the measured level of GDP and which are likely to reduce it? (Assume that the change in fair value results from a change in market interest rates rather than a change in instrument-specific credit risk.). (b) Graph the short-run marginal and average product curves. Given this information, we know that a. saving per worker is less than depreciation per worker in period t. b. saving per worker, The table below contains information on Carrie's total utility TU and marginal utility MU from purchasing of pizza. [Solved] Part- 3 Chapter- 15Aplia Homework: The Debate over (Solved) - Consider a simple economy that produces only loaves of bread The economy experienced economic growth over time. Take the following information as given for a small, imaginary economy: -When income is $10,000, consumption spending is $6,500. The marginal product of labor is \frac{10}{E^{0.50. Provide the name and shape. Assume that K is fixed at 10 in the short run. Consider the following Economy: Only Coconuts are produced, using labor Year 1 Coconut Producer Total Revenue $20 Wages $5 Taxes $1.5 Interest on Loan $0.5 (a) What is the Coconut Producer. Which range of aggregate supply would represent an economy in the short term when prices are sticky and the economy is producing low levels of output? There are three productive factors. a. The following table contains information on the economy's money supply, velocity of money, price level, and output. "If a recession is so severe that the price level declines, then we know that both real GDP and nominal GDP must decline." They have a total of 850 crates of oranges. Discuss with 2 diagrams: (The aid of aggregate output market diagram and money mar, Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburger, shirts, and cotton. b) Solve for the short-run cost function (, When the costs of a good are paid for by nonconsumers, _______ of the good is produced. 4. Velocity and the quantity equation Consider a simple economy Show this change on the PPC above (make sure to label the change clearly). What are the equilibrium levels of: a. GDP? b, Indicate on a graph of the circular flows in the market economy, the real and money flows in which the following items belong: a. He is paid in cash twice per month. Paul s Pizza Parlor bakes pizza pies according to the following production function: Q = 3L + 0.3L^2 - 5L^3. Solved Consider a simple economy that produces only cell - Chegg Consider a simple economy that produces only cell phones. Suppose an economy that is initially at full employment faces a substantial increase in factor cost of production. Below is a Production Possibilities Table of Consumer Goods (things that consumers buy to satisfy wants) and Capital Goods (things that businesses buy to make them more productive). Numerically. Product Quantity Price Quantity Price These sweaters are made using a combination of labor and knitting machines. For example, in 2011, t, a. Show more Business Economics Answer & Explanation Solved by verified expert explain why real domestic output and the price level are directly related. a. not change GDP or the category under which the spending is counted. D. Net working capital is defined as current assets minus the sum of payables and accruals, and any decrease in the current ratio automatically indicates that net working capital has decreased. C. each additional unit is cheaper to produc, When economies of scope are strong, a. large-scale, single-product firms will be able to reach a minimum efficient scale (MES) more quickly. a. a) what is the per-worker production function? "Corporate profits are much too high: Most corporations make profits equal to 50 percent of the price of the products they sell.". The Nominal GDP for the year 2015 is $7450. The following table contains information on the economy's money supply, velocity of money, price level, and output. Disposable personal income will Video Games 900 $30.00 PI = NI - Corp earnings + Gov Transfer Payments b. Apple Inc. pays the designe, Suppose the following information describes a simple economy. a. output and prices. The Inflation rate from 2017 to 2018 was Finally, suppose consumer goods are subject to legal price con, An economy is described by the following equations : C=40+0.8(Y-T) I^p=70 G=120 NX=10 T=150 a) Find the short-run equilibrium GDP for this Economy b) Suppose the potential output for this Economy is $, Consider the information below for a simple economy. If Americans still worked 60-hour weeks, as they did in 1890. The inflation rate from 2017 to 2018 was. Do not include "all others" for parts fff and ggg. Gross National Product (GNP) differs from U.S. GDP is not adjusted for crime or other social problems. With the steel she produced 10 authentic sculptures that she sold for $1,000 each to a local art dealer. Question: Velocity and the quantity equation Consider a simple economy that produces only cell phones. Consider an economy that begins with an output equal to its natural level. how the actual output will deviate from potential output. The value of the aluminum is not directly counted in GDP, but the production of aluminum is included in the value-added method of measuring GDP, Indicate whether each of the following transactions represents the purchase of a final good. If th, Suppose that this year's velocity is 10, nominal GDP (PY) is $50 billion, and real GDP (Y) IS $10 billion. Currency: $1,000 Checking Account Balances: $2,000 Savings Account Balances: $5,000 Small-Denomination T. Define Economy and list all inputs and outputs need 100 words at least. All rights reserved. The equilibrium condition is Y = C+ I 2. See answer Advertisement topeadeniran2 A. diseconomies of scale; expanding B. economies of scale; contracting C. diseconomies of scale, Suppose a firm's production function is given by Q= L^1/2 * K^1/2.The marginal product of labor and the marginal product of capital is given by: MPL= K^1/2 /2L^1/2 and MPk= L^1/2/2K^ 1/2. For example, in 2011, the money supply was $280, the price of a cell phone was $7.00, and the economy produced 600 cell phones. GDP Example Problems Flashcards | Quizlet Solved 4. Velocity and the quantity equation Consider a - Chegg Each sector employs capital and labor and its production function exhibits constant returns to scale and, The table below shows how the average cost of production for airplanes at a certain factory changes as the number of airplanes built at that factory increases. Derive the short run, Economic theory suggests that as plant size increases, the average cost of production should fall. At the equilibrium real wage RW0, the country's labor force works L0 hours and produc, Consider an economy described as follows: a. Compute private saving, public saving, and national saving. Each inhabitant can gather 25 coconuts in one day or bu, An economy produces three goods, soda, cheese, and pizzas, each by a separate firm. Consider a simple economy that produces only pies. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Corn Bread 137.50 $1.50 (Solved) - Consider a simple economy that produces only cell phones Consider a simple economy that produces only cell phones. The following B) $4 per unit, and average fixed cost (AFC) is, A firm has the production function q = 0.2LK + 5L^2K - 0.1L^3K. The total amount of money received in an economy by it, Use examples to distinguish between the resource market and the product market in the circular flow model. Each individual is endowed with 10 units of the consumption, The short run aggregate supply curve shows: A. what happens to output in an economy as the actual price level changes, holding all other determinants of real GDP constant. Question: Consider a simple economy that produces only cell phones. Suppose the amount the federal government collects in personal income taxes increases, while the level of GDP remains the same. For example, in 2016, the money supply was $400, the price of a cell phone was $5.00, and the economy produced 800 cell phones. Points: 1 / 1 Close Explanation 4. What is the optimal labor demand in the short run? The following table contains information on the economy's money supply, velocity of money, price level, and output. [Solved] Consider a simple economy that produces o | SolutionInn Velocity and the quantity equation Consider a simple economy that produces only cell phones. Assume it is currently in its initial steady state. Question: Consider a simple economy that produces only pens. In 1890, the typical American worked 60 hours per week. Year Velocity of Money (Cell phones) (D 1.44% (Dollars) 7.20 500 2017 2.44% 2018 15 500 5% The money supply 105% rate of from 2017 to 2018. What do you suppose determines the sh, Suppose we have a two good economy that produces beef and soy. RaceandSex11415242564over64TOTALSwhite,male2103,36013,61022,050white,female805803,3804,930black,male104601,0601,670black,female040270330allothersTOTALS3104,65018,78029,760\begin{array}{|l|l|l|l|l|l|} Calculate the GDP of this economy by the product and the expenditure approach, assuming that all values ar, Which of the following would show an efficient economy? The following table contains information on the economy's money supply, velocity of money, price level, and output. Investment is equal to 400. Using an aggregate demand-aggregate supply diagram, graphically illustrate and explain the impact of an escalating budget deficit on price level and real income in the long-run. The value of leisure is not included in GDP. Show how the event and its related adjusting entry affect the accounting equation. D. using the least costly prod. Inflation refers to the increase in the price of the goods and services in an economy during a year. Nominal GDP can increase if output falls and prices rise. Personal income will Since cell ph Change in the money supply was reflected partially did not change from 2017 to 2018 and the velocity of in changes in the price level. - the fallacy of composition. Capital and land are fixed factors while labor can move be, As the quantity produced by a firm increases, marginal cost eventually starts increasing because: A. of diminishing, or decreasing, marginal product of labor. Numerically. b) What is the optimal ratio of c, When an economy is on the flat portion of its AS curve: A. small changes in the price level have little or no effect on the amount of production in the economy. Use the information in the table to calculate the inflation rate for 2010, as measured by the consumer p, The index that includes the prices of raw material and other inputs that go into the production of goods that consumers buy is called the what? Suppose there is a single consumption good, x, and the consumer's utility fu, Which of the following are true of a barter economy? Use the national income accounting identities to calculate, __________ (66.00/3,780.00/69.00/3600.00). Suppose there are two closed economies: Economy A and Economy B. Since cell phone output did not change from 20 money the change in the money supply was reflected in changes in the pr 2017 to 2018 was The market wage for whites is $15, and the market wage for blacks is $10, Consider the following Economy: Only Coconuts are produced, using labor Year 1 Coconut Producer Total Revenue $20 Wages $5 Taxes $1.5 Interest on Loan $0.5 (a) What is the Coconut Producer contributio, Suppose you are hired to manage a small manufacturing facility that produces Widgets. 2000 (Base Year) 2009 Select one: a. Decr. The following table contains information on the economy's money supply, velocity of money, price level, and output. Fill in the missing values in the Explain the effects on goods and money market separately and the interaction of these markets. Experts are tested by Chegg as specialists in their subject area. What is the best. The government places a modest minimum wage on this industry above the market clearing equilibrium wage. Denim Value+Wine Value + Textbook Value= RGDP B. Th, Consider the following model of a very simple economy: C=100+0.8Y+0.05W I=200 W=1,000 Y=C+I S=Y-C Assume that wealth and investment remain constant. Assume that the market clearing assumption should and that Labor receives a wage equal to the MPL (dY/d, The first principle of economics is that people face trade-offs. a) Illustrate and explain what happens to the Economy over time and in the long-run if it ex, Using the data below, find the next set of question: a. When a significant fraction of domestic production takes place in foreign-owned facilities, a country's difference between GDP and GNP is as follows: Which of the following would be included in the gross national product (GNP) of the United States? Specifically, Related to Solved Problem Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburgers, shirts, and cotton. b. spending and income. Since pen output did not change from 2017 to 2018 and the velocity of money the change in the money supply was reflected v in changes in the price level. Find the equilibrium real interest rate. Find short-run equilibrium output. How do they affect the environment and economy? Consider two products, cloth and machines. If the wage rate is $4 and the price of capital is $6, then in order to minimize costs, the firm should use: a. more labor and less capital. (less than), Consider the following simple economy that produces only three goods: \\ The total value added of the artist is $3000. If the price of labor, w = $12 per unit of labor, what is the firm's marginal cost of production when the firm is producing 48 units of output? . You buy an iPad from the Apple Store. c. Suppose that government expenditures fall by 500, The table below contains data for a hypothetical closed economy that uses the dollar as its currency. The following table contains information on the economy's money supply, velocity of money, price level, and output. You will need to give up your current job that pays you $20,000. For example, in 2017, the money supply was $240, the price of a cell phone was $7.20, and the economy produced soo cell phones Fill in the missing values in the following table. In 2015, the economy produces 1,000 tonnes of apples, 2,000 tonnes of oranges, and 3,000 tonnes of bananas. Solved Consider a simple economy that produces only cell - Chegg (All numbers are in millions of dollars) If actual real GDP in this Economy equals $3,000 million, then this Economy wi, What are capital goods? All other trademarks and copyrights are the property of their respective owners. D. all of the above, Consider the following short run production function. You are dealing with the concept of - comparative advantage. The unanticipated change in inflation arbitrarily benefits _______. (Enter your response as an integer.) Draw the short run Phillips curve and relate it to our economy today. Foreign has 100 workers, a marginal product of labor of 8 making apples a, Assume the marginal rate of substitution between land and labor is 2 in producing apples and 1 in producing oranges. a. uses the least costly amount of resources available b. has a small number of people who do not work c. resources are used to make the most goods and services possible d. none of the above, Assume that an economy's production function is Y = 1000L^1/2, so that when the marginal product of capital is equated to the real wage the labor demand curve is L = 250, 000 (P/W)^2. \\ d) All of the above are correct. What is the base year for this particular set of CPI data? What is the marginal pro. On that date, the bond traded at a price of 99 (99% of par value) in the bond market. 1. India is producing 100 clot, Consider an economy with the following data: C(Y-T) = 135 - 0.7(Y-T), I = 210-10r, G is the level of government purchases, T=120, Ms=900 and the price level is P, L(Y,r) = 0.8Y-16r and future expected inflation is zero. Money \ supply \ grew \ = \ 0.05 \ or \ 5\% Economists tend to assume that a firm's production function is subject to increasing returns to scale, when the amount is small, and to decreasing returns to scale, when the output is large. Disposable personal income (DPI)equals $9710 billion. Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. In a certain economy, when income is $100, consumer spending is $60. The velocity of money remained the same at 15. Conversely, when calculated using current year prices it is called nominal GDP. Velocity and the quantity equation Consider a simple economy that The short-run economic outcome resulting from the increase in production costs is known as. The following table contains information on the economy's money supply, velocity of money, price level, and output. nominal GDP is larger than real GDP in years after the base year. Fill in the missing values in the following . Assume that the economy is initially at point Y in the graph. The following table contains information on the economy's money supply, velocity of money, price level, and output. B. all things are produced by the people of the lowest wage rate. For example, is aluminum used to produce a new mountain bike included in GDP? This country produces both goods (clothing with capital and labor; food with land and labor) and imports food. John's factory has high fixed costs and low variable costs. Since cell phone output the change in the money supply was reflected money + 2017 to 2018 was. \hline \text { Race and Sex } & \mathbf{1 - 1 4} & \mathbf{1 5 - 2 4} & \mathbf{2 5 - 6 4} & \text { over 64 } & \text { TOTALS } \\ {/eq}. Suppose that the present equilibrium price level and level of real GDP are 100 and $215 and that data set A represents the relevant aggregate supply schedule, Refer to the information provided in the table below to answer the question that follow : Assume that this economy produces only two goods X and Y. Consider a simple economy that produces only cell phones. -When income is $11,000, consumption spending is $7,300. The following table shows the prices and quantities of the goods over a three-year period. 1) If year 2 is the base year, the value for this economy's real GDP in year 3 is? You know that A) You are operating in a monopolistically competitive market, that is, you are a small part of a, Consider the following short run production function. Suppose the firm is operating in the short-run with K = 9. Draw the short run Phillips curve and relate it to our economy today. The marginal product of oranges in plant 1 is MP1 = 1,000 - 01 and in-plant 2 is MP2 = 1,200 - 202. The pizza company also buys $. b) the size of its factories. \\ a. All rights reserved. . Explain briefly why an economy that c. The table below provides information about an open economy with the public sector. Incorrect: The largest component of gross domestic income is wages, which are about three times as large as profit. Fixed cost is FC = 500 (sunk cost). People save 20% of their income, so their savings rate s = 0.20, In a certain economy, the components of aggregate spending are given by: C = 100 + 0.9(Y - T) - 500r I = 150 - 1,000r G = 200 NX = 50 T = 100 Given the information about the economy above, the immedi, Assume a specific-factors economy produces two goods, cloth and food, and that when representing the output of this economy graphically, cloth is on the x-axis and food is on the y-axis. Suppose tha, Refer to the data in the table below. What he can't spend, he converts into a more stable foreign currency for a steep fee. With no changein aggregate demand, how does the economy return to full employment? Compared with lower inflation rates, a higher inflation rate will ______ the after-tax real interest rate when the government taxes nominal interest income. For example, in 2017, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens. Consider a simple economy with two countries, the United States and India. According to the CAGE framework, which of the following is an example of a product most affected by economic distance? Use a production possibilities frontier to illustrate society's trade-off between two "goods" a clean environment and the quantity of industrial output. The following table contains information on the economy's money supply, velocity of money, price level, and output. \hline \text { all others } & & & & & \\ In an economy with rising prices, compared to the base year. Instruction: E, The following table shows prices an quantities for two goods over three different time periods. b) Suppose five of the planes produced were now sold overseas rather than domestically. ), An economy produces two goods, A and B; has two factors of production, K and L, and production of good A is capital-intensive, and the production of good B is labor-intensive. Household production and the underground economy. Consider two products, cloth and machines. The following table contains information on the economy's money supply, velocity of money, price level, and output. Consider the following simple model of an economy: C = 1,000 + .85(Yd) I = 780 - 800r G = 1,000 T = -50 + 0.09(Y) IM = 100 + 0.1(Y) EX = 100 + 0.1(Y_f) Assume Foreign Income = 10,000 r* = 11% What is the amount of the government budget deficit/sur, Consider a commodity money model described in the class but with the following features: There are 100 identical people in every generation. Suppose the production function is q=L^{0.75}K^{0.25}. Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs, In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is: C = 200 + 0.8Y. Question: 5. Experts are tested by Chegg as specialists in their subject area. The following table contains information on the economy's money supply, velocity of money, price level, and output. The following table contains information on the economy's money supply, velocity of money, price level, and output. d. provide minimum incomes for, Consider the following changes in the economy. - Definition & Formula. The following table contains information on the economy's money supply, velocity of money, price level, and output. Currently, each factory is producing 1,000 boxes of taffy at the same total cost. Solved Consider a simple economy that produces only cell - Chegg For example, in 2017, the money supply was $360, the price of a cell phone was $4.50, and the economy produced 800 cell phones. Consider a simple economy that produces only cell phones. Assume that the wage rate is $20. Use the IS-LM-model to explain what happens to national income. What is the level of productivity? If the wage rate is $15 and the firm has sunk costs of $1000 what is the firm's total cost fu, You estimate a short-run production function to be Q = 16L^{0.8} which gives a Marginal Product of Labor function MPL = 0.8*16L^{-0.2} = 12.8/L^{0.2}. For example, in 2012, the money supply was $360, the price of a cell phone was $4.50, and the economy produced 800 cell phones. {/eq}, GDP (2012) = Money supply * Velocity of money, {eq}Price \ of \ cell \ phones \ (2012) \ = \ \dfrac{GDP}{Cell \ phones} What do you suppose determines the, Suppose the marginal product of labor is 10 and the marginal product of capital is 8. Fill in the missing values in the following . Quantity of Money Price Level (Dollars) Quantity of Output (Cell phones) Nominal (Dolla: Year Velocity of Money increased 2017 7.20 500 2018 decreased 15 500 remained the same The mo rate of from 2017 to 2018. Consider a simple economy that produces only cell phones. The marginal propensity to consume for this economy is: a. Consider a simple economy that produces only pies. The following table Find a new equilibrium. If the GDP deflator in 2012 has a value of 98.0, then. prices have decreased 2 percent between the base year and 2012. \hline \text { black, female } & 0 & 40 & 270 & & 330 \\ The soda, pizza and cheese companies employ labor and land to produce their products. For example, in 2011, the money supply was $280, the price of a cell phone was $7.00, and the economy produced 600 cell phones. Question Velocity and the quantity equation Consider a simple economy

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