She then sold the dress for 800 rupees (her costs of finishing the dress were 150 rupees). Logically, the total output should be equal to the value of all goods and services produced in a country, but in counting every good and service, one actually ends up counting the same output again and again, at multiple stages of production. To illustrate, we can take a dressmaker who purchased a dress material for 500 rupees, then stitched and put final touches on the dress. Suppose that the income elasticity of demand is 0.5 and the interest elasticity of, Suppose you are a typical person in the U.S. economy. If the value of the trades being made by both the countries is equal at that point of time, then their trade accounts would be balanced: the exports would be exactly equal to imports in both the countries. Note that investment now increases with output. Since output identically equals income, the above leads to the following identity: where the triple-bar sign denotes an identity. The consumption function of Behr is given by: C=500+.8Y, where Y is income. Exchange of output between two countries is a very common occurrence, as there is always trade taking place between different nations of the world. Select L for Low-income nations. However the income of the dress maker is only $200. The value of the barber's output is 20*$10 =$200. Chapter 5 will discuss the, The gross income of Ginger Hughes is $215 per week. As a result, investment only includes expenditures on output that is not expected to be used up in the short run. an economy based on advanced technology, Which type of economic system has the highest level of government control? Then the following function measures the economy's savings corresponding to an income of x billion, Consider an economy with a constant nominal money supply, a constant level of real output Y = 100, and a constant real interest rate, r = 0.10. The consumption function of Behr is given by: C=500+.8Y, where Y is income. Now consider a dress maker, who buys $10 worth of cloth to make a dress which sells for $210.

Total output is $210. a. an economy based on advanced technology, Which type of economic system has the highest level of government control? But that is also his daily income. A. traditional economy B. market economy C. command economy D. mixed economy, What level of economic development is described by each of the following statements?

The concept of national output is essential in the field of macroeconomics. A. money reserved for saving B. income, The transition to a global economy has increased "what" within the U>S>? In this method, we look at income which is paid to factors of production and labour for their services in producing the output. The main challenge in using this method is how to avoid counting the same product more than once. Just as increases in usage or effectiveness of factors of production can cause output to go up, anything that causes labour, capital or their effectiveness to go down will cause a decline in output or at least a decline in its rate of growth. Select H for High-income nations..

In macroeconomics, the question of why national output fluctuates is a very critical one. An economy's income must be equal to it's expenditure because every transaction has a buyer and a seller. 6-2 Explain why an economy’s output, in essence, is also its income? Thus we have the identity that output equals income (where an identity is an equation that is always true regardless of the values of any variables). One way of tackling the problem of over counting is to, consider only value addition, i.e., the new output created at each stage of production. Suppose that the income elasticity of demand is 0.5 and the interest elasticity of, Suppose you are a typical person in the U.S. economy. Select H for High-income nations.. The profit-maximizing output condition for producers equates the relative marginal cost of any two goods to the relative selling price of those goods; i.e.. One may also deduce the ratio of marginal costs as the slope of the production–possibility frontier, which would give the rate at which society can transform one good into another.

Select M for Middle-income nations.. economy based on advanced technology, Suppose C(x) measures an economy's personal consumption expenditure and x the personal income, both in billions of dollars. Chapter 5 will discuss the. In this lesson, you'll learn what economic output is as well as some related concepts. China, b. Japan ,c. Mongolia, d. North Korea 1.command economy 2. market-based economy, 3. command economy with limited market reforms i, What level of economic development is described by each of the following statements? [3]. Which type of economic system has the highest level of government control? Why is an economy's output, in essence, is also its income? The logic behind using the expenditure method is that if all the expenditures on final goods are added up, the sum should equal the total production because every produced good is eventually produced in some form or the other.

Please explain to me. You pay 4 percent of your income in state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined). [clarification needed].

A. money reserved for saving B. income that is less than its expenses C. high use of credit D. economic incentives Which type of economic system has the highest level of, a) Suppose the economy is characterized by the following behavioral equations: C = c0 + c1YD YD = Y – T I = b0 + b1Y Government spending is constant. This is usually paid in the form of wages and salaries; it can also be paid in the form of royalties, rent, dividends, etc. Output can be sub-divided into components based on whose demand has generated it – total consumption C by members of the public (including on imported goods) minus imported goods M (the difference being consumption of domestic output), spending G by the government, domestically produced goods X bought by foreigners, planned inventory accumulation Iplanned inven , unplanned inventory accumulation Iunplanned inven resulting from mis-predictions of consumer and government demand, and fixed investment If on machinery and the like. You also pay, What level of economic development is described by each of the following statements? The national income accounts are related to an economy’s final product. The value of the barber's output is 20*$10 =$200. a- income inequality b- educational opportunity c- income equity d- buying power My answer is a.

Output is the result of an economic process that has used inputs to produce a product or service that is available for sale or use somewhere else. Think of a simple example, then expand. $1000 B. Explain why an economy's output, in esence, is also its income. If we take growth into consideration, then most economists agree that there are three basic sources for economic growth: an increase in labour usage, an increase in capital usage and an increase in effectiveness of the factors of production. This identity is distinct from the goods market equilibrium condition, which is satisfied when unplanned inventory investment equals zero: GDP (gross domestic product) is the most popular measure of national output. Select L for Low-income nations. For example, Japan may trade its electronics with Germany for German-made cars. $800 C. Which of the following is a feature of a good budget? Output in economics is the "quantity of goods or services produced in a given time period, by a firm, industry, or country", whether consumed or used for further production.

You can view more similar questions or ask a new question. When a particular quantity of output is produced, an identical quantity of income is generated because the output belongs to someone. To avoid the issue of over-counting, one can also focus entirely on final sales, where, though not directly but implicitly, all prior stage of output creation are accounted for. the autonomous consumer spending in this economy is: A. A. money reserved for saving B. income that is less than its expenses C. high use of credit D. economic incentives Which type of economic system has the highest level of Economics Consider an economy with a constant nominal money supply, a constant level of real output Y … A. traditional economy B. market economy C. command economy D. Which of the following is a feature of a good budget? The concept of national output is essential in the field of macroeconomics.It is national output that makes a … (Income). Select H for High-income nations. National income accounting allows us to assess the health of an economy and formulate policies to maintain and improve that health.

Select M for Middle-income nations. If a foreign individual or firm bought a product from some other country, e.g., if an American firm bought a Cambodian manufactured good, then this expenditure cannot be counted in the consumer expenditures in American GDP since the output being purchased is foreign. Answer (1 of 1): Because the output is directly related to money circulated (spent), which, in essence, is also the revenue. Because income is a payment for output, it is assumed that total income should eventually be equal to total output.[4]. A. traditional economy B. market economy C. command economy D. mixed economy, Drag and drop the country names to classify them by type of economy that they have today. the autonomous consumer spending in this economy is: A. Its really the VALUE of an economy's output is also its income. In both these methods, one has to be wary of the fact that consumption includes all spending by households, but business investment does not include all spending by firms, because if it did this would result in massive double counting because many of the things firms buy are processed and resold to consumers.

You pay 4 percent of your income in state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined). Likewise, income can be sub-divided according to the uses to which it is put – consumption spending, taxes T paid, and the portion of income neither taxed nor spent (saving S). Your school SUBJECT is not the name of your school. [5]. Economics (/ ɛ k ə ˈ n ɒ m ɪ k s , iː k ə -/) is the social science that studies how people interact with things of value; in particular, the production , distribution , and consumption of goods and services .

$1000 B.

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