Use the figure below to answer the following questions. Household expenditure (thousands of dollars per year) 32- 4 24 16 8 24 32 40 Household income (thousands of dollars per year) 0 8 16
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- A B C E K L M N A common perception is that airline profits are strongly correlated with the price of oil. The Following are annual net incomes of American Airlines together with the approximate price of oil in the period 2005-2010: 3 a. Populate the table American Net Income (S million) (y) Barrel Oil ($) Year ху (x) 4. 5. 1 2005 56 -850 6 2006 63 250 7. 3 2007 67 450 8. 4 2008 92 -2100 2009 54 -1450 10 6. 2010 71 -700 11 12 13 14 b. What is Ex? 15 16 c. What is Ey 17 18 d. What is n? 19 20 e. What is Exy 21 22 £. What is (Ex²) 23 24 g. What is (Ex) 25 26 h. Obtain a regression line (obtain the coefficients) showing American's net income as a function of the price of oil 27 28 29 30 31 32 i. Obtain the coefficient of correlation r 33 34 35 Use the data analysis tool in Excel to obtain the coefficients in part 1(h). Copy and Paste your regression output 37 below. 36 38 39Activity 2: Taxes and Salary are related to one another when it come to purchasing power which affect entrpreneurs, diagram presented this relationship, explain briefly. SALARY TAXES1. What relationship does the income expenditure model represent? Why is it used?
- The table below gives the price and consumption (usage/sales) for two products xand yfor four years. Using year 2000 as the base year calculate for each year, thea) Basic expenditure index b) Laspeyers price index, and c) Paasche price index5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Amount Spent Price Price Amount Price Amoun Amount Price Spent t Spent Spent Apples Bananas $0.50 $0.20 $0.65 $2.00 10 $0.75 $0.25 $0.70 $0.85 $0.25 $0.90 2.05 $0.88 $0.29 $0.95 12 Grapes Raspberries 1 Total Price Index Inflation 2. 1.9 2.13 Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004. Who in an economy is the big winner from inflation and why?Using the following equation calculate the equilibrium income C=100 + 0.5Y G-500 1-600 Export=60 Imports =75 Select one: 0a None of the above O6 2430 Cc 1215. d. 2370
- National Income DeterminationThe following figures are from data on Good Island EconomyItems $mNet private investment 940Depreciation 56Compensation of employees 2 256Corporate taxes 416Personal taxes 756Personal Consumption expenditure 4 386Government purchases 3 182Indirect business taxes minus subsidies 482Payment of factor income to the rest of the world 95Corporate profits minus dividends 56Government transfer payments and interest 243Exports 855Receipts of factor income from abroad 186Imports of goods and services 385Social insurance payments 332 Required: Use the above information to answer the followingi.) Calculate for Good Island:a. Gross private investment b. Gross Domestic product c. Gross National Product d. Net National Product e. National income f. Personal Income g. Disposable Personal Income14) Calculate the real change in the income in $. A B C D 1 An iron mining company sells three grades of to its customers. 2 Per ton prices (S) of these grades and tons produced are shown below for 2016 and 2017. 3 2016 2017 5 6 7 Grade Notations 1. 8 9 Total IL IIL Price 5 B 10 Quantity go 3000 2000 2000 give min. 1 decimal and do not use sign, e.g.125.3 Price p1 8 10 12 E Quantity 4000 2000 3500 FThe Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales volume appears to be affected by changes in the price of the planes and by the state of the economy as measured by consumers' disposable personal income. The following data pertaining to Reliable's aircraft sales, selling prices, and consumers' personal income were collected: Year AIRCRAFT SALES AVERAGE PRICE DISPOSABLE PERSONAL INCOME 2006 525 $17,200 $610 2007 450 8,000 610 2008 400 8,000 590 Present your results in the form of a short report (maximum 1500 words) with the following elements: 1- A brief introduction to report. This should include an indication of the form of the model used, including the expected signs of the coefficients for each variable (use quality academic resources in this area, why do you think these factors affect the den 2- An analysis of each variable in the model. This should include: function). An interpretation of each estimated coefficient A…
- Question 2 The Personal Consumption Expenditures Price Index (PCEPI) is design to reflect Oonly prices faced by consumers in their purchases with discretionary income O only prices faced by consumers for essential goods and services Oonly prices faced by consumers for personal entertainment all prices faced by consumersOne day, Barry the Barber, Inc., collects $400 for haircuts. $50 is the cost of operation, which includes utilities, shampoos, shaving cream, etc. Over the course of this day, his equipment depreciates by $20. Barry thinks $220 is what he could have earned working as a barber in other shops. Barry would owe the US government $30 in taxes based on this day’s income. Compute Barry’s contribution to the following measures of income on that day. (a) gross domestic product (b) national income (c) compensation for capital (d) disposable incomeGo to this website (http://www.measuringworth.com/ppowerus/) for the Purchasing Power Calculator at measuringWorth.com. How much money would it take today to purchase what one dollar would have bought in the year of your birth?
