1. Pete grows wheat and sells it to Roger for $2. Then Roger turns it into...

1. Pete grows wheat and sells it to Roger for $2. Then Roger turns it into flour and sells it to John for $3. John takes the flour and also some sugar which he bought for $1 and eggs that he bought for $1.50 and bakes a cake which he sells to Keith for $10. Keith eats the cake and then drives his car into a swimming pool for some reason. How much is added to nominal GDP here?

2. Consider an economy that produces the following goods.

Fish quantity: 343

Fish price: 19

Coconut quantity: 497

Coconut price: 9

What is nominal GDP? (Round to the nearest whole number.)

Expert Solution

1)$10

GDP considers the cost of final goods and services.

2)Nominal GDP is simply equal to the sum of the current year price * quantity of all the goods.

=(343*19)+(497*9)

=6517 +4473

=$10986

Rahul Sunny answered 2 years ago

A farmer grows a bushel of wheat and sells it to a miller for $1.00. The...

A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and then sells the flour to a baker for $3.00. The baker uses the flour to make bread and sells the bread to an engineer for $6.00. The engineer eats the bread. What is the value added by each person? What is GDP?

A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His...

A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five hectares of land show diminishing returns, because some are better suited for wheat production than others. The first hectare can produce 1000 bushels of wheat, the second hectare 900, the third 800, and so on. Fill in the table given below to answer the following questions. How many bushels will each of the farmer’s five hectares produce? How much revenue will each hectare...

Suppose John grows $1 million in peanuts and sells them to Snappy's which uses them to...

Suppose John grows $1 million in peanuts and sells them to Snappy's which uses them to make $5 million in peanut butter. These two actions contribute _____ to GDP. Group of answer choices $5 million $1 million $4 million $6 million

4. The following is Jim’s production function for wheat. I 1 2

4. The following is Jim’s production function for wheat. I 1 2 3 4 5 6 7 8 9 10 TP 2 3.7 5.2 6.6 7.9 9.15 10.35 11.5 12.6 13.65 a. What is Jim’s demand for loanable wheat as a function of the real interest rate? b. What is Jim’s demand for loanable funds, as a function of the nominal interest rate, if the price of wheat is $10 today and will be $10 next year? c. What is...

Question 1: Roger Harkel, CEO of Bestafer, Inc. seeks to raise $2 million in a private...

Question 1: Roger Harkel, CEO of Bestafer, Inc. seeks to raise $2 million in a private placement of equity in his early stage venture. Harkel conservatively projects net income of $5 million in year 5 and knows that comparable companies trade at a price earnings ratio of 20X. What share of the company would a venture capitalist require today if her required rate of return was 50%? What if her required rate of return was only 30%? If the company...

H3 Co. is a farming corporation that grows and sells sugar beets. The company is publicly...

H3 Co. is a farming corporation that grows and sells sugar beets. The company is publicly traded on the stock market: however, management prefers to use variable costing for decision purposes. The company's books are adjusted to arrive at Absorption Income for financial reporting purposes. The company reported the following financial information for the past month: Variable Net Income: $2,000,000 Sales: 5,000 truckloads of sugar beets Fixed manufacturing costs rate per truckload: $500 Variable SGA costs per truckload: $100 Fixed...

Mr. Roger is 2 days postoperative of a thoracotomy for removal of a malignant mass in...

Mr. Roger is 2 days postoperative of a thoracotomy for removal of a malignant mass in his left chest. His pain is being managed via an epidural catheter with morphine ( an apioid analgesic).As the nurse assumes care of Mr. Roger's, he is alert and fully oriented, and states that this current pain is 2 on a 1-to-10 scale. His vital signs are 37.8-92-12,138/82.(Learning objective 6). a. what are benefits of epidural versus systematic administration of opioids? b. The nurse...

You build a transformer with 100 turns of wire on side 1, and 500 turns on...

You build a transformer with 100 turns of wire on side 1, and 500 turns on side 2. A) If you put a voltage of 100 V (AC) on side 1, what voltage would you get on side 2? B) If you put a voltage of 100 V (AC) on side 1 with a current of 1 Amp (AC), what current would you get on side 2? C) If you put 100 V of DC voltage on side 1, what...

1. An ideal transformer has a primary with 25 turns and secondary with 15 turns. The...

1. An ideal transformer has a primary with 25 turns and secondary with 15 turns. The load resistor is 24 ? and the source voltage is 85 Vrms.What is the rms electric potential across the 24 ? load resistor? Answer in units of Vrms 2. A transformer consists of two coils of wire wound on a common toroidal iron core. The mutual inductance of the pair is 483 mH and the current in the first coil decreases from 29 A...

The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are...

The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of $50,400, net fixed assets of $248,500, current liabilities of $30,800, and long-term debt of $99,100. a. Calculate Caraway's stockholders' equity. b. What is the firm's net working capital? c. If Caraway's current liabilities consist of $20,100 in accounts payable and $10,700 in...

Question