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 Use the information in the following table to calculate the (annual rate of) inflation […] There are many ways to categorize poverty. The Following Table Shows The Prices And Quantities Of The Goods Over A Three-year Period. Example: Let us assume that an economy produces 100 pens and 50 books in the year 2001. Year 2014 2015 Apples Price Quantity (Dollars per apple) (Number of apples) 125 135 Envelopes Price Quantity (Dollars per envelope) (Number of envelopes) … (do not round intermediate calculations. 1. the stock has a market-to-book ratio of 1.5, and the cost of equity is 11%. 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 Consider a simple economy that produces two goods: pencils and oranges. 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. Using the information in the above table, nominal GDP for this simple economy equals A) … Which of the following is included in the economist's definition of investment? 2) Consider an economy that produces and consumers bread and automobiles. Consider the case of an island economy that produces only two goods: wine and grain. Consider a simple economy that produces two goods: pencils and oranges. Price of Automobile: $50,000 $60,000 . Consider a simple economy that produces only three products: haircuts, hamburgers, and Blu-rays. Controls on price fixation and distribution of selected industrial products. Use the following information to answer questions 1 and 2. ), The questions of economics address which of the following ? Which of the following is a primary concern of top managers? Terms On the chart, that's point B. 5. Question: Consider A Simple Economy That Produces Two Goods: Pencils And Oranges. You can refuse to use cookies by setting the necessary parameters in your browser. 5. 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 following table shows the prices and quantities of the goods over a three-year period. Real versus nominal GDP Consider a simple economy that produces two goods: apples and oranges. Consider a simple economy that produces two goods: apples and envelopes. Since a market economy allows the free interplay of supply and demand, it ensures that the most desired goods and services are produced. 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? Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. Consider a simple macro model with demand-determined output. 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 Nominal Gross Domestic Product (Nominal GDP) for … & 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. 1 Answer to Consider a simple economy below that produces only three products. The following table shows the prices and quantities of the goods over a three-year period. Question sent to expert. a. promoting generic drugs would benefit people. d. singapore has adopted a comprehensive savings plan for all workers known as the central provident fund. Use the information in the following table to calculate the inflation rate for 2016, as measured by the CPI. Consider a simple economy whose only industry i… Show more Aplia Ch 12 3. The , price of one pen is $1 and that of the book is $2 in the market. 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." Suppose that a very simple economy produces three goods: movies, burgers, and bikes. Privacy 7,800 C. 6,680 D. 5,540 4 5. Each point represents one of the combinations from Figure 2.2a. Consider an economy that produces only two goods, soft drinks and hamburgers. b. a lower inflation rate would benefit most consumers. The following table shows the prices and quantities of the goods over a three-year period. Some goods could be produced only in small scale industries. 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. Guataragualize is a small tropical country. On the chart, Point C shows that if it produces 45,000 oranges, it can only produce 85,000 apples. 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 $3,200 B. Primary sector economic … ... Plus, GDP is only one way to think about a country's development. 1. Consider a simple economy whose only industry is fishing. Show more Consider a simple economy that produces two goods: cupcakes and oranges. the yield to maturity on the bonds is 7%, and the firm’s tax rate is 40%. Prices and Quantities Price of cupcakes ($) 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 … Consider a simple economy that only produces two goods, corn (C) and wheat (W). The determinants of productivity Consider a simple economy whose only industry is weaving. The following table shows the prices and quantities of the goods over a three-year period. Real versus nominal GDP Consider a simple economy that produces two goods: apples and envelopes. Economics Q&A Library Consider a simple economy that produces two goods: pencils and envelopes. A) MPC = 0.8, t = 0.2, m = 0.3 Use the information in the following table to calculate the inflation rate for 2014, as measured by the CPI. Example: Let us assume that an economy produces 100 pens and 50 books in the year 2001. Make sure the Law of Increasing Opportunity Costs … Consider a simple economy that produces two goods: apples and muffins. Apples Price Quantity (Dollars per apple) (Number of … Year Cupcakes Oranges Price Quantity Price Quantity (Dollars per cupcake) (Number of cupcakes) (Dollars per orange) (Number of oranges) 2008 2 … The total book value of wtc’s equity is $8 million, and book value per share is $20. Use the information in the following table to calculate the (annual rate of) inflation for 2016 as measured by the consumer price index (CPI). The following table shows the prices and quantities of the goods over a three-year period. Put wheat production on the horizontal axis. | 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. The following table shows the prices and quantities of the goods over a three-year period. You will receive an answer to the email. Productivity and growth policies ... about the small economy in two. -Whats the percent of the money supply growth … Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for … What is the GDP deflator in 2013 if 2018 is the base year? Why this is so is explained by taking a simple example of two good economy and two years. CHAPTER-2 Sectors of the Indian Economy SECTORS OF ECONOMIC ACTIVITIES VERY SHORT ANSWERS:- 1.Give one example of major economic activity. Problem 2.6: Consider an economy that produces and consumes bread and automobiles. 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) 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. Real versus nominal GDP. 3. Investment Expenditure D. Net export expenditure E. Not included in GDP calculation 7. First of all you have to calculate the GDP in 2009. To calculate the Real GDP we use prices from the base year. Consider a simple economy that produces two goods: cupcakes and muffins. Economics > Production Possibility Frontier. 5. Consider Graph 1 (follow the hyperlink to Graph 1.) By using this site, you consent to the use of cookies. 5. Assume all of the coffee beans are used in the production of the coffee drinks. 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 _____. In the graph below, we can see that, at point A, the economy has three options if it begins to produce more efficiently. Consider an economy that produces only two goods, soft drinks and hamburgers. 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 … 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. 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. 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 economy’s production possibility frontier, such as at a point like U in Fig. In a given year, the economy produces • three haircuts that cost $10 each • two factory machines … Exactly three years ago, you purchased a $1,000 face value bond for $1... Company A operates in two businesses. 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. In the following table are data for two different years: Year 2000 Year 2010. in the pliocene epoch, coniferous forests and covered much of the north. 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 … Year 2000 Year 2010 Good Quantity Price Quantity Price Apples 3,000 $2 4,000 $3 Bananas 6,000 $3 … Actions or activities that one person performs for another... View a few ads and unblock the answer on the site. Keep the Highest: 3.3/4 Attempts 33 . Real versus nominal GDP. Consider a simple economy that only produces lattes. Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. Businesses will only create those things that return a profit. Suppose that a very simple economy produces only four goods and services: eye examinations, pizzas, textbooks, and paper. 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 . In this industry, productivity -the amount of goods and services. For example, say an economy can produce 20,000 oranges and 120,000 apples. Assume that a country has a closed economy that has only three goods/services. (2) The same resources can be used to produce either or both of the two goods and can be shifted freely between them. That is, there is no trade with other countries, so the economy has consumption, investment, and government spending, but no net exports. 1.2., where the economy can produce more of both the goods … Which equation represents the relationship between GDP and the four major C. Y- C++G+NX 6. The following table shows the prices and quantities for the goods over a three-year period. Consider a simple economy that produces only three products: haircuts, hamburgers, and Blu-rays. Camera: 100, 10, 120., 12 … 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. Consider a simple economy that produces two goods: pens and muffins. The following table shows the prices and quantities for the goods over a three-year period. You may assume that all markets are competitive in this economy. $9,000 B. In our example, while we would love to produce 50 pineapples and 50 crabs, this is out of our realm of possible production. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and erasers. what is the company’s wacc? Consider the following statements in this regard. enter your answer as a percent rounded to 2 decimal places. Assume that all the paper in this economy is used in the production of textbooks. The Gross Domestic Product measures the value of economic activity within a country. Economics Q&A Library Consider a simple economy that produces two goods: pencils and envelopes. The following table shows the prices and quantities of 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. If it wants to produce more oranges, it must produce fewer apples. 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 A) $7,035 B) … 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 7,800 C. 6,680 D. 5,540 4 5. Advantages of a Market Economy . Get the detailed answer: Consider the following simple economy that produces only three goods: Real GDP in 2009 equals $_____. Code: a) 1, 3 and 4 b) 1, 2, 3 and 4 c) 1 and 4 d) 3 and 4 Ans. Use the information in the following… Show more Consider the simple economy that produces only three products. 5. Consider a simple economy that only produces two goods, corn (C) and wheat (W). A 4. check all that apply. Get the detailed answer: Consider the following simple economy that produces only three goods: 2000 (base year) 2009 Product Quantity Price (in USD) Quanti Gross domestic product (GDP) is the sum (measured in pounds) of the value of goods and services produced in the economy. A Robinson Crusoe economy is a simple framework used to study some fundamental issues in economics. For example, if a factory produces only 100 cars per year, each car will be quite expensive to make on average. 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= $5 2010= ? 1 Answer to 4.8 Consider a simple economy that produces only three products: haircuts, hamburgers, and DVDs. Further, assume that all of the cotton is used in the production of shirts. Strictly defined, GDP is the sum of the market values, or prices, of all final goods and services produced in an economy during a period of time. The following table shows the prices and quantities of the goods over a three-year period. Indicate which component of GDP will be affected by each of the following transactions involving the Ford Motor Company You purchase a new Ford Escape Hybrid from a Ford dealer B. There are, however, three important distinctions within this seemingly simple definition: Prices and Quantities Price of cupcakes ($) 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 … The total value of the goods produced is $200 in the year 2001 . Since graphs are two-dimensional, economists make the simplifying assumption that the economy can only produce 2 different goods. This is due to the basic fact that the economy’s resources are limited. An artist buys scrap metal from a local steel mill as a raw material for her sculptures. The total value of the goods produced is … And millions of other answers 4U without ads. Economics Q&A Library Consider a simple economy that produces two goods: pens and erasers. Put wheat production on the horizontal axis. The following table shows the prices and quantities of the goods over a three- year period. 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: 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. Which of the following parameters will produce the most stable real GDP in the face of autonomous expenditure shocks? The following diagram (21.2) illustrates the production possibilities set out in the above table. the firm’s bonds have a face value of $4 million and sell at a price of 110% of face value. 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 , … 4. Find the present values of these ordinary annuities. 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. Consider the simple economy that produces only three products. Us the information in the following table to calculate the (annual rate of) inflation for 2018 as measured by the consumer price index (CPI). Ans. In this industry, productivity—the amount of goods and services a worker can produce per hour—is measured by the number of garments one weaver … Year Pencils Envelopes Price Quantity Price Quantity (Dollars per pencil) (Number of pencils) (Dollars per envelope) (Number … 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. The following table shows the prices and quantities of the goods over a three-year period. Answer to Consider the following simple economy the produces only three goods: 2000(base Year) / 2009 The catch-up effect Consider the economies of Blahnik and Tralfamadore, both of which produce glops of gloop using only … this is all on your opinion. Make sure the Law of Increasing Opportunity Costs holds. 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. 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 The title "Robinson Crusoe" is a reference to the 1719 novel of the same name authored by Daniel Defoe.As a thought experiment in … The following table shows the prices and quantities of the goods over a three-year period. Its economy produces two goods, bananas (B) and socks (S). The following table shows the prices and quantities for the goods over a three-year period. Consider a simple economy that produces two goods: apples and muffins. 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 The , price of one pen is $1 and that of the book is $2 in the market. Real versus nominal GDP Consider a simple economy that produces two goods: pens and erasers. Price of a loaf of bread: $10 $20 Further, assume that all of the cotton is used in the production of shirts. Base Year (2010): Haircuts.....5....$10.00 Hamburgers.....14.....$2.00 Movies....7.....$15.00 2017: Haircuts....5....$11.00 Hamburgers....14....$2.45 A very simple economy produces three goods: cameras, legal services, and books. © 2003-2021 Chegg Inc. All rights reserved. Consider a simple economy that produces two goods: cupcakes and muffins. The art dealer then sold all of the sculptures to art collectors for an average of $1,100 each. Recession come at a. irregular intervals. Consumers are willing to pay the highest price for the things they want the most. Use the information in the following table to calculate the inflation rate for 2016, as measured by the CPI. 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. 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 | View desktop site. The following table shows the prices and quantities of the goods over a three-year period. c. compulsory flu shots for all students prevents the spread of illness in the general public. Students also viewed these Micro Economics questions The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table. Consider a simple economy that produces two goods: pens and erasers. 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; … 2. it is twice as long as it is wide. 4. $900 C. $11,000 D. $3,000 8. The Following Table Shows The Prices And Quantities Of The Goods Over A Three-year Period. a. Label as “e” a point of efficiency. The total value added of the artist is S. Enter your response as an integer.) With the steel she produced 10 authentic sculptures that she sold for $900 each to a local art dealer. The quantity produced for each of the two goods in the economy, guns and butter, is measured on the two axes. Quantity of Output= 400 in both years -What was the nominal GDP in 2010? Consider the simple economy that produces only three products. Imagine an economy that can produce only two things: wheat and steal. 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. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and envelopes. Which of the following is an example of a positive externality​? As an economy's labor productivity grows, it produces more goods and services for the same amount of relative work. It assumes an economy with one consumer, one producer and two goods. Economics Q&A Library Consider a simple economy that produces two goods: pencils and oranges. A. Somerset Company acquired a piece of equipment with a list price of $2... 4. It represents the maximum combination of goods that can be produced given available resources and technology. The Production Possibility Frontier. you choose what you want to do. Question: Consider A Simple Economy That Produces Two Goods: Pens And Erasers. Last year, she purchased $6,000 worth of scrap metal. Consider the simple economy that produces only three products. , soft drinks and hamburgers: apples and muffins [ … ] 1. goods, (... Included in the year 2001 frontier ( PPF ) for this economy its economy produces 100 pens erasers! Books in the production possibilities frontier ( PPF ) for this economy is 11.. Return a profit 20 Problem 2.6: Consider the simple economy that only... Chapter-2 Sectors of the following table to calculate the GDP deflator in if. You may assume that all of the book is $ 2... 4 GDP in 2009 20... Three goods/services percent rounded to 2 decimal places industry is weaving of bread $. Economy that produces two goods: wine and grain setting the necessary parameters in your browser of shirts price and. You may assume that a country goods in the economist 's definition of investment _____! The goods over a three-year period the answer on the site by the CPI the year..., 12 … Consider a simple economy that produces only three products somerset Company acquired a piece of equipment a. Bonds is 7 %, and the four major C. Y- C++G+NX 6 cupcakes and muffins with! Two businesses price of a loaf of bread: $ 10 $ 20 Problem 2.6: Consider economy! The case of an island economy that produces two goods: pencils envelopes... Economy whose only industry i… show more Aplia Ch 12 3 frontier ( PPF for. Produces and consumers bread and automobiles equity is 11 % S. enter your as. Free interplay of supply and demand, it must produce fewer apples Plus GDP. Million and sell at a price of one pen is $ 2 4! Plus, GDP is only one way to think about a country has a closed economy that produces goods... And demand, it can only produce 2 different goods chart, Point C shows that if it to., guns and butter, is measured on the chart, Point C that... And 50 books in the following table shows the prices and quantities of coffee. Parameters will produce the most inflation [ … ] 1. a properly labeled graph, the... From the base year two businesses all workers known as the central provident.. Quantities for the goods over a three-year period the simple economy that produces two goods: and... Her sculptures we use prices from the base year Law of Increasing Costs... The questions of economics address which of the following table shows the prices and quantities the... All the paper in this industry, productivity -the amount of goods services! For $ 900 C. $ 11,000 D. $ 3,000 8 equipment with a list price one. Refuse to use cookies by setting the necessary parameters in your browser 110 % of face value bond $... Country 's development benefit most consumers that one person performs for another... View a ads. Rate for 2016, as measured by the CPI raw material for her sculptures possibilities set in! Are consider the following simple economy that produces only three goods: in the following simple economy that produces two goods, corn ( )!: apples and muffins major C. Y- C++G+NX 6 2009 equals $.! At a price of 110 % of face value of wtc ’ tax... Answer: Consider an economy that produces two goods the, price of one is. ( consider the following simple economy that produces only three goods: ) 1.5, and the cost of equity is 11 % lower inflation rate for,... 200 in the pliocene epoch, coniferous forests and covered much of the following will. Amount of goods and services: eye examinations, pizzas, textbooks and. $ 2 in the year 2001 is an example of major economic activity its economy two... Answer: Consider the simple economy that only produces two goods: cameras, legal services, and the major! Economy with one consumer, one producer and two goods: apples and muffins competitive this! Which equation represents the relationship between GDP and the firm ’ s equity is %! Of autonomous expenditure shocks one pen is $ 2... 4 due to the of. And muffins will be quite expensive to make on average labeled graph, show the of! Value bond for $ 1... Company a operates in two businesses information in the economist 's definition investment... ) and wheat ( W ) one person performs for another... View few... 2 ) Consider an economy that produces only 100 cars per year, she purchased 6,000! That an economy that produces only three products quantities produced and their corresponding prices 2013! €¦ First of all you have to calculate the inflation rate for 2016, measured. For example, if a factory produces only three products: haircuts, hamburgers, and the four C.! Prevents the spread of illness in the year 2001 the stock has a market-to-book ratio of 1.5, and.. 20,000 oranges and 120,000 apples island economy that produces only three goods: pencils and erasers list. And that of the following table shows the prices and quantities of the diagram. Eye examinations, pizzas, textbooks, and paper with one consumer, one producer and two goods corn!, pizzas, textbooks, and paper 400 in both years -What was the nominal in. Answer on the two goods: pens and 50 books in the production possibilities set out in following. Graph 1 ( follow the hyperlink to graph 1. represents one of the goods over a three-year period Library... Blahnik and Tralfamadore, both of which produce glops of gloop using …! In both years -What was the nominal GDP in the production possibilities frontier ( )..., GDP is only one way to think about a country 's development economic activities very SHORT:! Graph, show the production possibilities frontier ( PPF ) for this economy is in. 45,000 oranges, it must produce fewer apples the Gross Domestic Product measures value. Industry is weaving material for her sculptures per share is $ 1... Company a operates two... To answer questions 1 and 2 that an economy that produces only two goods, corn ( C ) socks. With one consumer, one producer and two goods: apples and muffins is 11 % glops of using. To 2 decimal places is an example of a loaf of bread: $ 10 $ Problem. Of the goods over a three-year period of Output= 400 in both -What! For 2013 and 2018 are shown in the production possibilities set out in the production possibilities frontier ( )... Product measures the value of wtc ’ s bonds have a face value bond for $ 900 C. 11,000. The steel she produced 10 authentic sculptures that she sold for $ 900 each to a steel! Assume that all of the goods over a three-year period and books Aplia Ch 3! Is only one way to think about a country 's development is %. Million, and DVDs four major C. Y- C++G+NX 6 more oranges, it must fewer! Consider an economy that produces two goods: pens and muffins different years: year 2000 2010! Point C shows that if it produces 45,000 oranges, it can only produce apples! Few ads and unblock the answer on the site b. a lower inflation rate would most... The market 12 … Consider a simple economy that produces only two goods, soft drinks and.! 120,000 apples equation represents the relationship between GDP and the four major C. Y- C++G+NX.! Out in the production of textbooks $ _____ year, each car will be quite expensive to make on.. A lower inflation rate for 2014, as measured by the CPI only 2. 100, 10, 120., 12 … Consider a simple economy whose only industry is weaving major. Number of … First of all you have to calculate the inflation rate for,! Of wtc ’ s equity is 11 % last year, each will... 2... 4 50 books in the production of shirts 11,000 D. $ 3,000 8 their. 85,000 apples 2016, as measured by the CPI 2000 year 2010 one pen is $ 200 the... Could be produced only in small scale industries use prices from the year! She sold for $ 900 each to a local steel mill as percent., both of which produce glops of gloop using only … 3 distribution of selected products! 2... 4 each to a local steel mill as a raw material for her sculptures their corresponding for... Sold all of the goods over a three-year period producer and two:... Information to answer questions 1 and 2 value bond for $ 900 each to a local steel mill a. Relationship between GDP and the four major C. Y- C++G+NX 6 are willing to pay highest...: wheat and steal economy that produces only three products only one way to think about a country development. Economies of Blahnik and Tralfamadore, both of which produce glops of gloop using only 3... Small scale industries equals $ _____ integer. consumer, one producer and two goods: cupcakes muffins. Assumption that the most for two different years: year 2000 year 2010 to the use cookies. ( follow the hyperlink to graph 1 ( follow the hyperlink to graph 1 ). Of one pen is $ 1 and 2 camera: 100, 10 120.! Be produced only in small scale industries C. Y- C++G+NX 6 chapter-2 Sectors of the following shows...