Answer:
Euphoria produces 12 million bushels of corn and 16 million pairs of jeans
Euphoria's opportunity cost of producing 1 bushel of corn is 1/4 pair of jeans
Euphoria's opportunity cost of producing 1 pair of jeans is 4 bushels of corn
Euphoria will produce only jeans, total production 64 million pairs of jeans. The total production of jeans between the two countries increased by 12 million per week.
Contente produces 6 million bushels of corn and 36 million pairs of jeans
Contente's opportunity cost of producing 1 bushel of corn is 1/2 pair of jeans
Contente's opportunity cost of producing 1 pair of jeans is 1/2 bushels of corn
Contente will produce only corn, total production 24 million bushels.
The total production of corn between the two countries increased by 6 million bushels.
Contente trades 14 million bushels of corn for 42 million pairs of jeans from Euphoria:
- Contente's gain = 42 - (14 x 1/2 = 7) = 35 million pairs of jeans
- Euphoria's gain = 14 - (42 x 1/4 = 10.5) = 3.5 million bushels of corn
Consumption with or without trade:
- Contente ⇒ with trade 10 million bushels of corn and 42 million pairs of jeans. Without trade 6 million bushels of corn and 36 million pairs of jeans. Total gain = 4 million bushels of corn and 6 million pairs of jeans.
- Euphoria ⇒ with trade 14 million bushels of corn and 22 million pairs of jeans. Without trade 12 million bushels of corn and 16 million pairs of jeans. Total gain = 2 million bushels of corn and 6 million pairs of jeans.
Answer:
The correct words for the blank spaces are: Government purchases; Government Expenditures.
Explanation:
Government purchases refer to the expenses the central government incurs in federal, state, and local agencies. These purchases represent part of the <em>Gross Domestic Product</em> (GDP) of the country considering transfer payments are not including in these expenditures.
When the transfer payments are added to the government purchases the result represents the Government Expenditures. It is one of the factors of the GDP along with private investments, individuals' consumption, and net exports (exports minus imports).
Answer:
- <em><u>The CPI for the current year is 104.49 </u></em>
<em><u /></em>
Explanation:
A) Expenditure breakdown of the base year:
You must check that they add 100%
- Food and beverages: 17.8%
- Other goods, and services: 5.8%
Total: 17.8 + 42.8 + 6.3 + 17.2 + 5.7 + 4.4 + 5.8 = 100
Thus, the CPI of the base year is 100.
<u>B. Expenditure breakdown of the current year.</u>
Calculate the changes by adding the percent of increase to each item tha has changed.
1. <u>The prices of food and beverages have increased by 10 percent</u>:
2.<u> The price of housing has increased by 5 percent</u>:
3. <u>The price of medical care has increased by 10 percent</u>:
The other prices are unchanged.
Then, the new breakdown is:
- Food and beverages: 19.58%
- Other goods, and services: 5.8%
Of course the new total is not 100%.
- 19.58 + 44.94 + 6.3 + 17.2 + 6.27 + 4.4 + 5.8 = 104.49
That means that the price of the total basket of products has increased from 100 to 104.49.
Thus, <u>the CPI of the current year is 104.49 ← answer</u>
Miscavage corporation has two divisions,
The Net Operating Income:
Sales
Less: Variable Cost
Contribution:
Less: traceable Fixed Expenses:
Less: Fixed Expenses:
Net Operating Income:
