Question

15. What will happen to the supply curve is there is an increase in the number of sellers in a market (all else being equal)?   
     
          Supply will shift outward
          Supply will shift inward
          Supply will shift upward
          Supply of the good will not change

           

16. Suppose during the course of a year an economy produces $8 trillion of consumer goods, $3 trillion of investment goods, $4 trillion in government services, and has $2 trillion of exports and $3 trillion of imports.  
    Calculate GDP for that economy for that year.
  
                


17. In what ways is GDP NOT a good measure of a nation`s well being? (check all that apply)
     
          GDP counts services that people perform in their own home (cooking, cleaning, child rearing, lawn mowing, etc.) at only one half their market value
          GDP does not account for environmental harm caused by its production activities
          GDP does not count the value of leisure
          GDP does not take into account the amount that people pay in taxes
          GDP uses nominal prices instead of real prices
          GDP double counts the value of intermediate goods

           

18. A computer manufacturer sells assembled laptops for $1000 apiece. If the manufacturer pays $400 for components in a laptop, what is the value added to a laptop by the manufacturer?
  
                
           

19. If for a given year gross investment is $100 billion and the capital stock declines by $25 billion, then what is the amount of depreciation in that year?
  
                


20. Which of the following is included in the United States GDP? (check all that apply)
     
          Leisure time
          Value of child care provided by parents to their own children
          Ford trucks manufactured in Mexico
          Toyota trucks manufactured in Kentucky
          Value of child care provided by a day care center

Answer 1

15.if there is an increase in the number of sellers in a market(all else being equal) supply will shift outward.it means,supply will increase.when number of sellers increases,production of output increases and as a result,supply increases.

16.GDP=C+I+G+(x-m)

=$8+$3+$4(trillion)+(2-3)(trillion)

=$14 trillion+(-1)trillion

=14-1=$13 trillion

Therefore GDP=$13 trillion.

17. 1.GDP does not account for environmental harm caused by its production activities.

2.GDP does not count the value of leisure.

3.GDP does not take into account that people pay in taxes.

18. $400 is the value added because it is the only cost given to produce the laptop and value added is the final cost of laptop.

19.depreciation=investment-capital wear and tear cost

=100-25=$75 billion

20.toyota trucks manufactured in kentucky.