Question

Please answer/explain the following 1) Country a has a GDP of $300 billion in a population...

Please answer/explain the following
1) Country a has a GDP of $300 billion in a population of 10 million, while country B has the GDP of $3 trillion in a population of 200 million. The per capita GDP and country and country B are _____ and ______ respectively.
a) 15,000; 7,500
b) 15,000; 30,000
c) 30,000; 15,000
d) 7,500; 15,000

2) Consumption is spending by:
A) households on capital goods and inventories
B) government on subsidizing consumption goods
C) business on corporate social responsibility initiatives
D) households on goods and services

3) the value, at current market prices, on the final goods and services produced during a particular period is:
A) gross foreign factor output
B) gross domestic product
C) net national product
D) gross personal product

4) For countries A, B, C, and D, have comparable economies. The average value of GDP deflator in the last 12 years for countries A,B,C, and D were 133, 122, 166, and 142. Which has the most stable economy?
A) country A
B) country B
C) country C
D) country D




Homework Answers

Answer #1
  1. c) 30,000; 15,000. Per capita GDP = GDP / Population. Country A = 300000/10 = 30000 and country B = 3000000/200 = 15000 (! trillion = 1000000 million and 1 billion = 1000 million)
  2. D) households on goods and services. Consumption is done by consumers out of their disposable income as per their marginal propensity to consume.
  3.   B) gross domestic product. GDP is the market value of goods and services produced within the domestic boundary of a country during a year.
  4. B) country B. Stable country is one whose deflator is minimum. It means that prices have not jumped drastically and hence economy is stable.
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