Econ Assignment's 8&9

Which statement describes capital income as it pertains to the capital and labor income measure of gross domestic product (GDP)?

Capital income includes profits from business, rents earned from land and buildings, interest from financial assets such as bonds, and royalties from copyrights and patents but excludes income from the self‑employed.

Use the table to answer the questions. Round your answers to the nearest cent Which country has the largest average GDP per capita? Country A : $1.5 trillion GDP : 100 million population Country B : $5 trillion GDP : 400 million population

Country A

What does the investment component of GDP measure?

spending on goods to be used in future production

Assume that the Harmonia labor market is at the market equilibrium before the new minimum wage. The Harmonian government decides to introduce a minimum wage that is higher than the current market equilibrium wage. Which type of unemployment is affected by the new minimum wage?

Structural unemployment

The natural rate of unemployment equals

frictional unemployment plus structural unemployment

Given information about the economy of Pakistan, calculate Pakistan's GDP. Note that the currency of Pakistan is the rupee. Assume that the values are all current and no conversions need to be made. The government spends 2.90 trillion rupees. 2.90 trillion rupees. Individuals consume 8.90 trillion rupees. 8.90 trillion rupees. Individuals save 5.36 trillion rupees. 5.36 trillion rupees. Businesses invest 1.75 trillion rupees. 1.75 trillion rupees. Foreigners invest 0.62 trillion rupees. 0.62 trillion rupees. Pakistan imports 2.30 trillion rupees. 2.30 trillion rupees. Pakistan exports 1.20 trillion rupees. What is Pakistan's GDP?

12.45 trillion rupees

Information concerning the fictitious small island nation of Llamalandia is given in the table. Use the information in the table to answer the related questions. For the percentages, round your answers to two decimal places. Number of people employed : 205,715 Number of unemployed people: 15,483 Total population over age 16: 515,999 a) What is the size of the labor force?

221,198

Information concerning the fictitious small island nation of Llamalandia is given in the table. Use the information in the table to answer the related questions. For the percentages, round your answers to two decimal places. Number of people employed : 205,715 Number of unemployed people: 15,483 Total population over age 16: 515,999 b) How many people are out of the labor force?

294,801

Information concerning the fictitious small island nation of Llamalandia is given in the table. Use the information in the table to answer the related questions. For the percentages, round your answers to two decimal places. Number of people employed : 205,715 Number of unemployed people: 15,483 Total population over age 16: 515,999 d) What is the total labor force participation rate?

42.87

Information concerning the fictitious small island nation of Llamalandia is given in the table. Use the information in the table to answer the related questions. For the percentages, round your answers to two decimal places. Number of people employed : 205,715 Number of unemployed people: 15,483 Total population over age 16: 515,999 c) What is the unemployment rate?

7.00

Which transaction is not included in gross domestic product?

Francis receives her social security check.

Consider each person's situation to determine who would be counted among the "unemployed." Laura works 20 hours in a paid position for her local animal shelter. She would like to work more but cannot find a job that offers her more hours. Erik volunteers 10 hours a week at his children's school and does no other work. He sends his resume to 10 potential employers daily. Pete had a knee replacement two weeks ago and will not work at his workplace for the next three months. James quit his job to stay at home with his children and has not worked in 15 years, nor has he looked for work. Who meets the definition of "unemployed"?

Erik

What is the difference between real and nominal gross domestic product (GDP)? a. Nominal GDP is measured in dollars, whereas real GDP is a comparison to all other nation's production. b. Nominal GDP for a given year is measured in dollars of that year, whereas real GDP is measured in dollars of some base year. c. Nominal GDP is measured in dollars, whereas real GDP is measured in terms of some consumption commodity, such as tons of coal, available in the economy right now. d. Nominal GDP is another name of net domestic product, or NDP. e. There is no difference between real and nominal GDP. Real GDP measures the expenditure of a nation, whereas nominal GDP measures the income accounts that make up those expenditure measures.

Nominal GDP for a given year is measured in dollars of that year, whereas real GDP is measured in dollars of some base year.

Which is true if a nation is currently experiencing full employment?

The rate of cyclical unemployment is 0%

The Japanese car maker Honda owns production facilities in Marysville, Ohio. If the cars made there are sold exclusively in the United States, in which category would the cars be counted?

U.S. GDP

Bangladesh is thought to have "sweatshops" in which workers endure long hours and are paid relatively little. Suppose that the workers form a union that negotiates higher wages and better working conditions. What happens to unemployment as a result of the union's demands?

Unemployment increases.

After the financial crisis that hits the country of Arcadia in 2012, a total of 4 million people are unemployed. If 55 million individuals are lucky enough to keep their jobs, what is the unemployment rate? Please specify your answer to two decimal places. a. 5.43% b. 6.78% c. 7.48% d. 8.01%

b. 6.78%

Which of the items, ceteris paribus, would cause an understatement of a nation's living standard by real gross domestic product per capita? a. an increase in amount of leisure time b. an increase in investment spending c. a decrease in the quality of air or water d. a decrease in amount of childcare by mothers e. an increase in amount of traffic congestion

an increase in amount of leisure time

Individuals who want to work, but have given up searching for a job because of limited prospects, are known as

discouraged workers

Suppose the country of Altaria only produces one style of good, pink tutu. Last year, nominal GDP was $50,000 and this year it is $200,000. What can be definitively concluded? a. Output in Altaria quadrupled. b. The rate of unemployment decreased. c. The standard of living in Altaria increased. d. All of the statements are necessarily true. e. None of the statements are necessarily true.

e. None of the statements are necessarily true.

The United States Bureau of Labor Statistics (BLS) categorizes individuals in the United States into three broad groups based on their employment status. Categorize each individual as employed, unemployed, or not in the labor force according to BLS standards e) Chung is a 45‑year‑old single parent working only 10 hours a week, but seeking more hours

employed

A good produced in the current time period but put into a firm's inventory instead of being sold

is considered unsold inventory and counted as a part of investment in current GDP

Individuals who would like to work but have not looked for work during the past four weeks are included among

marginally attached workers

The United States Bureau of Labor Statistics (BLS) categorizes individuals in the United States into three broad groups based on their employment status. Categorize each individual as employed, unemployed, or not in the labor force according to BLS standards b) Sarah is a 78‑year‑old retiree who has no intention of returning to work

not in the labor force

The United States Bureau of Labor Statistics (BLS) categorizes individuals in the United States into three broad groups based on their employment status. Categorize each individual as employed, unemployed, or not in the labor force according to BLS standards d) James is a 35‑year‑old who most recently sought work two years ago

not in the labor force

The United States Bureau of Labor Statistics (BLS) categorizes individuals in the United States into three broad groups based on their employment status. Categorize each individual as employed, unemployed, or not in the labor force according to BLS standards. a) Brian is a 31‑year‑old who would like a job, is available to work, and most recently sought work six weeks ago

not in the labor force

Which of the factors would decrease the rate of frictional unemployment?

the advent of the Internet, which makes finding available jobs easier

The labour force is comprised of

the number of people counted as employed and the number of people counted as unemployed

Real GDP per capita is NOT an adequate measure of

the well-being of each person in an economy.

Individuals who are involuntarily working part‑time are considered

underemployed

The United States Bureau of Labor Statistics (BLS) categorizes individuals in the United States into three broad groups based on their employment status. Categorize each individual as employed, unemployed, or not in the labor force according to BLS standards c) Bruce is a 61‑year‑old who has been without a job for two years, is available for work, and most recently sought work last week

unemployed