In the economy of Pizzania, bread and cheese produced aresold both to the pizza company for inputs in the production ofBreadCheesePizzacompanycompanycompanypizzas and to consumers as final goods. The accompanyingtable summarizes the activities of the three companies.$50 (bread)Cost of inputs$0$035 (cheese)Wages253075Value of output10060200a. Calculate GDP as the value added in production.400Incorrectb. Calculate GDP as spending on final goods and services.$Incorrectc. Calculate GDP as factor income.$Incorrect%24

In the economy of Pizzania, bread and cheese produced are sold both to the pizza company for inputs in the production of pizzas and to consumers as final goods. The accompanying table summarizes the activities of the three companies. Bread Cheese Pizza company company company $50 (bread) Cost of inputs $0 $0 35 (cheese) Wages 25 30 75 Value of output 100 60 200 a. Calculate GDP as the value added in production. 400 $ Incorrect b. Calculate GDP as spending on final goods and services.

In the economy of Pizzania, bread and cheese produced are sold both to the pizza company for inputs in the production of pizzas and to consumers as final goods. The accompanying table summarizes the activities of the three companies. Bread Cheese Pizza company company company $50 (bread) Cost of inputs $0 $0 35 (cheese) Wages 25 30 75 Value of output 100 60 200 a. Calculate GDP as the value added in production. 400 $ Incorrect b. Calculate GDP as spending on final goods and services.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Similar questions

What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?
As technological change makes us more sedentary and food costs increase, obesity is likely. What factors do you think may limit obesity?
Refer to the diagram to answer the following: a. The movement from point A to point B represents: b. The movement from point B to point C represents: c. The movement from point A to point C represents Real GDP per hour Worked Y/L ($, 000) 1,000 900- 800- 700- 600- 500- 400 200- 100- Aggregate Production 0 ljuds 300-midifi E Tommyformemberit A 8 D 20 40 00 80 Capital per hour worked K/L (5,000) 100 O Q
Define factors of production and describehow they contribute to output.
Use the numbers to calculate Econ Land's Green GDP
PPF Data (same as previous questions) D E Solar Panels 500 400 300 200 100 (1,000s) SUVS (1,000s) 15 22 27 30 Based on the PPF data above what can we say about the economy if it produced 200,000 solar panels and 22.000 SUVs? O The combination is possible but not efficient or not using all of its resources O The economy is more efficient at producing solar panels O The economy is more cfficient at producing SUVS KO The skills of SUV workers are insuifficient to mect demand
Again, please work with the following data set. It describes production of the only three goods made by Economy Zeta, along with their prices, for each of three years. Quantity Price of Quantity of Price of Quantity of Price of of Food Food Energy Energy Shelter Shelter 2018 800 $5 1000 $10 200 $100 2019 850 $6 1100 $12 240 $100 2020 850 $7 1200 $14 300 $100 Year Economists estimate that the average person in this economy consumes 12 units of food, 20 units of energy, and 2 units of shelter over the relevant period. 2018 is the base year. Using the GDP deflator, the inflation rate between 2018 and 2019 for this nation is ______________ percent. (Enter your answer "as a percent, but without the percentage sign." If you think the inflation rate is 99.99 percent, enter only 99.99 in the blank.)
Consider the following table showing the breakdown of GDP (in billions) for China. GDP Category Amount (in billions) Wages and Salaries 1000Consumption 1700Investment 700Depreciation 50Government Expenditure100Taxes 300Exports 50Imports 40Income receipts from rest of the world10Income payment to rest of the world50 What are net exports for China? 4. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions)What is the growth rate of GDP in Japan?Use the following information to answer questions 5 through 15: The tables below show data on prices and quantities of Oranges and Shoes produced in China. Data for 2014Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes0.7 200 10 270Data for 2015Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes0.9 150 14 250Data for 2016Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes1.4 300 15 3305. Given this data, what is the Nominal GDP in 2014?6. What is the Nominal GDP in…
Practice 2 Sovyl Consider the following data on the X-product: 50 GDP deflator year price of X quantity of X Nominal GDP (base year 2005) 2010 $11.50 105,000 125 2011 $11.96 106,000 130 a) What was the growth rate of nominal GDP between 2010 and 2011? b) What was the growth rate of the GDP deflator between 2010 and 2011? c) What was real GDP in 2010 measured in 2005 price? d) What was real GDP in 2011 measured in 2005 price?
a. Consider an economy which produces and sells, among a host of other things, 100 million T‑shirts a year. The average T‑shirt begins life when a farmer plants seeds she put away last year, waters them, and harvests the cotton, then sells the cotton to a mill for $0.75, which sells the fabric to a T‑shirt factory for $1.50, which sells its T‑shirts to a wholesaler for $5, who sells it to Nordstrom for $10, which finally sells it to you for $17. Determine the impact of T‑shirts on annual GDP by calculating the value added of the entire production process. b. Now, calculate the amount spent on T‑shirts in a year if 100 million T‑shirts are sold, each for $17. How does this compare to the amount calculated through the value‑added method?
1:02 ME . O 51% Adobe Scan 01 Oct 2021 (1) Consider an economy that produces and consumes bread and automobiles. In the following table are data for two different years. Year 2000 2010 Price of an automobile $40,000 $50,000 Price of a loaf bread $20 $30 Number of auto-mobiles produced 100 cars 120 cars Number of loaves of bread produced 600,000 loaves 500.000 loaves How much have prices risen between year 2000 and year 2010? Compare answers given by Laspeyres and Passche price indices Share Modify Comment More V
Assume an economy where there are two producers: a wheat producer and a bread producer. In agiven year, the wheat producer grows 3 million tonnes of wheat, of which 2.5 million tonnes aresold to the bread producer at $30 per bushel, and 0.5 million tonnes are stored by the wheatproducer to use as seed for next years crop. The bread producer produces and sells 100 millionloaves of bread to consumers for $3.50 per loaf. Determine GDP in this economy during this yearusing the product and expenditure approaches.