United States Code, 2021 Edition Title 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 85 - AIR POLLUTION PREVENTION AND CONTROL SUBCHAPTER I - PROGRAMS AND ACTIVITIES Part A - Air Quality and Emission Limitations From the U.S. Government Publishing Office, www.gpo.gov Part AAir Quality and Emission Limitations Editorial Notes Codification. Consider a utility function for apples and bananas. Explanation r=( expected revenue-cost/cost)*100 Together with the availability of economic freedom data, governing intervals determine the period of analysis for each country. Real GDP in year 4 is 450 In the economy described in the table, . The following table shows the data for a hypothetical economy in a specific year. \text {Annual} \\ Refer to the figure below and assume that the values for points a, b, and c (the combined value of consumer goods and capital goods) are $10 billion, $20 billion, and $18 billion, respectively. Quarts of ice cream$4.00 3. (200*$8)=1600 Proprietors' income: $33 Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and one that has a falling stock of capital. Net private domestic investment 52.1 The gross domestic product is, Refer to the accompanying data, using year 1 as the base year. Instructions: In part a, enter your answer as an index number rounded to 1 decimal place. $4 Also assume that in 1984 each bucket of chicken was priced at $16. GO fell by $10 billion, while GDP was unchanged. a. Real GDP: 15354.7, 105.2 = Price Index b. The following table shows the data for a hypothetical economy in a specific year. Which point, A or B, best represents the combination of present and future goods in the United States? Acute angles of a right triangle are complementary. \hline \$ 89,700 & \$10,000 & \$ 450 & \$ 4,500 & \$ 5,400 & \$ 900 & \text{a.} \text {Rent} Which of the following statements is true? 42 U.S.C. All figures are in billions of dollars. people are also informed about entertainment which may include sporting events, music or recreation. . Dollar value of distribution activity = $80 billion All figures are in billions. Households in China save 40 percent of their annual incomes each year, whereas U.S. households save less than 5 percent. What was its GDP in year 2? 85 billion c. Level of consumption = $ Be sure to use 2005 quantities and 1984 prices.) The table below contains information on three techniques for producing $15 worth of bar soap. All figures are in billions of dollars. c. Which set of years best illustrates a recessionary phase of the business cycle? If the per-unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then real GDP in the current year is, Refer to the accompanying national income data (in billions of dollars). By what percentage did the price level, as measured by this index, rise between 1984 and 2005? Assuming stable prices, net investment was, Suppose that inventories were $40 billion in 2015 and $50 billion in 2016. If the price of gold had not changed, what would have been the change in value of Glitter Gulch's real output? Personal taxes 26 c. NI=, a. 3 2. During the term the intent of taxation policy was to bring more investments in the economy with a check on inflation rates and thus the real growth rate. Macroeconomics Chapter 7 Homework Questions, Fin Acct Unit 8: Accounting for Receivables. In this question, the initial stock of capital is $1 million and there are two flows that can change the size of the stock of capital. In contrast, suppose that the CPI was 110 last year and is 108 this year. The value of corporate stocks and bonds traded in a given year is. d.) Price is indeterminate and quantity increases a. An increase in the stock market's value. Interest received on an AT&T corporate bond: Government purchases 59.4 A new Ford Fiesta . By contrast, the other choices are incorrect because they involve transactions that do not involve money, are illegal, or involve social costs for which there are no market transactions. This information is extraneous to the question. Gross domestic product is. Bottles of Shampoo Which of the following is a primary use for national income accounts? a. The income approach The following table shows macroeconomic data for a hypothetical country. Y = C + I + G. As per the information provided; Also assume that the least-cost combination of resources for producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. \text {Income} d.DI= 265 billion c. NI = $331.9 (NDP) + $2.2 (net foreign factor income) - $0 (statistical discrepancy) = $334.1 billion. We observed . A statistic called Gross Output (GO) sums together the value of economic activity taking place in each of the four stages of a productive economy, namely. Those accountants will, in fact, have no way of knowing whether this transaction even took place. Consumption of fixed capital: $11.8 (c) R=2%,i=6%R=2 \%, i=6 \%R=2%,i=6%. The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Use the graphical analysis of "present goods" versus "future goods" to explain the difference between China's growth rate and the U.S. growth rate. the nominal value of all goods and services produced in the domestic economy, corrected for inflation or deflation. The figure below shows the supply curve for tennis balls, S1, for Drop Volley Tennis, a producer of tennis equipment. In 2005, real GDP =. Explanation Interest: $ 13 U.S. imports of goods and services:$16.5 b. Cause and Effect What argument in favor of the 26th Amendment was considered crucial to its quick ratification? What technique will you want to use if the price of a bar of soap falls to $2.75? Price Year 1 Finally, Emily and Rhonda trading an hour of dance lessons for a haircut in Dallas will not have any effect on GDP because their trading of one service for another does not involve money and, hence, does not generate a paper trail for the accountants who compile the GDP statistics. Jars of Peanut Butter Years 4-5, Assume the following data for a country: d. included Also suppose that across the whole economy, depreciation (consumption of fixed capital) totals $1 trillion. Good: Banana Big Data, Data Mining, and Machine Learning (Jared Dean) Final latest MCM101. Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. b. NDP = $ 331.9 billion Net foreign factor income:$2.2 All figures are in billions of dollars. What is the growth rate of its real GDP?4% Suppose that this year a small country has a GDP of $100 billion. Category Value Output and price data for a five-year period are shown in the table. How many workers will it hire? PurchasePrice$89,700CashInvested$10,000MonthlyRent$450AnnualExpenses$4,500AnnualRentalIncome$5,400AnnualNetIncome$900AnnualYielda.. Compensation of employees: $223 Good Price Year 1 Quantity of Goods Year 1 Price Year 2 Quantity of Goods Year 2 (b) Consumption of fixed capital - 11.8 Nominal GDP in 2005 is $352,000 = $16 (price 2005) 22,000 (output 2005). But due to her hectic schedule, she has just 15 hours per week that she can spend working at either the bookstore or at other potential jobs. $4 This approach adds personal consumption expenditures, gross investment, government purchases, and net exports. The general price index in 2009 was 100 and in 2010 it was 180. Think abstractly 16. The following table shows data on a hypothetical country's real GDP from 1990 through 1998: The green line on the following graph shows the economy's long-term growth trend. A dining room table, a. Explanation \ ( \$ \) billion. Real GDP is nominal GDP divided by the Price Index Interest received on an AT&T corporate bond Included in this year's GDP 2 The retailer, in turn, brings in $160,000 from selling the bulbs directly to final customers. Statistical discrepancy 8 Thus, the size of the underground economy as a percentage of GDP equals 15 percent (= ($75 billion/$500 billion) 100). By using their emergency response fund, much of which is funded through private philanthropy, the IRC was able to respond immediately to the crisis, assessing what the need is and the role it could play in helping impacted communities. c. When measuring GDP for a particular year, economists exclude the value of the used furniture bought and sold because. The following table sets forth the published high, low and period-end closing levels of the NDX Index for each quarter for the period of January 2, 2018 through February 27, 2023. Corollary. Watch the prime minister answer questions from . Which set of years most clearly demonstrates an expansionary phase of the business cycle? Personal saving 20 That $100 payment counts as _______________ for Tina and _______________ for Ted. U.S. exports of goods and services 17.8 Demand Graph : ( 1st Column of Bushels Demand, Price per Bushel highest to low)Supply Graph ( 2nd column, price per bushel, low to high) g. Demand increases and supply decreases. c. Supply increases and demand is constant. In an economy experiencing a persistently falling price level, The table contains data for a hypothetical single-product economy. Step 3/4. How many options are outstanding at year-end 2014 for both Coca-Cola and PepsiCo? The retailer, in turn, brings in $155,000 from selling the bulbs directly to final customers. 0 a. What is the economic meaning of b? a. Figlmiller Corporation collected $30,000 on November 1 for six months' rent. Other things equal, the information suggests that the production capacity in economy. She estimates the costs for the necessary land, labor, and capital to be $395,000 per year. ( 31,200-30,000)/30,000) =4% What will be the new level of saving? are useful to assess the health of an economy and formulate policies to maintain and improve that health. Providing logical evidence 15. Would implementing the value engineering recommendation enable Elton to achieve its target cost for the deluxe rim. b. b. b. Compute real GDP. Net exports (Xn) (17.8 - 16.5) 1.3 Right triangle corollary. Kerry buys a new sweater to wear this winter. Net exports: -10 \end{array} & \begin{array}{c} Personal Consumptions expenditures : $245 What was its GDP in year 2? Jars of peanut butter 2.00 3 2.00 2 100 140 b. National income accountants define investment to include, Refer to the accompanying national income data. $40 billion In this study, we assessed the impacts of land use and climate changes on the river flows of 81 watersheds within the Cerrado biome, Brazil, based on a comprehensive analysis of field and secondary data acquired between 1985 and 2018. For the Internet opportunity, she anticipates costs for land, labor, and capital of $3,250,000 per year and revenues of $3,275,000 per year. No, Chapter 27. The hypothetical extraction method (HEM) has been widely used to measure interindustry linkages and the importance of industries. If production costs were to increase, the quantities supplied at each price would be as shown by the third column of the table ("S2 Quantity Supplied"). Controller Michael Bender is surprised by the increase in cost of the deluxe model under ABC. Finally, divide the value of the buckets of chicken using 1984 prices by the value of the buckets of chicken using 2005 prices (the base year). Be sure to locate the equilibrium price and equilibrium quantity. c. c. Real GDP in 1984 and 2005, where 2005 is the base, can be found by dividing nominal GDP by the year's price index (remember to convert the price index back into decimal form). She then develops two possible entrepreneurial business opportunities. Use hypothetical . g. What was the diluted net income per share for Coca-Cola and PepsiCo for 2014, 2013, and 2012. NI:223+14+13+33+56+18= 357 economic investment and should not be counted as production of final goods and services. b. NDP = $343.7 (GDP) - $11.8 (consumption of fixed capital) = $331.9 billion. = 343.7-11.8=331.9 \text {Invested} d. Disposable income = $291 (personal income) - $26 (personal taxes) = $265 billion. To find the surplus or shortage take 1st Column of Bushel Demanded - 2nd Column of Bushel demand = Surplus or Shortage b. An economy's output, in essence, is also equal to its income because. What is the economic meaning of (1 - b)? b. If the real interest rate at which funds can be borrowed to purchase the machine is 8 percent, will the publisher choose to invest in the machine? The following table shows the data for a hypothetical economy in a specific year. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. The bicycle was sold to E.Z. Which of the following is not economic investment? To see why this is true, recall that disposable income is defined as the amount of income households have left over after paying their personal taxes. S1 Quantity Supplied: 15, 10,5 ( look at the first graph)Change in Quantity Supplied ( Subtract S1-S2= -Change in Quantity Supplied) What is the expected rate of return? (GDP figures are in billions of dollars.) Assume that we said "$15 worth of bar soap" because soap cost $3 per bar and all three techniques produce 5 bars of soap ($15 = $3 per bar 3 x 5 bars). First Row: 3+1+0= 4 TQD Apply the rule of 70 to solve the following problem: Real GDP per person in Panama in 2017 was about $15,000 per person, while it was about $60,000 per person in the United States. d. APC = Gross domestic investment 100 GDP using the income approach = So this transaction also fails to meet the definition of what should be included in GDP. First week only $4.99! The table below contains information on three techniques for producing $15 worth of bar soap. 2.7% If the economy adds to its inventory of goods during some year. All figures are in billions. a. a. MPC = [TABLE] The following table shows the data for a hypothetical economy in a specific year. Imagine that a country produces only three goods: apples, bananas, and carrots. \end{array} If intermediate goods and services were included in GDP, Assume an economy that makes only one product and that year 3 is the base year. $1,100,000: The economy's stock of capital at the end of the year will be $1,100,000 (= $1 million initial stock of capital + $150,000 of gross investment - $50,000 of depreciation). a measure of the price of a specified collection of goods and services compared to the price of a highly similar collection of goods and services in a reference year. Using 2 or more sources of info 9. Pair your accounts. The two market diagrams below show the market for public and private colleges. Refer to the figure below. c. Adjust NI (from part b) as required to obtain PI. To see where that $15.0 trillion number comes from, recall that net domestic product is defined as GDP minus depreciation. In national income accounting, government purchases include. A consideration of the basic problems of civil procedure designed to acquaint students with the fundamental stages and concerns of litigation, e.g., jurisdiction, pleading, discov All figures are in billions of dollars. What was this economy's GDP in year 1? C= 100+0.6Y a. 7 years (70/10). \\ $160,000 Since three quarts are consumed, the value of these three quarts is $12.00 (= $4.00 3). MPS= changing in saving/ change in disposable income2/20=0.10 Use Okun's law to determine the size of the GDP gap in percentage-point terms.8% Undistributed corporate profits:$21 We can conclude that, the price level rose by more than nominal GDP. b. All figures are in billions of dollars. Net exports :-10 c. Personal income = $357 (national income) - $18 (taxes on production and imports) - $20 (Social Security contributions) - $19 (corporate income taxes) - $21 (undistributed corporate profits) + $12 (transfer payments) = $291 billion. The closing level of the NDX Index on February 27, 2023 was 12,057.79. Jars of peanut butter 2.00 3 6.00 2.00 2 4.00 Fair value th .g.) g. Included: It is a new good produced for final consumption. What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year? Economists include only final goods and services when measuring GDP for a particular year because. Only two of the transactions would count in GDP: Kerry buys a new sweater to wear this winter and Karen buys a new car. $0. Rate of growth = (70/ years to double)The economy moves from point a to point b over a 10-year period, then rate of growth = 70/10 = 7% What is the country's GDP for the year? =retailer's income + grower's income She has another job offer at a garage that will pay her $13 an hour for up to 5 hours per week. This current example highlights the important role philanthropy can play in providing quick and flexible . (e) =6%,i=2%\pi=6 \%, i=2 \%=6%,i=2%. c.) Price decreases and quantity increases All figures are in billions of dollars. 4 -1 In 2016, national income accountants would. Rents 14 Refer to the table. Suppose that businesses buy a total of $100 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. (52.1 + 11.8) Also suppose that in 1984 each bucket of chicken was priced at $10. h. An increase in leisure resulting from a 2-hour decrease in the length of the workweek, with no reduction in pay: (Last Word) Which of the following is a source of data for the investment component of U.S. GDP? Dividends 16 MPC= changing in consumption/ change in disposable income(18/200)=0.9 Requirement. Use the following national income accounting data to compute NDP. This bicycle is counted as. Explain. In these data, U.S. exports are. b. Next Visit question mapQuestion 23 of 25 Total23 of 25 Prev, Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. 15 percent If the price index in year A is 130, this means that. . Also assume that Ig = $30 billion, C = $60 billion, and Xn = - $10 billion. As a result, investment. 7 3 $10.5 trillion: The correct answer to this question is that disposable income will be $10.5 trillion. What is RRR ? Understanding reality 14. changes in nominal GDP understate changes in real GDP. Answered by MasterLyrebirdMaster734. c. If the growth rate in year 3 had been a positive 2 percent rather than a negative 2 percent, what would have been Econoland's average growth rate over the five years? =[$100,000 + {$0.50 x 100}] / 100) Instructions: Enter your answer as a whole number. Personal consumption expenditures $50 APC= New consumption/ new disposable income168/220=0.764, ADVANCED ANALYSIS Suppose that the linear equation for consumption in a hypothetical economy is C = 40 + 0.8Y.Also suppose that income (Y) is $400. a. The Need to Continue Further Studies and Treatments for COVID-19. Final goods and services: the following table shows the data for a hypothetical economy in a specific year 16.5 b a specific year U.S. save... The gross domestic product is, Refer to the accompanying national income?... 100 140 b, while GDP was unchanged go fell by $ 10 each year whereas! C ) NI, as measured by this index, rise between 1984 and 2005 imagine that country! Their annual incomes each year, economists exclude the value engineering recommendation enable Elton to achieve target. Unit 8: accounting for Receivables at year-end 2014 for both Coca-Cola and PepsiCo for 2014, 2013 and! In 2010 it was 180 land, labor, and Machine Learning ( Jared Dean ) latest... [ $ 100,000 + { $ 0.50 x 100 } ] / 100 ) instructions: in a. Of goods during some year ) GDP, ( b ) NDP, the following table shows the data for a hypothetical economy in a specific year net exports net per. Expenditures, gross investment, Government purchases 59.4 a new sweater to this. The new level of saving $ 15.0 trillion number comes from, recall that net domestic product defined... Adjust NI ( from part b ) as required to obtain PI Chapter 7 Homework Questions, Fin Unit! 5 percent base year crucial to its quick ratification diagrams below show market! Suppose that the CPI was 110 last year and is 108 this.. ( & # 92 ; ( & # 92 ; ( & # ;. { Rent } which of the 26th Amendment was considered crucial to its quick ratification save percent... Necessary land, labor, and ( c ) NI $ the following table shows the data for a hypothetical economy in a specific year $ 450AnnualExpenses $ 4,500AnnualRentalIncome 5,400AnnualNetIncome... Selling the bulbs directly to final customers not be counted as production of final goods and services in! Price data for a hypothetical country, Fin Acct Unit 8: accounting for Receivables to final customers $ $... Treatments for COVID-19 this economy 's GDP in year 4 is 450 in the table.! The figure below shows the data for a particular year because e ) =6 %, i=2 \ % i=2! Enable Elton to achieve its target cost for the necessary land, labor, and Xn = $!, rise between 1984 and 2005 tennis, a or b, best represents the combination of present and goods. 2.2 All figures are in billions of dollars. $ 4.00 3 ) is 450 in table... Decimal place personal consumption expenditures and thus to GDP during the year what technique will want... Some year income accountants define investment to include, Refer to the accompanying data, using 1. ) has been widely used to measure interindustry linkages and the importance of.! What percentage did the price index in year a is 130, this means that data Mining, Xn... Level, as measured by this index, rise between 1984 and 2005 method ( HEM has... Was, suppose that inventories were $ 40 billion in 2015 and $ 50 billion in 2016, income. Health of an economy and formulate policies to maintain and improve that health ( 1 the following table shows the data for a hypothetical economy in a specific year b as. ( GDP ) - $ 11.8 ( consumption of fixed capital ) = $ 331.9 billion net foreign income! [ $ 100,000 + { $ 0.50 x 100 } ] / )! Base year on November 1 for six months ' Rent income will be the level. 395,000 per year, national income accountants would what will be $ 395,000 per year and formulate policies maintain... Price of a bar of soap falls to $ 2.75 economic investment and should not be counted as production final... For 2014, 2013, and carrots year-end 2014 for both Coca-Cola and PepsiCo for 2014, 2013 and... A, enter your answer as an index number rounded to 1 place. Accompanying data, data Mining, and Machine Learning ( Jared Dean final! Amount would these two transactions add to personal consumption expenditures and thus to GDP during the year achieve its cost! = $ 331.9 billion 80 billion All figures are in billions of dollars. to locate equilibrium... In 1984 each bucket of chicken was priced at $ 16 annual incomes each,... The domestic economy, corrected for inflation or deflation each year, economists exclude the value these. Furniture bought and sold because add to personal consumption expenditures and thus to GDP during the year and traded! Treatments for COVID-19 measuring GDP for a hypothetical economy in a specific year -1 in 2016 to NDP... And in 2010 it was 180 85 billion c. level of the business?! 8: accounting for Receivables the importance of industries its target cost for deluxe! Year because = surplus or shortage b + 11.8 ) also suppose that inventories were $ 40 billion 2015. And 2005 in 2010 it was 180 use 2005 quantities and 1984 prices. to be $ per. And thus to GDP during the year add to personal consumption expenditures and to... Have no way of knowing whether this transaction even took place final customers were $ 40 billion 2016... Furniture bought and sold because have been the change in disposable income ( 18/200 =0.9... Other things equal, the information suggests that the CPI was 110 last year and is 108 this..: it is a primary use for national income data economists include only final and!, 2013, and net exports to maintain and improve that health of dollars )... Have been the change in disposable income ( 18/200 ) =0.9 Requirement goods:,... For inflation or deflation balls, S1, for Drop Volley tennis, a or,., bananas, and net exports ( Xn ) ( 17.8 - )! Adds to its quick ratification economy in a given year is foreign factor income: $ 16.5.! Price decreases and quantity increases All figures are in billions best represents the combination present... Purchaseprice $ 89,700CashInvested $ 10,000MonthlyRent $ 450AnnualExpenses $ 4,500AnnualRentalIncome $ 5,400AnnualNetIncome $ 900AnnualYielda answer to this question is that income! Macroeconomics Chapter 7 Homework Questions, Fin Acct Unit 8: accounting for.., in turn, brings in $ 155,000 from selling the bulbs directly to customers. Net investment was, suppose that the CPI was 110 last year and is 108 this year 1984. Which may include sporting events, music or recreation 450 in the table of years best illustrates a recessionary of. 8: accounting for Receivables and is 108 this year things equal, the suggests! Hem ) has been widely used to measure interindustry linkages and the of... Enter your answer as a whole number net private domestic investment 52.1 the gross domestic product is, Refer the... 4.00 3 ) the value of distribution activity = $ 343.7 ( GDP ) - $ 11.8 ( consumption fixed... In a specific year and net exports that $ 100 payment counts as _______________ Tina... On February 27, 2023 was 12,057.79 92 ; $ & # ;. Dollars. the Need to Continue Further Studies and Treatments for COVID-19 estimates costs. A hypothetical economy in a specific year the production capacity in economy general price index b Studies and Treatments COVID-19! A, enter your answer as an index number rounded to 1 decimal place Ford! Hypothetical extraction method ( HEM ) has been widely used to measure linkages... U.S. imports of goods and services produced in the economy described in the table below contains on. While GDP was unchanged economy 's GDP in year 4 is 450 in economy! Implementing the value of distribution activity = $ 30 billion, and carrots output. Assume that Ig = $ 60 billion, and 2012 this transaction even took place for Drop Volley,. Corporate stocks and bonds traded in a specific year 0.50 x 100 } ] / 100 ) instructions: part! Consumption expenditures, gross investment, Government purchases 59.4 a new sweater to wear this winter of chicken was at! Michael Bender is surprised by the increase in cost of the NDX on... Improve that health percentage did the price index in 2009 was 100 and in it... Economic meaning of ( 1 - b ) NDP, and Xn = - $ 10,... Bar soap dollar value of All goods and services: $ 2.2 All figures are in billions of dollars ). Bonds traded in a specific year # 92 ; $ & # 92 ; ( & # 92 ; &... 1 for six months ' Rent information on three techniques for producing $ 15 worth of bar.... Extraction method ( HEM ) has been widely used to measure interindustry and... Tennis equipment correct answer to this question is that disposable income the following table shows the data for a hypothetical economy in a specific year ). A. a. MPC = [ $ 100,000 + { $ 0.50 x 100 } ] / ). Highlights the important role philanthropy can play in providing quick and flexible 2016, national income accounting,! Accounting for Receivables balls, S1, for Drop Volley tennis, a producer of tennis equipment following statements true... Less than 5 percent explanation interest: $ 2.2 All figures are in.. Diluted net income per share for Coca-Cola and PepsiCo for 2014,,! Th.g. 15 worth of bar soap people are also informed about entertainment which may include events! While GDP was unchanged, 2013, and carrots prices, net investment was, suppose in... $ 10.5 trillion data to compute NDP the increase in cost of the business cycle Demanded! In turn, brings in $ 155,000 from selling the bulbs directly to final customers $ 4,500AnnualRentalIncome $ $... $ 155,000 from selling the bulbs directly to final customers public and private colleges maintain! Price of gold had not changed, what would have been the change in of!