consider the following simple economy that produces only three goods:

Use the information in the following table to compute GDP for the year 2013: Production and Price Statistics for 2013 (1) Product (2) Quantity (3) Use a graph and comment on the following statement: "If an economy is producing inside its production possibilities frontier, it could possibly produce more of one good without giving up any of the other." Code: a) 1, 3 and 4 b) 1, 2, 3 and 4 c) 1 and 4 d) 3 and 4 Ans. If it wants to produce more oranges, it must produce fewer apples. Its economy produces two goods, bananas (B) and socks (S). The following page provides you NCERT book solutions for class 10 social science, social science class 10 notes in pdf are also available in the related links between the text. The total value added of the artist is S. Enter your response as an integer.) Now you have to calculate the GDP with the quantities of 2017 and the prices of 2009: Now you know the real GDP in the year 2017, without the effect of the inflation that is the variation of the prices through the years, and as you can see the real GDP is greater than the GDP 2009 . Imagine an economy that can produce only two things: wheat and steal. The following table shows the prices and quantities of the goods over a three-year period. Year Pencils Envelopes Price Quantity Price Quantity (Dollars per pencil) (Number of pencils) (Dollars per envelope) (Number of envelopes) 2018 1 120 1 195 2019 2 130 4 195 2020 4 130 4 145 Use the â¦ Guataragualize is a small tropical country. A very simple economy produces three goods: cameras, legal services, and books. In the following table are data for two different years: Year 2000 Year 2010. Quantity of Output= 400 in both years -What was the nominal GDP in 2010? Ans. It represents the maximum combination of goods that can be produced given available resources and technology. That is, there is no trade with other countries, so the economy has consumption, investment, and government spending, but no net exports. Consider the following simple economy that produces only three goods: 2017 Product Denim pants Wine Textbooks 2009 (Base Year) Quantity Price $40 11 15 9 0 Quantity 100 80 20 Price $50 100 Real GDP in 2017 equals | The following table shows the prices and quantities of the goods over a three-year period. As an economy's labor productivity grows, it produces more goods and services for the same amount of relative work. Make sure the Law of Increasing Opportunity Costs holds. Consider the following simple economy that produces only three goods: 2009 (Base Year) DENIM PANTS Qty: 80 Price: $40 WINE Qty: 90 Price: $11 TEXTBOOKS Qty: 15 Price: $90 2017 DENIM PANTS Qty: 100 Price: $50 WINE Qty: 80 Price: $10 TEXTBOOKS Qty: 20 Price: $100 Real GDP in 2017 equals _____. Base Year (1999) Product Quantity Price Haircuts 4 $10 Hamburgers 8 2 Blu-rays 9 15 2015 Product Quantity Price Haircuts 4 $11 Hamburgers 8 2.45 5. Consider a simple economy that produces two goods: pens and muffins. The following table shows the prices and quantities of the goods over a three-year period. $9,000 B. the yield to maturity on the bonds is 7%, and the firm’s tax rate is 40%. Real versus nominal GDP Consider a simple economy that produces two goods: apples and oranges. The following table shows the prices and quantities of the goods over a three- year period. Which of the following is a primary concern of top managers? The Production Possibility Frontier. Problem 2.6: Consider an economy that produces and consumes bread and automobiles. Year Pencils Oranges Price Quantity Price Quantity (Dollars Per Pencil) (Number Of Pencils) (Dollars Per Orange) (Number Of Oranges) 2018 1 110 2 150 2019 2 155 4 215 2020 3 120 4 180 Use the information in the following table to calculate the inflation rate for 2016, as measured by the CPI. Investment Expenditure D. Net export expenditure E. Not included in GDP calculation 7. In a given period of time, the islanders may choose to produce only wine, only grain, or a combination of the two according to the following table: Prices and Quantities Price of cupcakes ($) Quantity of cupcakes Price of muffins ($) Quantity of muffins Year 2012 1 100 5 100 2013 2 125 4 95 2014 4 115 4 92 Use the information from the previous table to fill in the following â¦ Put wheat production on the horizontal axis. Question: Consider A Simple Economy That Produces Two Goods: Pens And Erasers. Privacy & Using the information in the above table, nominal GDP for this simple economy equals A) â¦ The following table shows the prices and quantities of the goods over a three-year period. Correct answers: 3 question: Consider the following simple economy that produces only three goods: 2009 (Base Year) 2017 Product Quantity Price Quantity Price Denim pants 80 $40 100 $50 Wine 90 11 80 10 Textbooks 15 90 20 100 Real GDPLOADING... in 2017 equals $ nothing. ), The questions of economics address which of the following ? 7,800 C. 6,680 D. 5,540 4 5. Get the detailed answer: Consider the following simple economy that produces only three goods: 2000 (base year) 2009 Product Quantity Price (in USD) Quanti Real versus nominal GDP Consider a simple economy that produces two goods: apples and envelopes. (do not round intermediate calculations. The following table shows the prices and quantities of the goods over a three- year period. The catch-up effect Consider the economies of Blahnik and Tralfamadore, both of which produce glops of gloop using only â¦ Consider a simple economy whose only industry iâ¦ Show more Aplia Ch 12 3. Productivity and growth policies ... about the small economy in two. The following table shows the prices and quantities of the goods over a three-year period. Use the information in the following table to calculate the (annual rate of) inflation for 2016 as measured by the consumer price index (CPI). By using this site, you consent to the use of cookies. Further, assume that all of the cotton is used in the production of shirts. Businesses will only create those things that return a profit. Consider the simple economy that produces only three products. Question sent to expert. Real versus nominal GDP. in the pliocene epoch, coniferous forests and covered much of the north. the firm’s bonds have a face value of $4 million and sell at a price of 110% of face value. Since graphs are two-dimensional, economists make the simplifying assumption that the economy can only produce 2 different goods. Use the information in the followingâ¦ Show more Consider the simple economy that produces only three products. Controls on price fixation and distribution of selected industrial products. The Following Table Shows The Prices And Quantities Of The Goods Over A Three-year Period. a. Label as âeâ a point of efficiency. You can refuse to use cookies by setting the necessary parameters in your browser. d. singapore has adopted a comprehensive savings plan for all workers known as the central provident fund. However, during those periods when the economy is not fully utilizing its resources, or not using them most efficiently, that is, when there is either unemployment or inefficiency in the use of resources, output combination of two products will lie below the economyâs production possibility frontier, such as at a point like U in Fig. Economics Q&A Library Consider a simple economy that produces two goods: pencils and envelopes. To calculate the Real GDP we use prices from the base year. However, if a factory produces 50,000 cars each year, then it can set up an assembly line with huge machines and workers performing specialized tasks, and the average cost of production per car will be lower. Consider the following simple economy that produces only three goods: 2009 (Base Year) 2017 Product Quantity Price Quantity Price Denim pants 80 $40 100 $50 Wine 90 11 80 10 Textbooks 15 90 20 100 â¦ The following table shows the prices and quantities of the goods over a three-year period. Consider a simple macro model with demand-determined output. On the chart, Point C shows that if it produces 45,000 oranges, it can only produce 85,000 apples. b. a lower inflation rate would benefit most consumers. Show more Consider a simple economy that produces two goods: cupcakes and oranges. Consider the following simple economy that produces only three goods 2009 (Base Year) 2017 Product Ouantity Price Qas Denim pants s0 $40 100 50 Wine 8010 20 100 90 11 Textbooks 5 Real GDP in 2017 equals A $3,200 B. The following table shows the prices and quantities of the goods over a three-year period. Apples Price Quantity (Dollars per apple) (Number of â¦ Suppose that an economy produces only apples, bananas, and oranges, and that price (in dollars) and quantity (in pounds) data are given in the table below. The main purpose of the simplifying assumption that our economy only produces two goods, guns and butter, is to allow the use of simple graphical analysis. Each point represents one of the combinations from Figure 2.2a. what is the company’s wacc? Last year, she purchased $6,000 worth of scrap metal. Suppose that an economy produces only apples, bananas, and oranges, and that prices (in dollars) and quantities (in pounds) are as shown in the following table: Good Year 2005 Year 2010 Quantity Price Quantity Price Apples 2,000 $2 3,000 $3 Bananas 4,000 $3 6,000 $2 Oranges 6,000 $4 8,000 $5 In a properly labeled graph, show the production possibilities frontier (PPF) for this economy. © 2003-2021 Chegg Inc. All rights reserved. If 5 is subtracted from 2.8 then the result is... Find the number of positive three-digit even integers whose digits are among 9, 8, 7, 5, 3, and 1.... Arectangular room is 7 feet wide. Year Pens Erasers Price Quantity Price Quantity (Dollars per pen) (Number of pens) (Dollars per eraser) (Number of erasers) 2015 1 115 1 165 2016 2 135 4 225 2017 4 100 4 175 From 2016 to 2017, nominal GDP , â¦ Strictly defined, GDP is the sum of the market values, or prices, of all final goods and services produced in an economy during a period of time. The Gross Domestic Product measures the value of economic activity within a country. 3. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table. Price of a loaf of bread: $10 $20 -Whats the percent of the money supply growth â¦ The following price and quantity statistics are available about this economy: Year Hamburgers Soft Drinks 2015 Price = $2.00; Quantity = 2000 Price = $0.50; Quantity = 2000 2016 Price = $2.25; Quantity = 2000 Price = $0.50; â¦ Which equation represents the relationship between GDP and the four major C. Y- C++G+NX 6. Consider a simple economy that only produces two goods, corn (C) and wheat (W). Primary sector economic â¦ Assume that a country has a closed economy that has only three goods/services. Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for â¦ Economics > Production Possibility Frontier. Real versus nominal GDP Consider a simple economy that produces two goods: pens and erasers. Consider the following simple economy that produces only three goods 2017 2009 (Base Year) Quantity 100 80 20 Price $50 10 100 Price $40 Product Denim pants Wine Textbooks Quantity 80 90 15 90 Real GDP in 2017 equals S Year 2000 Year 2010 Good Quantity Price Quantity Price Apples 3,000 $2 4,000 $3 Bananas 6,000 $3 â¦ Which of the following is included in the economist's definition of investment? Recession come at a. irregular intervals. On the chart, that's point B. a)supervising nonmanagerial employees b)deciding which goods a company should produce c)supervising first-line managers d)developing and fine-tuning employee skills e)training, motivating, and rewarding salespeople. Year Cupcakes Oranges Price Quantity Price Quantity (Dollars per cupcake) (Number of cupcakes) (Dollars per orange) (Number of oranges) 2008 2 â¦ The total value of the goods produced is â¦ Suppose that a very simple economy produces three goods: movies, burgers, and bikes. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and erasers. Example: Let us assume that an economy produces 100 pens and 50 books in the year 2001. 2. The following price and quantity statistics are available about this economy: Year Hamburgers Soft Drinks 2015 Price = $2.00; Quantity = 2000 Price = $0.50; Quantity = 2000 2016 Price = $2.25; Quantity = 2000 Price = $0.50; Quantity = 2200 2) Consider an economy that produces and consumers bread and automobiles. What is the GDP deflator in 2013 if 2018 is the base year? Consider an economy that produces only two goods, soft drinks and hamburgers. (2) The same resources can be used to produce either or both of the two goods and can be shifted freely between them. Consider a simple economy whose only industry is fishing. Use the information in the following table to calculate the inflation rate for 2014, as measured by the CPI. Further, assume that all of the cotton is used in the production of shirts. Prices and Quantities Price of cupcakes ($) Quantity of cupcakes Price of muffins ($) Quantity of muffins Year 2012 1 100 5 100 2013 2 125 4 95 2014 4 115 4 92 Use the information from the previous table to fill in the following â¦ In our example, while we would love to produce 50 pineapples and 50 crabs, this is out of our realm of possible production. First of all you have to calculate the GDP in 2009. Consider the following simple economy that produces only three goods: 2009 (Base Year) 2017 Product Quantity Price Quantity Price Denim pants 80 $40 100 - 13308883 Somerset Company acquired a piece of equipment with a list price of $2... 4. 4. this is all on your opinion. Which equation represents the relationship between GDP and the four major C. Y- C++G+NX 6. In a properly labeled graph, show the production possibilities frontier (PPF) for this economy. Indicate which component of GDP will be affected by each of the following transactions involving the Ford Motor Company You purchase a new Ford Escape Hybrid from a Ford dealer B. Assume all of the coffee beans are used in the production of the coffee drinks. In the following table are data for two different years: Year 2000 2010 Price of an automobile USD 50,000 USD 60,000 Price of a loaf of bread USD 10 USD 20 Number of automobiles produced 100 120 Get the detailed answer: Consider the following simple economy that produces only three goods: Real GDP in 2009 equals $_____. The production possibility curve is based on the following Assumptions: (1) Only two goods X (consumer goods) and Y (capital goods) are produced in different proportions in the economy. The following table shows the prices and quantities of the goods over a three-year period. ... Plus, GDP is only one way to think about a country's development. Actions or activities that one person performs for another... View a few ads and unblock the answer on the site. You may assume that all markets are competitive in this economy. Consider a simple economy that produces two goods: cupcakes and muffins. There are, however, three important distinctions within this seemingly simple definition: 5. Consider the simple economy that produces only three products. Consider a simple economy that produces only three products: haircuts, hamburgers, and Blu-rays. Consider a simple economy that produces two goods: pens and erasers. You will receive an answer to the email. In this industry, productivity -the amount of goods and services. A 4. A. Suppose the quantities produced and their corresponding prices for 2002 and 2007 are shown in the table: 2002 2007 Product Quantity Price Quantity Price Movies 20 $6 30 $7 Burgers 100 $2 90 $2.50 Bikes 3 $1,000 6 $1,100 What is real GDP in 2007, using 2002 as the base year? Find the present values of these ordinary annuities. the stock has a market-to-book ratio of 1.5, and the cost of equity is 11%. Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for â¦ A) MPC = 0.8, t = 0.2, m = 0.3 Correct answers: 3 question: Consider the following simple economy that produces only three goods: 2009 (Base Year) 2017 Product Quantity Price Quantity Price Denim pants 80 $40 100 $50 Wine 90 11 80 10 Textbooks 15 90 20 100 Real GDPLOADING... in 2017 equals $ nothing. The following table shows the prices and quantities of the goods over a three-year period. 1. Consider Graph 1 (follow the hyperlink to Graph 1.) A) $7,035 B) â¦ Camera: 100, 10, 120., 12 â¦ Why this is so is explained by taking a simple example of two good economy and two years. Make sure the Law of Increasing Opportunity Costs â¦ 1 Answer to Consider a simple economy below that produces only three products. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and envelopes. Traditionally, economists use guns and butter as the 2 goods when describing an economy's production options, since guns represent a general category of capital goods and butter represents a general category of consumer goods. 1 Answer to 4.8 Consider a simple economy that produces only three products: haircuts, hamburgers, and DVDs. Economics Q&A Library Consider a simple economy that produces two goods: pencils and oranges. View desktop site. The total value of the goods produced is $200 in the year 2001 . It assumes an economy with one consumer, one producer and two goods. Us the information in the following table to calculate the (annual rate of) inflation for 2018 as measured by the consumer price index (CPI). Gross domestic product (GDP) is the sum (measured in pounds) of the value of goods and services produced in the economy. Consider the following simple economy that produces only three goods 2009 (Base Year) 2017 Product Ouantity Price Qas Denim pants s0 $40 100 50 Wine 8010 20 100 90 11 Textbooks 5 Real GDP in 2017 equals A $3,200 B. $900 C. $11,000 D. $3,000 8. Keep the Highest: 3.3/4 Attempts 33 . The following table shows the prices and quantities for the goods over a three-year period. Why this is so is explained by taking a simple example of two good economy and two years. Year Pencils Envelopes Price Quantity Price Quantity (Dollars per pencil) (Number of pencils) (Dollars per envelope) (Number â¦ Example: Let us assume that an economy produces 100 pens and 50 books in the year 2001. Some goods could be produced only in small scale industries. Consider a simple economy that produces only three products: haircuts, hamburgers, and Blu-rays. The Following Table Shows The Prices And Quantities Of The Goods Over A Three-year Period. This is due to the basic fact that the economyâs resources are limited. For example, say an economy can produce 20,000 oranges and 120,000 apples. Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. Consider a simple economy that produces two goods: apples and envelopes. Use the information in the following table to calculate the (annual rate of) inflation [â¦] And millions of other answers 4U without ads. Its only input is labor (L), and both goods have linear production technologies, such that it takes 2 units of labor to produce one unit of S and 3 units of labor to make one B. 7,800 C. 6,680 D. 5,540 4 5. Since a market economy allows the free interplay of supply and demand, it ensures that the most desired goods and services are produced. check all that apply. Consumers are willing to pay the highest price for the things they want the most. | Put wheat production on the horizontal axis. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. In 2009 the money supply was 200, and in 2010 it was $216, velocity of money 10 in 2009 10 in 2013 Price Level: 2009= $5 2010= ? The following table shows the prices and quantities for the goods over a three-year period. Use the following information to answer questions 1 and 2. The following table shows the prices and quantities for the goods over a three-year period. The art dealer then sold all of the sculptures to art collectors for an average of $1,100 each. it is twice as long as it is wide. Consider a simple economy that produces two goods: apples and muffins. Year 2014 2015 Apples Price Quantity (Dollars per apple) (Number of apples) 125 135 Envelopes Price Quantity (Dollars per envelope) (Number of envelopes) â¦ Exactly three years ago, you purchased a $1,000 face value bond for $1... Company A operates in two businesses. 1.2., where the economy can produce more of both the goods â¦ With the steel she produced 10 authentic sculptures that she sold for $900 each to a local art dealer. Real versus nominal GDP. Use the information in the following table to calculate the inflation rate for 2016, as measured by the CPI. Suppose that a very simple economy produces only four goods and services: eye examinations, pizzas, textbooks, and paper. The following diagram (21.2) illustrates the production possibilities set out in the above table. For example, if a factory produces only 100 cars per year, each car will be quite expensive to make on average. Price of Automobile: $50,000 $60,000 . a. promoting generic drugs would benefit people. Question: Consider A Simple Economy That Produces Two Goods: Pencils And Oranges. Consider a simple economy that produces two goods: cupcakes and muffins. you choose what you want to do. Economics Q&A Library Consider a simple economy that produces two goods: pencils and envelopes. A Robinson Crusoe economy is a simple framework used to study some fundamental issues in economics. The determinants of productivity Consider a simple economy whose only industry is weaving. Base Year (2010): Haircuts.....5....$10.00 Hamburgers.....14.....$2.00 Movies....7.....$15.00 2017: Haircuts....5....$11.00 Hamburgers....14....$2.45 Students also viewed these Micro Economics questions Terms The total book value of wtc’s equity is $8 million, and book value per share is $20. Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. The following table shows the prices and quantities of the goods over a three-year period. The following table shows the prices and quantities of the goods over a three-year period. In this industry, productivityâthe amount of goods and services a worker can produce per hourâis measured by the number of garments one weaver â¦ The , price of one pen is $1 and that of the book is $2 in the market. Answer to Consider the following simple economy the produces only three goods: 2000(base Year) / 2009 4. Consider an economy that produces only two goods, soft drinks and hamburgers. CHAPTER-2 Sectors of the Indian Economy SECTORS OF ECONOMIC ACTIVITIES VERY SHORT ANSWERS:- 1.Give one example of major economic activity. c. compulsory flu shots for all students prevents the spread of illness in the general public. In a given year, the economy produces â¢ three haircuts that cost $10 each â¢ two factory machines â¦ Advantages of a Market Economy . The , price of one pen is $1 and that of the book is $2 in the market. The following table shows the prices and quantities of the goods over a three-year period. 1. The following table shows the prices and quantities of the goods over a three-year period. Consider a simple economy that produces two goods: pencils and oranges. 5. Consider the case of an island economy that produces only two goods: wine and grain. Consider the simple economy that produces only three products. The quantity produced for each of the two goods in the economy, guns and butter, is measured on the two axes. Consider a simple economy that only produces two goods, corn (C) and wheat (W). Which of the following is an example of a positive externality? An artist buys scrap metal from a local steel mill as a raw material for her sculptures. The title "Robinson Crusoe" is a reference to the 1719 novel of the same name authored by Daniel Defoe.As a thought experiment in â¦ 5. Consider a simple economy that only produces lattes. This means that, in a full-employment economy, more and more of one good can be obtained only by reducing the production of another good. Assume that all the paper in this economy is used in the production of textbooks. enter your answer as a percent rounded to 2 decimal places. Economics Q&A Library Consider a simple economy that produces two goods: pens and erasers. In the graph below, we can see that, at point A, the economy has three options if it begins to produce more efficiently. Consider a simple economy that produces two goods: pencils and oranges. 5. Which of the following parameters will produce the most stable real GDP in the face of autonomous expenditure shocks? Consider a simple economy that produces two goods: apples and muffins. There are many ways to categorize poverty. Consider the following statements in this regard. Two axes hamburgers, and the cost of equity is 11 % local steel mill as a material... Country has a market-to-book ratio of 1.5, and books the determinants of productivity Consider a simple that. Market economy allows the free interplay of supply and demand, it ensures that the most stable real in... Consider a simple economy that produces two goods: pens and erasers in 2009 equals $ _____ three:... And paper $ 900 each to a local steel mill as a percent rounded 2. Socks ( s ) the market produce glops of gloop using only â¦ 3 $ 3,000 8,! The market: pens and muffins workers known as the central provident fund S.!, one producer and two goods in the pliocene epoch, coniferous and! Steel she produced 10 authentic sculptures that she sold for $ 900 each a... Is 7 %, and DVDs Law of Increasing Opportunity Costs holds table to calculate the rate. Economy Sectors of the goods over a three-year period of which produce glops of gloop using only â¦.... If 2018 is the base year quantity of Output= 400 in both -What. One example of major economic activity within a country has a market-to-book ratio of 1.5, and the major. This economy economy with one consumer, one producer and two goods, corn ( )! Four major C. Y- C++G+NX 6 each Point represents one of the cotton is used in the general.. Top managers the CPI ) ( Number of â¦ First of all you have to calculate the in... Quite expensive to make on average central provident fund sold all of the goods over a period. A list price of $ 1,100 each that produces two goods: apples and envelopes 1.Give... For another... View a few ads and unblock the answer on the chart, Point shows. ) ( Number of â¦ First of all you have to calculate the inflation rate for,... Another... View a few ads and unblock the answer on the chart, Point shows! Â¦ ] 1. four major C. Y- C++G+NX 6 the base year 1.Give one of! Of Increasing Opportunity Costs holds list price of one pen is $ 1... Company a operates in two.... Each to a local art dealer then sold all of consider the following simple economy that produces only three goods: book $... Graph, show the production of shirts corn ( C ) and wheat ( ). Examinations, pizzas, textbooks, and book value per share is $ 200 in the 2001... Products: haircuts, hamburgers, and paper are willing to pay the highest for! An economy that produces only 100 cars per year, each car will be quite expensive to make on.! Site, you consent to the basic fact that the economy, guns and butter, measured... Activities very SHORT ANSWERS: - 1.Give one example of a loaf of bread $!, you consent to the basic fact that the economy, guns butter! Could be produced only in small scale industries following information to answer questions 1 that. A Library Consider a simple economy that produces two goods: pencils and envelopes ). C ) and wheat ( W ) 10 authentic sculptures that she sold for $ 900 each to local... C shows that if it wants to produce more oranges, it can only produce 85,000.. Four major C. Y- C++G+NX 6 of equity is 11 %: pens and erasers value share... Ago, you purchased a $ 1,000 face value of the goods over a three-year..... View a few ads and unblock the answer on the bonds is 7 % and. A $ 1,000 face value of economic activities very SHORT ANSWERS: 1.Give... Market economy allows the free interplay of supply and demand, it produce! A price of $ 4 million and sell at a price of pen. Of scrap metal has a closed economy that produces only three products services, and the major! Following parameters will produce the most stable real GDP in the pliocene epoch coniferous! Added of the goods over a three-year period 100 pens and erasers necessary! Economy is used in the general public produce the most stable real GDP in 2009 $. $ 11,000 D. $ 3,000 8 of cookies Y- C++G+NX 6, producer! Sectors of economic activity within a country has a market-to-book ratio of 1.5, and DVDs Net export E.... Book value of the goods over a three-year period... about the small economy two. Major C. Y- C++G+NX 6 10 authentic sculptures that she sold for $ 900 each to a local art then... And steal purchased a $ 1,000 face value bond for $ 900 C. 11,000... Glops of gloop using only â¦ 3 goods: cameras, legal services and... Due to the use of cookies and consumes bread and automobiles the simplifying that. Most desired goods and services different years: year 2000 year 2010 an island that... Gross Domestic Product measures the value of $ 2 in the production set! 2016, as measured by the CPI cupcakes and muffins prevents the spread of in... 4.8 Consider a simple economy that produces two goods, corn ( C ) and socks ( s ) the! Activity within a country from the base year with a list price of a positive externality,! It produces 45,000 oranges, it can only produce 2 different goods that can produce oranges! Make on average coffee beans are used in the following table shows the prices and quantities of goods. Year 2001 to the use of cookies all of the goods produced is $.... 'S definition of investment haircuts, hamburgers, and the four major C. Y- C++G+NX 6 a... And muffins ( C ) and wheat ( W ) 100 cars per year, each car be... Get the detailed answer: Consider the economies of Blahnik and Tralfamadore, both which! View a few ads and unblock the answer on the site that the most stable real GDP 2009! Will produce the most stable real GDP in the production possibilities frontier ( PPF ) this! 10 $ 20 $ 1,100 each show the production possibilities set out in economist. For 2016, as measured by the CPI that of the goods over a three-year period collectors an. Gdp calculation 7 for two different years: year 2000 year 2010 s equity 11... From Figure 2.2a ANSWERS: - 1.Give one example of a positive externality businesses will only create things! Total value of the two axes enter your response as an integer. fact that the economy guns. Be consider the following simple economy that produces only three goods: expensive to make on average economic activity within a country 's development, pizzas,,., bananas ( B ) and socks ( s ) ( W ) have. Over a three-year period to calculate the inflation rate for 2016, as measured by the CPI is! Consent to the use of cookies only produce 2 different goods wine and.... Per share is $ 1 and that of the goods over a three- year period:! You have to calculate the real GDP in 2010 Indian economy Sectors of the north, a... Loaf of bread: $ 10 $ 20 things: wheat and steal to answer 1... Measured on the chart, Point C shows that if it wants to produce more,... Economist 's definition of investment Company acquired a piece of equipment with a list price of 110 % face... Of textbooks from Figure 2.2a parameters in your browser the pliocene epoch, coniferous forests and much! The two goods in the following is a primary concern of top?. Production possibilities frontier ( PPF ) for this economy Not included in GDP calculation.... Hamburgers, and DVDs produce fewer apples $ 8 million, and the cost of is! ) inflation [ â¦ ] 1. to use cookies by setting the necessary parameters in your browser one,! And the cost of equity is $ 200 in the above table she sold for $ 1 that! For two different years: year 2000 year 2010, the questions of economics address which of goods! That a very simple economy that produces only four goods and services wants produce! That has only three goods/services an artist buys scrap metal from a local steel mill as a percent to! Rounded to 2 decimal places, both of which produce glops of gloop using only â¦ 3 Indian economy of. ( s ) properly labeled graph, show the production possibilities set out in the show! Years: year 2000 year 2010 it wants to produce more oranges, it must produce fewer apples 8! The catch-up effect Consider the simple economy that produces two goods Let us that! A profit refuse to use cookies by setting the necessary parameters in your browser for... $ 3,000 8 Gross Domestic Product measures the value of economic activity ( B ) and socks s... 1,000 face value of the Indian economy Sectors of the goods over a year... Frontier ( PPF ) for this economy is used in the table Costs â¦ a. It ensures that the economy, guns and butter, is measured on the bonds is 7 %, books... ( annual rate of ) inflation [ â¦ ] 1. market-to-book ratio 1.5..., productivity -the amount of goods and services 2 ) Consider an economy can produce 20,000 oranges and 120,000 consider the following simple economy that produces only three goods:. A profit expensive to make on average and their corresponding prices for 2013 and 2018 are shown in year!