What components of gross domestic product (GDP), if any, would each of the following transactions affect?...
- What components of gross domestic product (GDP), if any, would each of the following transactions affect? Explain.
- Jane buys an imported DVD player. (4 marks)
- A local computer firm sells 500 notebook computers from its inventory. (4 marks)
(iii) John buys a new house. (3 marks)
- The Comprehensive Social Security Assistance (CSSA) in Hong Kong is adjusted each year according to the CPI. Most economists believe that CPI always overstates the actual inflation. Given the economists' view is valid, discuss whether the CSSA adjustment provide the elderly with an improvement of living standard
- if the elderly consume the same basket of goods and services as other people.
(5 marks)
- if the elderly consume more health care goods and services than other people and the health care costs have risen more than the inflation rate. (5 marks)
- Discuss ONE reason why CPI cannot perfectly measure the cost of living. (4 marks)
Homework Answers
(a) Consumption increases because Jane buys DVD player . And imports increases because it is not a domestic production. As a result, GDP would be unaffected.
(b) Consumption increases because computers is a good purchased by households and Investment decreases because inventory reduces. As a result, GDP would be unaffected.
(c) Buying a new house is an investment .This would increase GDP.
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What components of gross domestic product (GDP), if any, would
each of the following transactions affect?...
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please help me to answer all quations
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Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Government Purchases Net Exports Consumption Investment Transaction Uncle Henry buys a new refrigerator from a domestic manufacturer. Aunt Jane buys a new house from a local builder. The Jackson family buys an old Victorian house from the Walker family. You pay a hairdresser for a haircut. Ford sells a Mustang from its inventory to the Martinez family. Ford manufactures a Focus and...
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Fed buys bonds in the open market influence the money supply it create money, they create wealth. ey supply of Hooba is $10,000 in a pl the money supply if they hold all depoits in reserve it the Banks cannot rnsl As banks create decreases the reserve requirement to 10 percest, the If Hooba could increase by no more than $9,000.e n u CHOICE QUESTIONS (1.5 marks banking system. percest, the money supply Per Question, 30 in total) (1) Which...
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(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
please help me to answer all quations
write all the answers on the answer sheet) I multiple choices (10 points, 1 point for each question) 1. Which of the following is included in GDP?( A the production that you hire someone to mow your lawn B the production that you mow your own lawn C the production that you produce goods and services abroad 2. In the GDP accounting, investment the purchases of bonds B the purchases of stocks C...
Q1 Which of the following are included and which are excluded in calculating this year's GDP. Explain in each instance. a. A monthly scholarship cheque received by an economics student b. The purchase of an almost new tractor by farmer Kojo C. The cashing in of a savings bond d. An increase in business inventories e. Tim Horton's purchases a corner grocery store f. Fearless Qweenie Kong, a stuntwoman, purchases a life insurance policy for a billion dollars ($) g....
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