Excercise Essay Example

Excercise Paper Payments you made to Davits Salon for your hair and make up. 7. Purchases of stocks and bonds by an investor. 0 8. Production and sale of marijuana 9. Construction off new factory bay private enterprise. 0 10. Purchases of imported chocolates by consumers. 0 1 1 . Vegetables produced in the backyard and consumed by the household. 0 12. Sales of second hand cars. EX. 3. Sales by Intel Philippines of semiconductors to the US. 0 14. Sales of a San Miguel Brewery in Hong Kong to the Chinese Mainland. 0 15. Sales by Motile of car batteries to Ionians Philippines II.. Indicate to which the following items belong by writing GAP for Gross Domestic Product, GNP for Gross National Product. Both for an item that is included in both GAP and GNP. BOTH 1 Salary of your teacher in Economics. BOTH 2. Christmas bonus paid to government employees of the Philippines. BOTH 3. Medical insurance premium paid to a Filipino insurance company in Magmata. GAP 4. Consultancy fee of a US scientist working in the Philippines. GNP 5. Salaries of overseas Filipinos in Hong Kong. GNP 6. Profits of San Miguel in Hong Kong. GAP 7. Profits of LOS shareholder of Intel Philippines. GNP 8. Rental income of a Filipino who owns an apartment in the US. BOTH 9. Rental income off Filipino owned condominium in Vito Cruz. GAP 10. Salary of the Japanese president of Honda Philippines. II. Fill in the blanks. 1. A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute how much to GAP? Mans. $250 2. Suppose there are only two firms in an economy: Rolling Rawhide produces rawhide and sells it to Cheney Chomp, Inc. , which uses the rawhide to produce and sell dog chews. We will write a custom essay sample on Excercise specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Excercise specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Excercise specifically for you FOR ONLY $16.38 $13.9/page Hire Writer With each 52 of rawhide that it buys from Rolling Rawhide, Chewy Chomp, Inc. Produces a dog chew and sells it for $5. Neither firm had any inventory at the beginning of 2008. During that year, Rolling Rawhide produced enough rawhide for 1000 dog chews. Chewy Chomp, Inc. Bought 75% of that rawhide for $1500 and promised to buy the remaining 25% for $500 in 2009. Chewy Chomp, Inc. Produced 750 dog chews during 2008 and sold each one during that year for $5. What was the economy GAP for 2008? Mans. $4250 IV. The table below contains data for the country of Crete for the year 2010. Total income $5731 Household purchases of durable goods 1108 Household purchases of nondurable goods $702 Household purchases Of Nan-education services $203 Household purchases of education services $302 Household purchases of new housing $816 Purchases of capital equipment $333 Inventory changes $75 Purchases of new structures $267 Depreciation $401 Local government spending on goods and services $236 State government spending on goods and services $419 Federal government spending on goods and services $1182 Transfer payments $707 Foreign purchases of domestically produced goods $217 Domestic purchases Of foreign goods $129 1. What was Crates GAP in 2010? Mans. $5731 2. What was Crates consumption in 2010? Mans. $2315 3. What was Crates investment in 2010? Mans. $ 1491 4. What were Crates government purchases in 2010? Mans. $1837 5. What were Crates net exports in 201 0? Mans. $88 V. The table below contains data for the country of Fatherland, which produces only waffles and pancakes. The base year is 2009. Year Price of Waffles Quantity of Waffles Price of Pancakes Quantity of Pancakes 2008 $2. 00 100 $1. 00 2009 120 150 2010 $3. 00 200 201 1 $4. 00 180 220 1. In 2008, this countrys nominal GAP was $300 2. In 2009, this countrys nominal GAP was $540 3. In 2008, this countys real GAP was $400 4. In 2009, this countrys real GAP was $540 5. In 2010, this countrys real GAP was $700 In 2011, this countrys real GAP was $800 6. 7. 2008, this countrys GAP deflator was $75 8. In 2009, this countrys GAP deflator was 100 In 2010, this countrys GAP deflator was 128. 6 9. 10. In 201 1, this countrys GAP deflator was 172. 5 11. From 2010 to 2011, this countrys output grew 14. 3%. 12. This countrys inflation rate from 2008 to 2009 was 33. 3%. 13. This countrys inflation rate from 2010 to 201 1 was 34. . VI. The table below pertains to Knapsack, an economy in which the typical consumers basket consists of 2 pillows and 15 hotdogs. Price of a Pillow price of a Hotdogs $40 $3 $45 $4 $50 . If the base year is 2009, then the consumer price index was 100 in 2009, 2. 120 in 2010, and 3. 116 in 201 1. 4. If the base year is 2009, then the economy inflation rate in 2010 is 20 percent. 5. The ICP was 96 in 198 2, and the ICP was 208 in 2010. How much money would you have needed in 201 0 in order to buy what you could have bought with $500 in 1982? Mans. $1 ,083. 33 6. The consumer price index was 25 in 2006 and 234 in 2007. The nominal interest rate during this period was 6. 5 percent. What was the real interest rate during this period? Mans. 2. 5 percent 7. If Philippine real GAP grows by 7% while its population grows by 2%, then real per capita income will grow by 5%8. And its per capita income using the rule of 70 will double in 14 years. 9. In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity? Mans. 1 00 pounds of laundry per hour 10. Stock in Creole Cuisine Restaurants is selling at $25 per share. Creole Cuisine had earnings Of $5 a share and a dividend yield Of 5 percent. The dividend is $1. 25 11. While the PIE ratio 5. VII. Suppose that in a closed economy GAP is equal to 1 1. 000, taxes are equal to 2,500 consumption equals 7,500 and government purchases equal 2,000. 1. Private saving = 1000 2. Public saving = 500 3. National saving = 1500 Assume the following information for an imaginary, closed economy. GAP $120,000; consumption $70,000; private saving $9,000; national saving = $12,000. 4. For this economy, investment amounts to $12,000. 5. The government is running a budget (deficit, surplus) surplus 6. Al to $3000. 7. For this economy, government purchases amount to $38,000. 8. For this economy, taxes amount to $41*000. 1 . Suppose the market for alienable funds is in equilibrium and the government raises the tax on the interest earned by savers. This will cause (demand, supply) supply for alienable funds to (increase, decrease) decrease _ so that the (demand, supply) supply curve shifts to the (left, right) left. In the new equilibrium, the real interest rate is (higher, lower) higher and the equilibrium quantity of alienable funds (increases, decreases) decreases. In he new equilibrium saving is (greater than, equal to, less than) equal to investment. 2. Suppose the market for alienable funds is in equilibrium and the government removes the tax incentives it used to give firms that used their profits to invest.. This will cause (demand, supply) demand for alienable funds to (increase, decrease) decrease so that the (demand, supply) demand curve shifts to the (left, right) left. In the new equilibrium, the real interest rate is (higher, lower) higher and the equilibrium quantity of alienable funds (increases, decreases) decreases.. 3. Suppose the government budget is initially balanced and the market for alienable funds is in equilibrium when the government reduces its spending and incurs a budget surplus. This will cause (demand, supply) supply for alienable funds to (increase, decrease) increase so that the (demand, supply) supply curve shifts to the (left, right) right. In the new equilibrium, the real interest rate is (higher, lower) lower and the equilibrium quantity of alienable funds (increases, decreases) increases. In the new equilibrium private investment is (higher, lower) higher. IX. Use the following table to fill in the blanks. Numbers are in millions. Total Population of working age: 139. 7 Number of Unemployed: Number of employed: 57 92. 3 a. The labor force is 98 million. B. The number of persons not in the labor force is 41. 7 million. C. The labor force participation rate is 70 percent. D. The unemployment rate is 5. 8 percent. X. The figure below shows a diagram of the labor market before and after a minimum wage is imposed. 1. If the market for workers is in equilibrium at $5. 00 per hour as shown in this diagram, the number of workers unemployed is zero. 2. A minimum wage of $8. 00 per hour will increase unemployment by how many workers? 600 workers.