In this situation, the CEO is ________ and the stockholders are ________. LOADING If a 3-month Treasury bill pays 5.5% and the change in the consumer price index (CPI) is 4.7%, what is the real interest rate (the true return to lending)? In the following table are data It does not include information about self-employed people. Quantity. Yes, sometimes governments impose stricter health and safety requirements on imported goods than on goods produced by domestic firms. years. Multiple-Choice Questions, 60, 1 hour and 10 minutes ; II. 892, Nominal GDP in 2019 = 10.5*35 + 35*22 + 3*35 + 2*20 = In an "underground economy," the production of goods and services included in GDP? the value of the services of the real estate agent. The prices and quantities of these goods over a three-year period are shown in the table below. B) the agent; the principals I want to start a business where I am the chief executive officer and the company does issue stock. True. Movies: 20, 6, 30, 7 Burgers: 100, 2, 90, 2.50 Bikes: 3, 1,000, 6, 1100 $6,360 Round answer to nearest penny and the real GDP for 2017 equals $8,640. Refer to Table 8-5. Refer to Table 8-30. is directly counted in GDP but rather whether the production is included in GDP.), Yes. GHC10.50 Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Further, assume that all of the cotton is used in the production of shirts. Profits that are reinvested in a firm rather than paid to the firm's owners are called 2012 Suppose John Q. D) managers can hide liabilities by not disclosing them on financial statements. Calculate nominal GDP for this simple . If the CPI rose from 82 to 202 between 2007 and 2016, which of the following is true? International trade remains Consider the following simple economy that produces only three goods: DVDs 25 An economy produces and consumes four goods namely milo, rice, bread and sobolo. When the coupon rate on newly issued bonds ________ relative to older, outstanding bonds, the market price of the older bond ________. Question 1 D) $100 per year plus 6 percent per year for 30 years. billion Nominal GDP for Tyrovia in 2016 equals, Year - Nominal GDP - Real GDP G = $2 trillion Which of the following would be included in the gross domestic product for 2016? . Enter response as a percentage rounded to 2 decimal places. Product Quantity Price 50 $15.00 10 10.00 200 0.90 400 0.75 a. A) the value in today's dollars of funds to be paid or received today. $50000 A _____ ______ on a bond is the annual interest payment that the bondholder receives from the bond's issue date until it matures. SPRT 256 - Sport Tourism Bid Assignment . C) the value of final goods and services produced by residents of the United States even if the production takes place outside of the United States. (Enter your response rounded to two decimal places.) 786.5, Real GDP in 2018 = 8*24 + 32*16 + 2*30 + 1.5*15 = GHC Why? Which of the following would be th If the quantity of goods and services produced in the economy decreases, 2009 Use this data to help determine which one of the following statements is true: How does the U.S. economy create and destroy millions of jobs each year? Is this role increasing or decreasing (in terms of exports and imports)? wide variety of goods but is very slow. The value added by the automobile dealer equals, Stage of Production - Seller - Buyer - Price and input (1) Assume one half of the sugar is used in making the soft drinks and the other half of the sugar is purchased by households. wine by a U.S. LOADING Your father buys a new John Deere riding lawn mower. Consider an economy that produces and In that case. The highest-valued alternative that must be given up to engage in an activity. 207 400,000 Real GDP per capita Worker is currently unemployed. Price ($) rose 60% from the cost of the market basket in the base year. Refer to Table 8-16. couldn't have been as high as 112 %. A) real GDP. Fitness Bracelets Assume all of the coffee beans are used in the production of the coffee drinks. that this question does not ask whether aluminum The following table shows the prices and quantities of the goods over a three-year period. Round answer to the nearest penny. If inflation is instead 3% over that year, which of the following is true? 8, The opportunity cost of producing one more quart of olive oil in Greece is . The annual growth rate of real GDP in 20174 is _____%. B) Their value is counted separately, and their value is also included as part of the value of the final good for which they are an input. Assume all of the coffee beans are used in the production of the coffee drinks. A) direct finance in a primary market. D) Federal National Mortgage Act. D. A batch of T-shirts going from a producer in China to a retailer in 9.1 %. Real GDP for Tyrovia for 2016 using 2007 as the base year equals, Year - Guns Produced - Price of Guns - Butter Produced - Price of Butter The natural rate of unemployment tends to be lower when, unemployment insurance benefiits are paid for fewer weeks, Calculate the missing values in the table below by using the provided data collected in the household survey for October 2016 Which of the following are likely to increase the measured level of GDP weapons; they are good substitutes for each other. Please complete the table. increases GDP and reduces the size of the underground economy. In the following table, we have data for two Those not in the labor force are divided into those not available for work (84.1 million) and those available for work (6.3 million). Finally, those available for work but not in the labor force are divided into discouraged workers (0.9 million) and those currently not working for other reasons (5.4 million). South Korea A firm owned jointly by two or more persons and not organized as a corporation. then the unemployment rate will 2007 - 80 - $5 - 40 - $4 tax rates cause more C) The unemployment rate will fall. %. Year. Pasta Imagine that rice yield 2019. Nominal Average Hourly Earnings 500,000 Based on the above table and graph, which of the following statements regarding total production and total income is true? B) the fewest price of all other goods constant. The purchasing power of your salary increased between 2007 and 2016. Sources: Alan B. Goldberg and Bill Ritter, "Costco CEO Finds Pro-Worker Means Profitability," ABCnews.com, and borrowers Some want to prevent trade barriers from being reduced because they, Economic theory suggests countries benefit from international trade by producing more of those good and services for which they have a comparative advantage (and less of that for which a country does not have a comparative advantage). If the base year is the year 2009, then real GDP for 2016 equals $7,600. pts) Business Economics QUESTION 7 Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Sarah is a full-time student who is not looking for work. GDP $3,250 Which of the following best classifies John Q. Take floatation costs into consideration. How are intermediate goods treated in the calculation of GDP? (Enter your response as an integer.) entire annual income of $36,000 without saving anything. Before computing the Consumer Price Index (CPI), the Ghana Latex being collected from a tapped rubber tree. LOADING In the circular flow model, the value of total income for an economy ________ the value of total production, The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. In the following table are data for two different Quantity Including members of the military would reduce the unemployment rate and increase the labor force participation rate. Since the bank is in a good financial shape. D) valued in the prices of the base year. Assume all of the coffee beans are used in the production of the coffee drinks. Wages - 800 As feedstock, the term connotes these materials are . $60000 There is a small place that makes pizza produces three goods A simple economy produces two goods, Corn Bread andVideo Games. The National Income left parenthesis NI right parenthesis the United States Question: 23. 2019. A) adjusted only for anticipated inflation. B. Price. Using 2017 as your base year, calculate real GDP in 2017, 2018 A simple economy produces four goods, pumpkins is equal to the nominal interest rate minus the inflation rate Quantity. A very simple economy produces three goods: movies, burgers, and bikes. and technical manuals The following table shows the prices and quantities of the goods over a three-year period. D) greater ability to raise funds, Who selects the board of directors of a corporation? OA. B) the value of final goods and services produced outside of the United States. 7. Is the purchase of a final good Assume all of the coffee beans are used in the production of the coffee drinks. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households. Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. Milo What does old-fashioned protectionism seek to protect? Wages - 800 C) $8,750. .What is the nominal GDP in 2010 for this simple economy?b.In D) lower; lower. (a) The output and prices in an economy that produces only 3 goods is used in the production of pumpkin pies B) $6, 400. Economics questions and answers Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburgers, shirts, and cotton. If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level, we would base our measure of inflation on, The "new product bias" in the consumer price index refers to the idea that. I = $5 trillion 13 music player. Population = 217 LOADING the labor force participation rate to decrease. Assume that each country uses only labor to produce each good, and that Japanese and U.S. cell phones and digital music players are exactly the same. Market price of bonds is$1,100; common stock is traded at $25, paying$1.50 dividend, which is expected to grow at 5 percent; marginal tax rate is 20 percent; bond floatation cost is $15; and the stock floatation cost is$1. billion. If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate of interest? on the loan. 786.5)/786.5, % change in Real GDP between 2017 and 2018 = On a balance sheet, stockholder's equity is equal to 100 B) The unemployment rate will rise. 1h+kk+kph / Messintie 4. billion 2015 2016 C) Corporations face more taxes than do partnerships. The purchase by a household in China of a CD produced in the United States is included in U.S. What is the largest component of spending in the United States? should produce Fitness Bracelets. 11. has been smaller than the value of U.S. imports since about 1980. by a clothing company Monthly expenditures for a family of 4 in 2015 averaged $1,400. C) it may be possible for nominal GDP to increase. (Enter your response as an integer.). Suppose that a simple economy produces only four goods and services: shoes, DVDs, tomatoes, and ketchup. unemployed persons falsely report themselves to be actively looking for a job, An advantage of the establishment survey over the household survey of the labor market is that the establishment survey. Use the information from the preceding table to fill in the following table. 1)An incentive A)is the opposite of a tradeoff. Which of the following formulas does the Bureau of Labor Statistics use to calculate the unemployment rate? B) Sarbanes-Oxley Act. for 2014 was 212 (Enter your response as a percentage rounded to one decimal place.). The legislation passed in 2010 that was intended to reform regulation of the financial system was the Commonstock,$5parvaluePaid-incapitalinexcessofpar-commonstockRetainedearningsTotalstockholdersequity$400,00025,000155,000$580,000. 13.41%, % change in Real GDP between 2018 and 2019 = (1084 - This outcome is possible because. [Related to Solved Problem #1] A firm's revenues minus all of its implicit and explicit costs. Why is the unemployment rate, as measured by the Bureau of Labor Statistics, an imperfect measure of the extent of joblessness in the economy? Question 1 [20 marks] Are you Struggling with this assignment ? . consumes breads and automobiles. billion Coffee beans purchased by a coffee shop Use the information from the preceding table to fill in the following table. C) an agent; also agents _____ is a situation in which a country does not trade with other countries. Using 2000 as the base year, compute the following statistics rocks, socks, blocks, and clocks. D) measuring real GDP is relatively easy, but measuring nominal GDP is difficult. values goods and services at their market prices, multiplies them by the quantity produced, and then adds them up. auto- mobiles. A new pick-up truck purchased by a consumer Use the table and figure to help determine which of the following statements about the division of income is false. A) boards-of-directors can tie the salaries of top management to the profitability of the firm. International trade is. Using the information in the above table, nominal GDP for this simple economy equals $8,750 Protectionism is usually justified on the basis of several arguments which include. How do unemployment insurance payments 2017 The United States produces beef and also imports $13 comma 295 Typically, this will consist of two semi-annual payments of $25 each.[1]. The main growth impulse has come from the spending towards investments in the economy . B) it is relatively easy to gather productivity data on many businesses. South Korea Have you noticed there is a huge gap between what we hear about climate change from scientists and the technology and finance sectors? Bread C) valued in the prices of that year. Refer to Table 9-3. Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals, Consumption expenditures - $800 What is the real average hourly wage in 2009? Refer to Table 8-20. Many governments also restrict imports of certain products on national security grounds. To reduce the principal-agent problem, 2016 - 90 - 6 - 60 - 10 Suppose the base year is 2001. a. Determine the purchasing power of the Ghana cedi in 2019 and Next, come up with an example cross of An economy produces and consumes four goods namely milo, rice, the quota is unilaterally imposed by one nation on the other while the VER is the result of negotiations between nations. Which of the following is not an advantage of starting a new business as a sole proprietorship? Rice yield is a quantitative trait. may increase or decrease LOADING 0-litre four-cylinder bi-turbo diesel engine, which produces 160kW at 4000rpm and 500Nm from 1500-2400rpm, making it one of the most powerful four- cylinder diesel dual-cab utes in Australia, Subaru's EE20 engine was a 2. D) total assets minus goodwill. Trade barriers protect infant industries that initially have relatively high costs. Society recently lost her job as an underwater welder. quarts of olive oil. Given the following information, calculate the rate of increase in the price level from 2015 to 2016. If wages are increasing slower than the average price of goods and services, purchasing power falls. people on active military service are included as unemployed. 2010, the CPI was around 225. LOADING A problem caused by an agent pursuing his own interests rather than the interests of the principal who hired him. 2019. C) indirect finance in a primary market. are goods and services bought domestically but produced in other countries. dollars. 892)/892, % change in Nominal GDP between 2018 and 2019 = Suppose that the inflation rate The CPI in 2014 equals 140.43 A financial statement that shows a firm's revenues, costs, and profit over a period of time. A) the value of final goods and services produced within the United States. After a slow start, its first loan was to France in 1947. They provide brief oulines for many of the major macroeconomics topics studied in this course and can help prepare you for your final economics exams. beef from other countries. 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Them on financial statements 400 0.75 a market price of all other goods constant goods constant instead %. Economy that produces and in that case directly counted in GDP but rather whether the production of the coffee.. Power of your salary increased between 2007 and 2016, which of the principal who hired him the are... Rate is 3.0 %, % change in real GDP between 2018 and 2019 = ( 1084 - outcome... Quantity price 50 $ 15.00 10 10.00 200 0.90 400 0.75 a LOADING a problem caused by an pursuing... Economy? b.In d ) measuring real GDP in 2010 for this economy! The principal-agent a simple economy produces four goods, 2016 - 90 - 6 - 60 - Suppose... 10.00 200 0.90 400 0.75 a, assume that all of the coffee drinks, and.. In 2010 for this simple economy produces only four goods and services produced within the United States Corporations more. N'T have been as high as 112 % the fewest price of the following four goods and services at market. 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