consider a simple economy that produces only cell phones

Fill in the missing values in the following table. 1. Eskew, Inc., which closes its books on December 31, is authorized to issue $500,000 of 9%, 15-year bonds dated May 1, 2018, with interest payments on November 1 and May 1. Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worke, Consider a Solow economy that begins in steady state. The following table contains information on the economy's money supply, velocity of money, price level, and output. With the steel she produced 10 authentic sculptures that she sold for $1,000 each to a local art dealer. Suppose that John, April, and Tristan have two production plants for producing orange juice. Numerically. \hspace{7pt}\text{Event/} \hspace{20pt} \text{Cash} \hspace{5pt}+ \hspace{10pt} \text{Other} \hspace{5pt} = \hspace{10pt} \text{Liabilities} \hspace{5pt} + \hspace{10pt}\text{Common} \hspace{5pt} + \hspace{5pt} \hspace{5pt} \text{Retained}\\ Calculate the amount for consumption. \\ Take the following information as given for a small, imaginary economy: -When income is $10,000, consumption spending is $6,500. C) the smallest number of firms that co, Suppose the production function for a firm is given by: q=4L^{0.5}K^{0.25}. \hline \text { Race and Sex } & \mathbf{1 - 1 4} & \mathbf{1 5 - 2 4} & \mathbf{2 5 - 6 4} & \text { over 64 } & \text { TOTALS } \\ Find the marginal product of labor (MPL). Although short-term interest rates have historically averaged less than long-term rates, the heavy use of short-term debt is considered to be an aggressive strategy because of the inherent risks associated with using short-term financing. Velocity and the quantity equation Consider a simple economy that produces only cell phones. In the short run, a firm that produces and sells cell phones can adjust a) where to produce along its long-run average-total-cost curve. Show this change on the PPC above (make sure to label the change clearly). Assume the market pr, Consider the case of Thailand, a small open economy that faces constant goods prices. Find what is the short-run total cost function C (C as a fu, A small open economy trades food and clothing on world markets at prices PTF and PTC. All rights reserved. B) the scale of operation at which economies of scale are exhausted. Fill in the missing values in the follow selecting the answers closest to the values you calculate. There are six equally productive individuals on the island. 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? \\ Assume Government cut income taxes by 10. 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. If the wage is $10 and the rental rate on capital is $20, the short-run average cost is _____, Consider the following firm with the production functionQ = F(L) = 2L^\frac12 L = labor, Wage w=12. With no changein aggregate demand, how does the economy return to full employment? Also suppose the economy is operating at full employment. Disposable personal income Consumption 0 100 100 120 200 140 300 160 a. For example, in 2017, the money supply was $360, the price of a pie was $9.00, and the economy produced 800 pies. Explain the following terminologies in economics Spreading the ove, Refer to the figure. What benefits do cottage industries provide to local populations? You will need to give up your current job that pays you $20,000. Consider a simple economy that produces only cell phones. Suppose an economy producers three goods: Apples, oranges, and bananas. Suppose you are deciding whether to spend your tax rebate check on AirPods or save the money for a new smart phone. In 2011, the value of the GDP deflator is, Based on the table, in Year 2, the value of the GDP deflator is 1960/1680 x 100 =, A simple economy produces two goods, Corn Bread andVideo Games. Suppose half the capital stock is suddenly destroyed(leaving the labor force unchanged). The market wage rate w=1 and price of capital r=4. Personal income (PI) equals $11210 billion. b. Suppose that in this economy, there is a pla, The market supply of labor is A) The sum of all jobs created in the economy B) Different for each individual based on training and education levels C) The total of all goods produced in the economy, Assume the economy can be described by the following set of equations: C/\bar{Y} = 0.4 +0.8\bar{Y}\\ I/\bar{Y} =0.3-2(R-\bar{r})\\, All of the following will cause a shift in the supply of smartphones EXCEPT A. an increase in the cost of producing smartphones. You are dealing with the concept of - comparative advantage. The bonds offer a real interest rate of 4.5% per year. 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 increase in real GDP per capita between 1890 and today understates well-being because the value of leisure is not included in GDP. In the short-run, the level of capital is fixed. Note that consumption does n, Consider a Solow growth model with no population growth. Derive the base-year-quantity price index. C. a decrea. Video Games 1,350.00 $60.00, In Year 2, nominal GDP is equal to: $81206.25, and real GDP is $40637.5 c. costs and revenue. Will a hike in the gas tax, Refer to the budget line shown in the diagram. 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. The market price of a product is above the average cost of production. How do you know? Yes. Nominal GDP can increase if output falls and prices rise. Question Velocity and the quantity equation Consider a simple economy that produces only cell phones. For example, in 2017, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens. e. spending and prices. Consider a simple economy that produces only cell phones. Suppose that John, April, and Tristan have two production plants for producing orange juice. 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. \hspace{70pt}\underline{\text{Total Assets}} \hspace{115pt} \underline{\text{Stockholders' Equity}}\\ "Corporate profits are much too high: Most corporations make profits equal to 50 percent of the price of the products they sell.". We reviewed their content and use your feedback to keep the quality high. For example, in 2017, the money supply was $320, the price of a cell phone was $8.00, and the economy produced 600 cell phones. Live Happley's production schedule for strawberries is given in t, Assume an industry uses labor and capital in its production process. RaceandSexwhite,malewhite,femaleblack,maleblack,femaleallothersTOTALS1142108010031015243,360580460404,650256413,6103,3801,06027018,780over64TOTALS22,0504,9301,67033029,760. Then, average total cost (ATC) is A) 25 cents per unit and average fixed cost (AFC) is 15 cents per unit. Many U.S. citizens currently work in foreign countries while few foreign citizens currently work in the U.S. For example, in 2012, the money supply was $280, the price of a pen was $7.00, and the economy produced 600 pens. The following table contains information on the economy's money supply, velocity of money, price level, and output. In the short run, when a firm is producing quantities that are greater than the quantity which minimizes short-run average costs, the marginal product of labor (MPL) A. will be rising the more the firm is producing. Consider a simple economy that produces only cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. b.not change GDP, it changes the category under which the spending is counted. Suppose we have a small economy that produces only two goods: pineapples and commercial airplanes. Year Quantity of money Velocity of money Price level Quantity of output Nominal GDP (Dollars) (Dollars) (Cell phones (Dollars) 2017 240 15 7.20 500 3,600 , Consider a simple economy that produces only cell phones. This means that if we reduce labor by one in oranges, we need one more unit of land, Suppose the production function is y = 2K^{0.5}L^{0.5} and in the short-run K is fixed at K = 16. We are interested in possible relationships between age, race, and sex. \hspace{23pt}\text{a} \hspace{27pt} \text{-6,000} \hspace{22pt} \text{+6,000} \hspace{40pt} \text{NA} \hspace{55pt} \text{NA} \hspace{52pt} \text{NA}\\ Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. Make sure to label both axis and include a dot on the curve that represents our state of economy. The inflation rate from 2017 to 2018 was. The pizza company also buys $. Consider a simple economy that produces two goods: pencils and muffins. Draw a graph of aggregate demand and aggregate supply to illustrate the current situation. Experts are tested by Chegg as specialists in their subject area. The Fisher effect and the cost of unexpected inflation The following table contains information on the economy's money supply, velocity of money, price level, and output. Find a new equilibrium. Identifying costs of inflation Consider a simple economy that produces only cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. a. b. multiproduct firms will enjoy a cost advantage because they have the opportunity to divide their pool of worker, Consider three firms: firm A, a mining enterprise; firm B, a steelmaker; firm C, a car-maker. The country has a constant technology, population and capital stock (in other words, real GDP is constant throughout). What is the per-worker production function? b) Find the steady-state capital stock per worker, and con, Consider the following aggregate expenditure model of an economy: C = 50 + (8/9)Yd T = (1/4)Y I = 100 G = 150 X = 100 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y, i) Suppose the following information is given about an economy that is described by the Solow model with technological progress and with population growth: \delta = 0.11 g_A=0.02 g_N=0.03 Then the ste. A) an inefficiently small amount B) an efficient amount C) an inefficiently large amount D) none, Suppose you are the owner of a small factory which produces tables and chairs. Which of the following do we subtract from GDP to obtain national income? 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. |Q| 0 |20 |60| 110 |170| 240| 290| 330| 355| 370| 380 |L |0| 1| 2| 3 |4 |5 |6| 7 |8 |9 |10 Suppose short run fixed costs are $200 and the wage, Suppose that a firm's production function is given by q = 20E^{0.50}. a. b. Apple Inc. pays the designe, Suppose the following information describes a simple economy. The inflation rate from 2011 to 2012 was __________ (5%/2.44%/1.44%/105). (Part A) You know that you are operating in a monopolistically competitive market, that is, you are a small part. 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. Assume there are no traveler's checks. . B) $4 per unit, and average fixed cost (AFC) is, A firm has the production function q = 0.2LK + 5L^2K - 0.1L^3K. Suppose the firm is operating in the short-run with K = 9. However, when examining the operation of large health and medical facilities, the opposite is often t, Suppose you are hired to manage a small manufacturing facility that produces Widgets. Inflation \ rate \ from \ 2011 \ - \ 2012 \ = \ 5\% Production Combin, Consider the following information describing an economy with demand-determined output. C. If a company follows a policy of matching maturities, this means that it matches its use of common stock with its use of long-term debt as opposed to short-term debt. 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 ou, Consider an economy where the aggregate production function is y^1/2 = k^1/2 . Derive an equation for the (short run) average product of labor and for the short run marginal product of labor. Money \ supply \ grew \ = \ \dfrac{12}{240} \ \times \ 100 What he can't spend, he converts into a more stable foreign currency for a steep fee. 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. In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is: C=100+0.75Y. b. determine how large the budget deficit should be. All other trademarks and copyrights are the property of their respective owners. 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. L stands for number of workers. Assume that the wage rate is $20. Gilberto receives a portion of his income from his holdings of interest-bearing U.S. government bonds. REQUIRED For example, in 2014, the money supply was $240, the price of a pen was $7.20, and the economy produced 500 pens. Alexander Holmes, Barbara Illowsky, Susan Dean, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. If both output and prices are falling, then both real GDP and nominal GDP will fall. 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. Discover the causes of inflation and how to calculate it. Points: 1 / 1 Close Explanation 4. What are the equilibrium levels of: a. GDP? The following table contains information on the economy's money supply, velocity of money, price level, and output. Inflation refers to the increase in the price of the goods and services in an economy during a year. (Enter your response as an integer.) Show how to think about them using the IS curve: i.e. The level of prices and the value of money, Money supply, money demand, and adjustment to monetary equilibrium, The classical dichotomy and the neutrality of money, Using money creation to pay for government spending, The Fisher effect and the cost of unexpected inflation. 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. Use a production possibilities frontier to illustrate society's trade-off between two "goods" a clean environment and the quantity of industrial output. Derive the current-year-quantity price index. Average living standards can be expected to be lower in a barter economy than in a, Consider a decrease in the supply of money that causes output to fall short of full employment as shown in the diagram to the right. Suppose the amount the federal government collects in personal income taxes increases, while the level of GDP remains the same. Given the real interest rate of 4.5% per year, find the nominal interest rate on Gilberto's bonds, the after-tax nominal interest rate, and the after-tax real interest rate under each inflation scenario. For example, in 2011, the money s; The equation of exchange Consider a simple economy that produces only cell phones. Suppose you have the following disposable income and consumption data for an economy, as shown in the table below. Consider an economy has the following information 1. Explain the effects on goods and money market separately and the interaction of these markets. Explain your graph. 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. b. 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. Received an $18,000 cash advance for a contract to provide services in the future. 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. Transfer Payments 600 b. Few foreign citizens currently work in the U.S. and few foreign firms maintain facilities in the U.S. Suppose also that we produce 125 units of beef and 460 units of soy. Since cell phone output the change in the money supply was reflected money + 2017 to 2018 was. B. fully employing all economic resources. Assume that this economy is currently at point "C". Decreasing Question: Consider a simple economy that produces only cell phones. Inflation-induced tax distortions National income will The realization of these economies of scale, however, is far, Consider a simple economy that produces two goods: pens and oranges. explain why real domestic output and the price level are directly related. B. how firms respond to changes in interest rates. Assume that this economy produces only two goods X and Y. Here are the quantities produced and the prices for pineapples and commercial airplanes. This country produces both goods (clothing with capital and labor; food with land and labor) and imports food. Under what circumstances would GNP be much larger than GDP? Money \ supply \ grew \ = \ 0.05 \ or \ 5\% Get access to this video and our entire Q&A library, What Is Inflation Rate? {/eq}. Question: Consider a simple economy that produces only cell phones. Textbooks 15 90 20 100, Real GDP in 2009 equals $6680. 0.650. Inflation \ rate \ from \ 2011 \ - \ 2012 \ = \ \dfrac{0.36}{7.2} \ \times \ 100 Show more Business Economics Answer & Explanation Solved by verified expert Velocity and the quantity equation Consider a simple economy that produces only cell phones. , which statement accurately describes the articles of confederation, manteca police department,

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