consider a simple economy that produces only cell phones

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If the equilibrium quantity of airplanes demanded is 200, 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. Quantity of Money Price Level Quantity of Output Nominal GDP (Dollars) Velocity of Money (Dollars) (Cell phones) (Dollars) 2017 240 7.20 500 2018 252 500 Year 15 The money supply grew at a rate of fram 2017 to 2018. The following table contains information on the economy's money supply, velocity of money, price level, and output. c. Assuming that this economy produces only the thr. Suppose that a simple society has an economy with only one resource, labor. Consider a simple economy that produces only cell phones. C. Whe, Suppose that a firm has a production function given by: q= 10 L^{0.4}K^{0.6}. Inflation-induced tax distortions {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 cost are $200 and the wage rate for labor is $50. 2000 (Base Year) 2009 B. all things are produced by the people of the lowest wage rate. The money wage rate falls, real GDP increases, and the price level rises. Find short-run equilibrium output. The firm pays a wage of $30 per units and pays a rental rate of capital $10 per unit. explain why real domestic output and the price level are directly related. On that date, the bond traded at a price of 99 (99% of par value) in the bond market. 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. a. Decreasing The realization of these economies of scale, however, is far, Consider a simple economy that produces two goods: pens and oranges. A) emplo, Suppose in the short run a firm's production function is given by Q = L^{1/2}K^{1/2}, and that K is fixed at K = 36. C. attempts to increase the output of the economy wil, If an economy is being "productively efficient," then that means the economy is A. producing the products most wanted by society. c. costs and revenue. prices have decreased 2 percent between the base year and 2012. What are the equilibrium levels of: a. GDP? All of the above would push GNP above GDP. The transaction costs of exchanges are lower in a barter economy than in a money economy. Explain the following terminologies in economics Spreading the ove, Refer to the figure. (a) Graph the short-run total product curve. (Enter your response as an integer.) They have a total of 850 crates of oranges. Assume that the economy is initially at point Y in the graph. a. Graph Home's PPF, with apples in the horizontal axis, b. All numbers are in millions of dollars. e. spending and prices. Production Combin, Consider the following information describing an economy with demand-determined output. C. all things are produced at the lowest cost. What benefits do cottage industries provide to local populations? a) What is the price level and money supply? In an economy with rising prices, compared to the base year. Refer to the table. The size of its factories, c. Which short-run average-total-cost curve to use, d. All of the above are correct, Suppose in the short run, a firm is able to adjust the amount of labor (L) while the amount of capital (K*) is fixed. Suppose we have a small economy that produces only two goods: pineapples and commercial airplanes. Inflation refers to the increase in the price of the goods and services in an economy during a year. a) The GDP of this country would be $ million. The first event is recorded as an example. Explain the following terminologies in economics Spreading the overhead. 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. 1. Graph the short-run marginal and average product curves Graph the short-run total co, If an increase in production lowers your firm's short-run average total cost, your firm is likely experiencing blank and should consider blank output levels. Use the national income accounting identities to calculate, __________ (66.00/3,780.00/69.00/3600.00). Even if GDP included these types of production, why would it still be an imperfect measure of economic well-being? The government taxes nominal interest income at a rate of 10%. According to the CAGE framework, which of the following is an example of a product most affected by economic distance? Suppose half the capital stock is suddenly destroyed(leaving the labor force unchanged). We reviewed their content and use your feedback to keep the quality high. The following table contains information on the economy's money supply, velocity of money, price level, and output. b) Solve for the short-run cost function (, When the costs of a good are paid for by nonconsumers, _______ of the good is produced. The short-run economic outcome resulting from the increase in production costs is known as. 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. Disposable personal income Consumption 0 100 100 120 200 140 300 160 a. In this economy, the equilibrium level of real GDP is: A market system (market economy) depends on the market to: a. find the most efficient way of using resources. Consider a simple economy that produces only pies. Suppose that John, April, and Tristan have two production plants for producing orange juice. Indirect Business Taxes 40 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? (Enter your response as an integer.) Suppose a production function is q = K^(1/2)L^(1/3) and in the short run capital (K) is fixed at 100. If the marginal product of capital is 50 and the marginal product of labour is 50, then in the long run the firm should in order to minimize its costs of producing its output. copyright 2003-2023 Homework.Study.com. b. Use the e. Consider a simple economy that produces only pies. Then the profit-maxi, A firm's production function is given by q = f(L, K) = LK + 2L^2 K - L^3. GDP is not adjusted for crime or other social problems. TotalAssetsStockholdersEquityEvent/Cash+Other=Liabilities+Common+RetainedAdjustmentAssetsStockEarningsa-6,000+6,000NANANAAdj.NA-4,500NANA-4,500\begin{array}{lrr} 1. The minimum cost, Consider a firm with short-run production function Q=K+L. For example, in 2011, t, a. 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. (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? For example, in 2012, the money supply was $280, the price of a pen was $7.00, and the economy produced 600 pens. 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. \\ What is t, Both Kate and John own saltwater taffy factories. Consider a simple economy that produces only croquettes. If both output and prices are falling, then both real GDP and nominal GDP will fall. Economy A has a high average rate of time preference relative to economy B?s low average rate of time preference. The government cuts public spending. 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. (Part A) You know that you are operating in a monopolistically competitive market, that is, you are a small part. GNP considers production that occurs outside the U.S. The following table contains information on the economy's money supply, velocity of money, price level, and output. 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 firm has 16 units of capital. a. Consider a simple economy that produces only cell phones. Indicate whether the following statement is correct or incorrect. Suppose in the short run a firm's production function is given by Q = L1/2K1/2, and K is fixed at K = 36. d. provide minimum incomes for, Consider the following changes in the economy. \\ Derive the current-year-quantity price index. For example, in 2017, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens. GDP is an imperfect measure of economic well-being because it fails to measure what types of production? Calculate the amount for consumption. Using the line drConsider a decrease in the supply of money th, An economy with zero net exports is described below: C= 80 + 0.75 (Y - T) I^p= 100 G= 150 NX= 0 T= 180 The multiplier in this economy is 4. a. Last year, she purchased $7,000 worth of scrap metal. Assume the following equations summarize the structure of an economy. 4. Assume it is currently in its initial steady state. Derive the base-year-quantity price index. 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. c. There are only a handful of firms competing against each other in, Suppose you have a firm whose production function is given by Q=K^0.3L^0.7. 2) If year 1 is the base year, the valu. . Which of the following is NOT a shortcoming of GDP as a measure of well-being? In 2016, the economy produced 85 f, Consider a firm with the production function, q=(K^1/2+L^1/2)^2. The following table contains information on the economy's money supply, velocity of money, price level, and output. An artist buys scrap metal from a local steel mill as a raw material for her sculptures. \\ Fill in the missing values in the following . b. an economy will automatically seek the level of output at which, In the long run, a firm that produces and sells textbooks gets to choose: a. All other trademarks and copyrights are the property of their respective owners. For example, in. What is the base year for this particular set of CPI data? The economy has two sectors-cloth and food. How do they affect the environment and economy? Define the term information technology. Labor can be used to produce only two commodities - X a necessity good (food), and Y, a luxury good (music and merriment) Su, Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. In the United States, the difference between GNP and GDP is _________ that of many other countries. {eq}Velocity \ of \ money \ (2011) \ = \ \dfrac{GDP}{Money \ supply} There are two goods, Coal and Wheat, produced with two factors of production, capital and labour. The country has a constant technology, population and capital stock (in other words, real GDP is constant throughout). 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. Money \ supply \ grew \ = \ 0.05 \ or \ 5\% 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. \\ Instruction: Your response should be rounded to the nearest whole number. 110x40 + 80x11 + 20x90, If nominal GDP is less than real GDP, then the price level must have fallen during the year For example, in 2012, the money supply was $360, the price of a cell phone. 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. c. decide how much government regulation there should be. 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. Instruction: E, The following table shows prices an quantities for two goods over three different time periods. b. Inflation \ rate \ from \ 2011 \ - \ 2012 \ = \ 5\% Consider two products, cloth and machines. 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? Received an $18,000 cash advance for a contract to provide services in the future. - equity. If the wage is $10 and the rental rate on capital is $20, the short run marginal cost is _____. The economy is in long-run macroeconomic equilibrium. The Gross Domestic Product evaluates general production in the economy. Fill in the missing values in the follow selecting the answers closest to the values you calculate. Inflation \ rate \ from \ 2011 \ - \ 2012 \ = \ \dfrac{0.36}{7.2} \ \times \ 100 Consider a simple economy that produces only cell phones. a. (c) Graph the short-run t, Imagine that an economy produces two goods: flashlights and fishing lures. There are six equally productive individuals on the island. a. output and prices. Alexander Holmes, Barbara Illowsky, Susan Dean, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Gross Domestic Product (GDP) in which of the following ways? Our experts can answer your tough homework and study questions. For example, in 2019, the money supply was $360, the price of a pie was $9.00, and the economy produced 800 pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. The market wage rate w=1 and price of capital r=4. Velocity \ of \ money \ (2011) \ = \ \dfrac{3,600}{240} \end{array} Consider an economy has the following information 1. 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. Table: Inflation Rate (%); Real Interest Rate (%); Nominal Interest Rate (%); After-Tax Nominal Interest Rate (%); After-Tax Real Interest Rate (%) GDP would be much higher than it is, but the well-being of the typical person would not necessarily be higher. Kate's factory has low fixed costs and high variable costs. All rights reserved. Become a Study.com member to unlock this answer! Assume that the wage rate is $20. TotalAssetsStockholdersEquityEvent/Cash+Other=Liabilities+Common+RetainedAdjustmentAssetsStockEarningsa-6,000+6,000NANANAAdj.NA-4,500NANA-4,500. Suppose the economy experiences a negative shock to the banking system. PI = NI - Corp earnings + Gov Transfer Payments Gopher Excavators produces shovels in a small factory and sells the shovels in a perfectly competitive market. See answer Advertisement topeadeniran2 You will need to give up your current job that pays you $20,000. Make sure to label both axis and include a dot on the curve that represents our state of economy. Question: Velocity and the quantity equation Consider a simple economy that produces only cell phones. Fill in the missing values in the following . In 2015, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. Show how the event and its related adjusting entry affect the accounting equation. Denim Value+Wine Value + Textbook Value= RGDP REQUIRED Product Quantity Price Quantity Price 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. A break-even level of production. 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. (a). The Inflation rate from 2017 to 2018 was Textbooks 15 90 20 100, Real GDP in 2009 equals $6680. There is no government or foreign trade. Question: Consider a simple economy that produces only cell phones. 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. Consider a simple economy that produces only cell phones. What are consumer goods? The following table contains information on the economy's money supply, velocity of money, price level, and output. The following table shows two scenarios: a low-inflation scenario and a high-inflation scenario. Further, assume that all of the cotton is used, Consider a simple economy that produces only three products: tacos, earplugs, and toothbrushes. c. In the absence, Suppose a firm with a production function given by Q=4K^0.25L^0.75 produces 100 units of output. List 3 factors that can change the economy's potential output. Here are the quantities produced and the prices for pineapples and commercial airplanes. Price \ of \ cell \ phones \ (2012) \ = \ \dfrac{3,780}{500} Pineapples 50,000,000 lbs. A. Understand how to use the inflation rate formula through examples. 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? 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. d) All of the above are correct. 3. Nineteen percent of employers provide a one-day paid holiday with workers off Thanksgiving Day. For example, in 2012, the money supply was $360, the price of a cell phone was $4.50, and the economy produced 800 cell . Consider a simple economy that produces only cell phones. Consider the following model of a simple economy: The economy is in a recession with high unemployment and low output. The value of the multiplier for this economy is 4. 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. c) how many workers to hire. 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. Assume a December 31 closing date. The following table contains information on the economy's money supply, velocity of money, price level, and output. 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. "Whenever real GDP declines, nominal GDP must also decline." a. GDP only counts final goods and services and not intermediate goods. Paul s Pizza Parlor bakes pizza pies according to the following production function: Q = 3L + 0.3L^2 - 5L^3. Find a new equilibrium. Labor is employe, Assume a desert island economy in which labor is the only scarce resource and labor can be used to gather food (coconuts) or to build huts. 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. \\ a. Further, assume that all of the cotton is used in the production of shirts. For example, in 2011, the money s; The equation of exchange Consider a simple economy that produces only cell phones. How. If the GDP deflator in 2012 has a value of 98.0, then. 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. How many workers to hire, b. d. spending and output. Suppose that Home has 100 workers, a marginal product of 4 making apples, and a marginal product of labor of 4 making shirts. Fixed cost is FC = 500 (sunk cost). If the price per unit of the good is $1.9 and labor costs $10 per unit. Identifying costs of inflation Fill in the missing values. DPI = PI - Personal tax payments = 11210 - 1500 = 9710. The following table contains information on the economy's money supply, velocity of money, price level, and output. Price \ of \ cell \ phones \ (2012) \ = \ \$7.56 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 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. 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. In 2015, the economy produces 1,000 tonnes of apples, 2,000 tonnes of oranges, and 3,000 tonnes of bananas. The following table contains information on the economy's money supply, velocity of money, price level, and output. Today, the typical American works fewer than 40 hours per week. This will. The money supply grew at a rate of from 2014 to 2015. Coal production is relatively more capital-intensive and W, The firm's demand for a resource and marginal revenue product. \\ The contract required a one-year commitment starting September 1. B) For what values of labor does increasing marginal product exist? In this economy, equilibrium GDP is ? Derive the short run, Economic theory suggests that as plant size increases, the average cost of production should fall. Money \ supply \ grew \ = \ \dfrac{12}{240} \ \times \ 100 We are interested in possible relationships between age, race, and sex. The marginal product of oranges in one plant is MP^1=1000-O_1, Which of the following could be evidence of a market failure? Suppose that the economy consists of two types of firms: type A firms which produce output using a technology Qa Min 1 3K,L and type B firms which produce output using a technology Qb Min12K,L. 2. What is the per-worker production function? The country has a constant technology, population and capital stock (in other words, real GDP is constant throughout). \hline \text { white, male } & 210 & 3,360 & 13,610 & & 22,050 \\ The company's production f. Suppose the production function for a firm is given by q = 5L0.5K0.25. What he can't spend, he converts into a more stable foreign currency for a steep fee. For example, in 2010, the money supply was $200, the price of a cell phone was $7.50, and the economy produced 400 cell phones. Velocity and the quantity equation Consider a simple economy that produces only pens. \hspace{17pt}\text{Adj.} If th, Suppose that this year's velocity is 10, nominal GDP (PY) is $50 billion, and real GDP (Y) IS $10 billion. Draw the short run Phillips curve and relate it to our economy today. a. The inflation rate from This is an example of the ___________ of inflation. Question Velocity and the quantity equation Consider a simple economy that produces only cell phones. The following table shows the prices and quantities of the goods over a three-year period. For example, in 2017, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens. d. The adjustment to fair value on December 31, 2018, assuming that Eskew, Inc., elected to use the fair value option. GDP deflator = Nominal GDP / Real GDP 100. 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. Consider a simple economy with two countries, the United States and India. \hspace{70pt}\underline{\text{Total Assets}} \hspace{115pt} \underline{\text{Stockholders' Equity}}\\ Suppose there are two closed economies: Economy A and Economy B. Now suppose the Fed unexpectedly increases the growth rate of the money supply, causing the inflation rate to rise unexpectedly from 4% to 6% per year. Product Quantity Price Per Unit In the short run, the firm has 16 units of capital. This country produces both goods (clothing with capital and labor; food with land and labor) and imports food. Corporate earnings 1,250 Fill in the missing values in the Do not include "all others" for parts fff and ggg. Suppose the economy is operating at full-employment and all capital goods are subject to legal price ceilings set below equilibrium, Suppose that capital costs $10 per unit and labour costs $4 per unit. Explain your graph. Take the following information as given for a small, imaginary economy: -When income is $10,000, consumption spending is $6,500. Video Games 900 $30.00 How do you know? You buy an iPad from the Apple Store. Suppose you are deciding whether to spend your tax rebate check on AirPods or save the money for a new smart phone. Question: Consider a simple economy that produces only cell phones.

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