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horsena [70]
3 years ago
9

Categories of expendituresGilberto and Juanita Ivanov live in Swarthmore, PA. Juanita's father, Lorenzo, lives in SwedenFor each

of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption, investment, government purchases, exports, or imports.a. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.b. Lorenzo in Sweden orders a bottle of Vermont maple syrup from the producer's website.c. Gilberto's employer upgrades all of its computer systems using U.S.-made products.d. Juanita gets a new video camera made in the United States.e. Gilberto buys a sweater made in Guatemala
Business
1 answer:
gregori [183]3 years ago
6 0

Answer:

A. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.

The repaving of the highway is part of the U.S. GDP, and the category is government pruchases, or G, because it is the state that is spending the money on repaving the road.

B. Lorenzo in Sweden orders a bottle of Vermont maple syrup from the producer's website.

The bottle of maple syrup is part of the U.S. GDP, in the category of net exports, or XN. Exports are included in GDP because they correspond to goods that were produced domestically, and later sold abroad.

C. Gilberto's employer upgrades all of its computer systems using U.S.-made products.

The U.S. made products to upgrade the computer are part of the U.S. GDP, in the category of consumption, or C. The products were made in the United States, and were purchased by a citizen, not by a government agency, for this reason, the transaction is classified as private consumption.

D. Juanita gets a new video camera made in the United States.

The camera is part of the U.S. GDP, in the category of consumption. This example is the same as above: the camera was made in the United States, and purchased by an American citizen, who lives in the United States.

E. Gilberto buys a sweater made in Guatemala.

The sweater is not part of U.S. GDP because it was not made domestically, it is an import, and imports are not part of GDP.

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4 years ago
Mel is thinking of going on a cruise. Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50. T
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Answer:

Mel

If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.

c. $1,220

Explanation:

a) Data and Calculations:

Mel's value of a cruise in nice weather = $2,000

Mel's value of a cruise in bad weather = $50

Probability of nice weather = 60%

Probability of bad weather = 40%

Expected value:

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Nice weather      $2,000          60%           $1,200

Bad weather            $50           40%               $20

Total expected value of a cruise               $1,220

6 0
3 years ago
Assume you are going to lunch and have a choice of two meals. The first meal would give an increase in marginal utility of 100 w
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Answer:

C) Third

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The first meal gives you 4 units of utility for every dollar spent (= 100 utility / $25).

The second meal gives you 5 units of utility for every dollar spent (= 10 utility / $2).

The third meal gives you 10 units of utility for every dollar spent (= 50 / $5). We should choose the meal that provides us with the greatest utility per dollar.

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Read 2 more answers
Suppose labor's share of output is 60% and capital's share of output is 40%. If labor grows at a rate of 5%, then this will caus
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If capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

Given,

Labor's share of output = 60%

Capital's share of output = 40%

Labor grows on a rate of = 5%

Capital grows on a rate of = 5%

Thus, output will grow at a rate of = ?

SR(t) = Δy/Δt/Y - (αΔk/Δt/k(t) + (1-α)(ΔL/Δt/L(t))

Here, α = 60%

So, labor's share = (1 - 0.6) × 5  = 2%

Capitals contribution = 0.4 × 5  = 2%

Implied rate of growth in technology is also given,

SR = (5) - (2+2)

= 1%

Hence, if capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

To learn more about capital here:

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8 0
1 year ago
Explain how each of the following will affect the net public​ debt, other things being equal. a. ​Previously, the government ope
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Answer:

A. - The net public debt decreases

The net public debt decreases because the government has obtained more funds in tax revenue. For this reason, the government will likely run a budget surplus.

B. - The net public debt increases

The government was already running a budget deficit (albeit a small one). With the effects of the hurricane, the government will have to spend more to help the people affected, and will likely have to borrow even more, increasing its deficit.

C. - The net public debt remains unchanged

There was a transfer of funds from one government agency to the other, and the net effect of such transfer is likely to be very small to make any significant change in the net public debt. The net public debt remains unchanged.

4 0
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