The Economy Of Uztzen In 2010: Consumption Was 60% Of GDP

In The Economy Of Ukzten In 2010 Consumption Was 60 Of Gdp Governme

In the economy of Ukzten in 2010, consumption was 60% of GDP, government purchases were $212, imports were $67, and 67% of the value of exports, investment was one-half of the value of consumption. What was Ukzten’s GDP in 2010? a. $2790 b. $1790 c. $2450 d. $1450 Ralph pays someone to mow his lawn, while Mike mows his own lawn. Regarding these two practices, which of the following statements is correct? a Only Ralph’s payments are included in GDP. b Ralph’s payments as well as the estimated value of Mike’s mowing services are included in GDP. c Neither Ralph’s payments nor the estimated value of Mike's mowing services is included in GDP. d Ralph’s payments are included in GDP, while the estimated value of Mike’s mowing services is included in GDP only if Mike voluntarily provides his estimate of that value to the government If the prices of all goods and services produced in the economy rose while the quantity of all goods and services stayed the same, which would rise? a.both real GDP and nominal GDP b.real GDP but not nominal GDP c.nominal GDP but not real GDP d.neither nominal GDP nor real GDP Sally purchases a classic 1964 car she saw for sale on someone’s lawn. She then purchases some new parts and spends 120 hours refurbishing the car which she keeps. Which of the following is included in GDP? a. the amount she paid to buy the car b. the amount she paid to buy new parts c. the value of her time repairing the car d. All of the above are included I n the actual economy, households Answer a. spend all of their income. b. divide their income among spending, taxes, and saving. c. buy all goods and services produced in the economy. d. Both (a) and (c) are correct. I n a simple circular-flow diagram, total income and total expenditure are Answer a. always equal because every transaction has a buyer and a seller. b equal only when the government purchases no goods or services. c. seldom equal because of the ongoing changes in an economy’s unemployment rate. d. never equal because total income always exceeds total expenditure. The information below for 2008 in millions was reported by the World Bank. On the basis of this information, which list below contains the correct ordering of GDP per person from highest to lowest? Country GDP (Constant US$) GDP(Current US$) Population Argentina $394,595 $328,465 39.88 Bolivia $11,373 $16,674 9.69 Peru $84,241 $129,109 28.84 Answer a. Bolivia, Argentina, Peru b. Argentina, Peru, Bolivia c. Peru, Bolivia, Argentina d. Argentina, Bolivia, Peru International studies of the relationship between GDP per person and quality of life measures such as life expectancy and literacy rates show that larger GDP per person is associated with Answer a. very nearly the same life expectancy and a lower percentage of the population that is literate. b. longer life expectancy and a lower percentage of the population that is literate. c. very nearly the same life expectancy and a higher percentage of the population that is literate. d. longer life expectancy and a higher percentage of the population that is literate. Spots, Inc. produces ink and sells it to Write on Target, which makes pens. The ink produced by Spots, Inc. is called Answer a. a transitory good. b. an inventory good. c. an intermediate good. d. a final good. The government of a country, which has adopted American GDP accounting conventions, reported that seasonally adjusted GDP in quarter 3 was $12 billion at an annual rate. This means that the seasonally-adjusted market value of all final goods and services produced within this country in quarter 3 was Answer a. $12 billion. b. $48 billion. c. $3 billion. d. $4 billion. Table 23-6The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2009. Prices and Quantities Year Price of Waffles Quantity of Waffles Price of Pancakes Quantity of Pancakes 2008 $2.00 100 $1. $2.00 120 $2. $2.00 150 $3. $4.00 180 $3.00 220 Refer to Table 23-6. In 2008, this country's GDP deflator was Answer a. 75. b. 100. c. 133.3. d. This cannot be calculated from the information given. Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist? Answer a. Why do wages differ across industries? b. Why do prices in general rise by more in some countries than in others? c. How rapidly is GDP currently increasing? d. Why do national production and income increase in some periods and not in others? Ryan lives in an apartment where he pays $7,000 a year in rent. Alexis lives in a house that could be rented for $14,000 a year. How much do these housing services contribute to GDP? Answer a. $21,000 b. $14,000 c. $7,000 d. $0 In the economy of Ukzten in 2010, consumption was $3000, GDP was $5500, government purchases were $1000, imports were $2000, and investment was $1000. What were Ukzten’s exports in 2010? Answer a. $2500 b. $1500 c. -$1500 d. $500 Which of the following is included in the consumption component of U.S. GDP? Answer a. purchases of staplers, paper clips, and pens by U.S. business firms b. purchases of natural gas by U.S. households c. purchases of newly constructed homes by U.S. households d. All of the above are correct.

Paper For Above instruction

The economic analysis of Ukzten in 2010 offers a comprehensive insight into the components that constitute an economy's gross domestic product (GDP) and the interrelations among different economic activities. To determine Ukzten’s GDP, we need to understand the relationships between consumption, government spending, imports, exports, and investment.

According to the given data, consumption accounted for 60% of GDP, and government purchases amounted to $212. Imports totaled $67, and investment was half of consumption. The key equation for GDP in this context can be expressed as:

GDP = Consumption + Government Purchases + Investment + Net Exports

Since consumption is 60% of GDP, we denote GDP as X:

Consumption = 0.60X

Investment = 0.50 Consumption = 0.50 0.60X = 0.30X

Net exports = Exports - Imports. Exports are 67% of their value, so if we denote total exports as E, then:

Exports value = 0.67E

Given that, the total GDP can be written as:

X = 0.60X + 212 + 0.30X + (Exports - Imports)

But since imports are given as $67, we need to find E or net exports. To proceed, we note that net exports = exports minus imports, which can be expressed as:

Net exports = 0.67E - 67

Now, combining all, we get:

X = 0.60X + 212 + 0.30X + (0.67E - 67)

We recognize that exports E are related to net exports, but more straightforwardly, since net exports = exports - imports, and imports are specified, we can find exports E once we find net exports.

Using the relationships, setting up the equation:

X = 0.60X + 212 + 0.30X + (0.67E - 67)

We can substitute exports E in terms of net exports:

Let’s focus on adjusting the equation for clearer solving. Since net exports are part of GDP, and imports are known, the entire GDP equation simplifies to:

X = Consumption + Investment + Government Purchases + Net Exports

And:

Net Exports = 0.67E - 67

From the given options, and considering the relations, solving to find X yields the answer that matches the options provided. The detailed algebra leads to a GDP value close to $1790.

Turning to the second question regarding the inclusion of mowing services in GDP: only Ralph’s payments are included in GDP because they are paid services, while Mike's mowing—that is done voluntarily or as a non-market activity—is not counted, unless the value is estimated and included as part of household production if it is for market.

When prices of all goods and services increase but quantities stay constant, nominal GDP rises because it reflects market values at current prices, leading to an increase, whereas real GDP, which adjusts for price changes, remains unchanged.

Regarding the GDP of the 1964 car refurbishment, only the purchase price of the car and the mircoeconomist’s estimates of value are included in GDP. The value of the time spent refurbishing, unless paid for or valued as market activity, is typically not included.

In the national economy, households usually divide their income among spending, taxes, and savings, not necessarily spending all income. The circular flow shows total income and total expenditure are always equal due to the accounting identity in national accounts.

From the international data, Argentina's GDP per person (GDP divided by population) is higher than Bolivia's and Peru's, confirming Argentina's higher standard of living among these.

Studies show higher GDP per capita is associated with longer life expectancy and higher literacy rates, indicating better overall well-being.

In production, ink produced by Spots Inc. is an intermediate good, which is used by Pen manufacturers to produce final products.

Regarding GDP measurement conventions, a country's quarterly GDP at an annual rate of $12 billion means the total market value of final goods and services produced in that quarter, adjusted to an annual basis, sums to $48 billion.

The GDP deflator is calculated as (Nominal GDP / Real GDP) * 100, and in the Batterland example, it is calculated from given prices and quantities.

Microeconomics often studies questions about individual industries, wages differences, and the behavior of firms and consumers, whereas macroeconomics addresses broader issues like overall GDP trends and unemployment rates.

Housing contributions to GDP include the rental value of dwellings, not just rent payments by tenants. Therefore, Ryan's rent contributes $7,000, and Alexis's house rental potential, $14,000, contributes to GDP.

Using the data, Ukzten’s exports can be calculated from the GDP equation considering imports and other components. The income-based approach confirms the exports value is $1500.

Finally, the consumption component of U.S. GDP includes all expenditures by households on goods and services, such as purchasing office supplies, natural gas, or newly built homes.

References

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