Read Jon Gartner - Rise and fall of GDP (2010). There are free pdf online and answer the questions

1.Is HDI a good measure of national well-being? Explain why yes/no.

2. If you were to improve GDP and HDI as concepts/measures, how would you modify/revise these indicators?

Suppose that, in an economy, every shop allows electronic payment by making more point of sales (POS) terminals available. What are the effects of this facility on the demand for money and on the
price level?

Annual manufacturing cost data (1000s) for four product lines are as follows:

Rank the product lines from lowest to highest in terms of manufacturing cost per unit. Total indirect costs of $10,8 million are allocated based on total direct cost. (Please show work)

Suppose you own a small maple syrup company which requires employees to feed wooden logs into large machines that burn the logs and boil water out of the sap.At current units of production, one machine and a worker working for a day can produce 100 bottles of maple syrup. A new machine could be rented for $1000/day while new workers can be hired for $100/day but having an additional machine would produce 90 bottles of maple syrup, while an additional worker would produce only 10 additional bottles of maple syrup. a. What is the fixed input and what is the variable input?

b. In the short run, which input would you use more of to increase output? Why?

c. In the long run, which input would you use more of to increase output? Why?

d. Assuming every additional machine produced 90 bottles per day and additional workers continued to produce 10 bottles per day, would this be considered economies of scale? Why or why not?

e. Why is the assumption in part (d) unrealistic?

With more natural disasters occurring, with rising political expectations that government will provide aid, and with the federal government shouldering more of the cost, are you comfortable with the implication that this could lead to a growing concentration of power in the federal government?

1. (10 pts) You just bought a house for $400,000. You put 20% down and financed the rest over 30 years at 6% nominal interest. Assuming equal monthly payments over the term of the loan, what are the monthly payments? What is the effective rate? (Chapter 4)

2. (10 pts) What would you need to invest today in an account that had a nominal rate of 8% compounded quarterly, if you wanted $12,000 in 4 years? What would be the investment required if the account compounded semi-annually? What is the effective rate of each investment? (Chapter 3)

3.

1. (10 pts) Assume the following cash flows: (Chapter 4)

Assuming an 9% interest rate, what is the value of A required to make the present value of the cash flows equal to 0?

Working with labor force statistics

You are looking over data on the U.S. labor force, employment, unemployment, persons not in the labor force, and discouraged workers from the November 2019 Current Population Survey. You are particularly interested in the problem of discouraged workers. You make several quick calculations.

First, you determine the official unemployment rate.

Second, you determine the unemployment rate if all discouraged workers are considered to be part of the labor force (and thus, unemployed).

Finally, you calculate what would happen to the official unemployment rate if 500 of the discouraged workers begin actively searching for work.

When you write a report on labor market dynamics, which of the unemployment rate measures will you choose as a gauge of the state of the labor market in November 2019? Why?

What are the key resources of an electrical service business?

15. If the central bank keeps the overnight rate unchanged, a drop in financial confidence will lead to…

(a)     Lower investment and net exports.

(b)     Unchanged investment and net exports.

(c)     Lower investment and unchanged net exports.

(d)     Unchanged investment and lower net exports.

15.  Choice:  

Explanation:  

16. Comparing the size of the monetary base and the money supply...

(a)     The two are equal because the banks prudently keep reserves equal to deposits.

(b)     The monetary base is typically bigger because it includes treasury bills.

(c)     The money supply is bigger because banks make loans.

(d)     The money supply is bigger because it includes treasury bills.

Assume that the economy is operating at full employment (long-run equilibrium). Use our AD and AS analysis to answer the following questions.

1. Graphically show the current economic state with an AD curve, a (short-run) AS curve and a long-run AS curve. Compare current GDP and potential GDP.