Question

my 2 Subtitle Subtle Em Emphasis Paragraph Styles 1. GDP is defined as the a value of all goods and services produced within a country in a given period of time. b. value of all goods and services produced by the citizens of a country, regardless of where they are living in a given period of time. value of all final goods and services produced within a country in a given period of time. value of all final goods and services produced by the citizens of a country, regardless of where they are living in a given period of time. 2. Suppose the world price of a television is $300. Before Paraguay allowed trade in televisions, the price of a television in Paraguay was $350. Once Paraguay began allowing trade in televisions with other countries, Paraguay began a exporting televisions and the price of a television in Paraguay decreased to $300 b, importing televisions and the price of a television in Paraguay remained at $350. importing televisions and the price of a television in Paraguay decreased to $300. d exporting televisions and the price of a television in Paraguay remained at $350. 3. In a simple circular-flow diagram of the economy, firms a. purchase factors of production from households. b. purchase the output produced by households c oceive income by selling factors of production to households. d. All of the above are correct. 4. When a country allows trade and becomes an importer of a good, a. both domestic producers and domestic consumers become better off b. domestic producers become better off, and domestic consumers become worse of c. domestic producers become worse off, and domestic consumers become better off d. both domestic producers and domestic consumers become worse off 5. Suppose an economy produces only burgers and bags of fries. In 2010, 4000 burgers are sold at $3 each and 6000 bags of fires are sold at $1.50 each. In 2008, the base year, burgers were sold for $2.50 each and bags of fries sold for $2 each a nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 95.45. b. nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 104.77. c. nominal GDP is $21,000, real GDP is $22.000, and the GDP deflator is 95.45. d. nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 104.77.

Answer 1

Ans) 1) When world price is below domestic price, country imports goods. This harms domestic producers while it benefits the consumers. Because consumers are paying less than before and producers are getting less than before.

2) GDP is value of all finished goods and services produced in a country. Nominal gdp is value of all finished goods and services at current prices. While real gdp is final value of hood and services adjusted for inflation.

GDP deflator = (nominal gdp/real gdp) ×100

Nominal gdp = (current price of good 1 × quantity of good 1) + (current price of good 2 × quantity of good 2) = (4000×3)+(6000×1.5) = 12000 + 9000 = 21,000

Real GDP = (price of good 1 in base year × quantity in current year) + (price of good 2 in base year × quantity in current year) = (4000×2.50) + (6000×2) = 10,000 + 12,000 = 22,000

GDP deflator = (21,000/22,000)×100 = 95.45.

my 2 Subtitle Subtle Em Emphasis Paragraph Styles 1. GDP is defined as the a value of all goods and services produced within a country in a given period of time. b. value of all goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time. value of all final goods and services produced within a country in a given period of time. d. value of all final goods and services produced by the citizens of a country, regardless of where they are living in a given period of time. 2. Suppose the world price of a television is $300. Before Paraguay allowed trade in televisions, the price of a television in Paraguay was $350. Once Paraguay began allowing trade in televisions with other countries, Paraguay began a exporting televisions and the price of a television in Paraguay decreased to $300 b, importing televisions and the price of a television in Paraguay remained at $350. importing televisions and the price of a television in Paraguay decreased to $300. exporting televisions and the price of a television in Paraguay remained at $350. 3. In a simple circular-flow diagram of the economy, firms (a.purchase factors of production from households. 6. purchase the output produced by households c oceive income by selling factors of production to households. d. All of the above are correct. 4. When a country allows trade and becomes an importer of a good, a, both domestic producers and domestic consumers become better off b. domestic producers become better off, and domestic consumers become worse off Homestic producers become worse off, and domestic consumers become better off. d. both domestic producers and domestic consumers become worse off 5. Suppose an economy produces only burgers and bags of fries. In 2010, 4000 burgers are sold at $3 each and 6000 bags of fires are sold at $1.50 each. In 2008, the base year, burgers were sold for $2.50 each and bags of fries sold for $2 each. a nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 95.45. b. nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 104.77. ominal GDP is $21,000, real GDP is $22.000, and the GDP deflator is 95.45. d. nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 104.77.1