For example, in 2017, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens. 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? Suppose also that we produce 125 units of beef and 460 units of soy. Decreasing, Chapter 30 Post-Class Assignment Part II: Mon, SS Persia, Greece, Rome multiple choice test, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Unit 5: Civil War & Reconstruction Study Guide. explain the three dis, Suppose the following situation exists for an economy: Kt+1/N < Kt/N. \\ If Americans still worked 60-hour weeks, as they did in 1890. When GDP is computed using the base year prices, it is referred to as real GDP. 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, Consider an economy that produces consumer goods and capital goods. Question: Consider a simple economy that produces only cell phones. Determinants of aggregate suppDeterminants of aggregate supply The following graph shows a decrease in aggregate supply (AS) in a hypothetical economy where the currency is the dollar. Use the key terms to complete the following sentence: A(n) ____________ is a check issued by a bank against its own funds. \hspace{28pt} \text{NA} \hspace{29pt} \text{-4,500} \hspace{40pt} \text{NA} \hspace{55pt} \text{NA} \hspace{45pt} \text{-4,500}\\ For example, in 2017, the money supply was $360, the price of a pie was $9.00, and the economy produced 800 pies. | Year |Pens |Pens|Oranges |Oranges |. Suppose that the table below shows an economy's relationship between real output and the inputs needed to produce that output: Consider the following data. 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. Currently, each factory is producing 1,000 boxes of taffy at the same total cost. In 2015, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. This tends to ______ saving, thereby ______ the quantity of investment in the economy and ______ the economy's long-run growth rate. Suppose a production function is q = K^(1/2)L^(1/3) and in the short run capital (K) is fixed at 100. The bonds offer a real interest rate of 4.5% per year. Consider a simple economy that produces two goods: pencils and muffins. What is the marginal pro. 1. In the short run, the firm has signed a lease to r, Maya papaya runs a profit maximizing firm in which she uses capital (k) and labor (l) to make her pies. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. d. spending and output. Draw the short run Phillips curve and relate it to our economy today. The following table contains information on the economy's money supply, velocity of money, price level, and output. Suppose you are deciding whether to spend your tax rebate check on AirPods or save the money for a new smart phone. \hspace{17pt}\text{Adj.} The money supply is $3 trillion, the price level equals 2, the real GDP is $6 trillion in base-year dollars. Find a new equilibrium. The following table contains information on the economy's money supply, velocity of money, price level, and output. We will let suicide victims be our population. Show how the event and its related adjusting entry affect the accounting equation. All other trademarks and copyrights are the property of their respective owners. The money supply grew at a rate of from 2014 to 2015. "If a recession is so severe that the price level declines, then we know that both real GDP and nominal GDP must decline." In this economy, equilibrium GDP is ? Suppose the price of labor is w = 24 and the price of capital is r, Consider a simple economy that produces only cell phones. The firms production function is : f(k, l) = k1/3L1/2 The rental cost of Captain is 1$/unit and, 1. Worker B can produce 10 tables or 10 chairs, and worker C can produce 8 tables or, Suppose you are thinking of starting a new business. What is the opportunity cost of apples? b. He is paid in cash twice per month. Incorrect: The largest component of gross domestic income is wages, which are about three times as large as profit. A. If th, Suppose that this year's velocity is 10, nominal GDP (PY) is $50 billion, and real GDP (Y) IS $10 billion. For example, is aluminum used to produce a new mountain bike included in GDP? Assume Government cut income taxes by 10. d. provide minimum incomes for, Consider the following changes in the economy. a. 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. Question: Consider a simple economy that produces only cell phones. From this information, if income is $101, what is consumer spending? Explain the following terminologies in economics Spreading the ove, Refer to the figure. 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 In Home a worker can produce 3 apples or 5 bananas. \hline \text { black, male } & 10 & 460 & 1,060 & & 1,670 \\ Assume that there are two sectors, manufacturing and farming. B) the scale of operation at which economies of scale are exhausted. Since cell phone output did not chang money the change in the money supply was reflected in changes 2017 to 2018 was a. How many workers to hire, b. B. 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. On that date, the bond traded at a price of 99 (99% of par value) in the bond market. 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. \\ The following table shows two scenarios: a low-inflation scenario and a high-inflation scenario. 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. The marginal product of labor is \frac{10}{E^{0.50. _______ per year. Consider a simple economy with two countries, the United States and India. Draw a graph of aggregate demand and aggregate supply to illustrate the current situation. Live Happley's production schedule for strawberries is given in t, Assume an industry uses labor and capital in its production process. Think about the following news item. Under what circumstances would GNP be much larger than GDP? The Fisher effect and the cost of unexpected inflation You may assume all households in the economy ate the same bundle/are the same. Nineteen percent of employers provide a one-day paid holiday with workers off Thanksgiving Day. The economy is in long-run macroeconomic equilibrium. For example, in 2018, the money supply was $200, the price of a cell phone was $7.50, and the economy produced 400 cell phones. - equity. Suppose tha, Refer to the data in the table below. Draw graphs to support your answer. The unanticipated change in inflation arbitrarily benefits _______. The country has a constant technology, population and capital stock (in other words, real GDP is constant throughout). Createyouraccount. \\ 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. Now consider the long-run impact of the change in money growth and inflation. 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. The Gross Domestic Product evaluates general production in the economy. $1 per pound, Commercial airplanes 10 airplanes $10 million per airplane. 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. In 2016, the economy produced 85 f, Consider a firm with the production function, q=(K^1/2+L^1/2)^2. All numbers are in millions of dollars. copyright 2003-2023 Homework.Study.com. Assume Government expenditure has increased by 10. Which items involve a microeconomic issue and which involve a macroeconomic issue? Consider a simple economy that produces only cell phones. Consider two products, cloth and machines. Round to 2 decimal places. Question: Consider a simple economy that produces only cell phones. 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. Our experts can answer your tough homework and study questions. C), Fill in the blanks (_) and explain your answer: If a firm is using a lot of capital and just a little labor, the marginal product of labor is (_) relative to the marginal product of capital making it, Consider a simple economy that produces only pies. For example, in. The pizza company also buys $. The equilibrium condition is Y = C+ I 2. Find the probability that a randomly selected individual was a white male. There are two goods, Coal and Wheat, produced with two factors of production, capital and labour. Suppose GDP in this country is $1,175 million. "Whenever real GDP declines, nominal GDP must also decline." This country produces both goods (clothing with capital and labor; food with land and labor) and imports food. Show the effect this will have on national income, unemployment, inflation, and interest rates with the help of an ADAS diagram, assumi, An economy has a recessionary gap. Show more Business Economics Answer & Explanation Solved by verified expert Be su. = 11860 - 1250 + 600 = 11210 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. Explain your graph. b. 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. {/eq}, GDP (2012) = Money supply * Velocity of money, {eq}Price \ of \ cell \ phones \ (2012) \ = \ \dfrac{GDP}{Cell \ phones} You have 3 workers: worker A, B, and C. Worker A can produce 4 tables or 8 chairs in one day. Fill in the missing values in the following . Corporate earnings 1,250 The following table contains information on the economy's money supply, velocity of money, price level, and output. Denim Value+Wine Value + Textbook Value= RGDP For example, in 2016, the money supply was $360, the price of a cell phone was $9.00, and the economy produced 800 cell phones. If the equilibrium quantity of airplanes demanded is 100, can this economy take full advantage, Based on the Ricardo model, there is gain from trade because A. all things are produced by the most productive workers. The efficiency of ma3. explain why real domestic output and the price level are directly related. Corn Bread 137.50 $1.50 Agree. "Corporate profits are much too high: Most corporations make profits equal to 50 percent of the price of the products they sell.". 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 0.650. 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, selecting the answers closest to the values you calculate. Since cell phone output did not change from 2017 to 2018 and the velocity of money the change in the money supply was reflected In changes in the price level. Then the profit-maxi, A firm's production function is given by q = f(L, K) = LK + 2L^2 K - L^3. \hline \text { white, female } & 80 & 580 & 3,380 & & 4,930 \\ B. a decrease in the number of smartphone manufacturers. As an economist for the United Nations, you have been asked to report on the role of cottage industries in Pakistan. The inflation rate from 2011 to 2012 was __________ (5%/2.44%/1.44%/105). In a certain economy, when income is $100, consumer spending is $60. A. Price \ of \ cell \ phones \ (2012) \ = \ \$7.56 B) $4 per unit, and average fixed cost (AFC) is, A firm has the production function q = 0.2LK + 5L^2K - 0.1L^3K. Numerically. \\ B. will be falling the more the firm is, Suppose in the short run a firm's production function is given by Q = L^(1/2) x K^(1/2), and that K is fixed at K = 9. The production function is: f(K,L) = K^1/3 L^1/3. Fill in the missing values in the following table. What is the optimal labor demand in the short run? Price and quantity data are as follows: (Enter your response as an integer.) Product Market C = Ca + 0.7(Y - T) ; Ca = 1,000 - 10r ; T = 100 + 0.15Y ; Ip = 3,500 - 20r ; G = 3,000 NX = 2,000 - 0.4Y Money M. Quantecon is a country in which the theory of money operates. b. Production and Prices in Year 2 This firm operates in the short run where capital (K) is fixed at a quantity of 16. The following table contains information on the economy's money supply, velocity of money,.
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