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Q1.One day, Barry the Barber collects $400 for haircuts. Over this day, his equipment deteriorates in value by $50. Of the remaining $350, Barry sends $30 to the government in sales taxes, takes home $220 in wages, and retains $100 in his business to add new equipment in the future. From the $220 that Barry takes home, he pays $70 in income taxes. Based on this information, compute Barry’s contribution to the following measures of income:
(i) Gross domestic product
(ii) Net national product
(iii) National income
(iv) Personal income
(v) Disposable personal income
Q1.Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is Ghc4. In year 2, the quantity produced is 4 bars and the price is Ghc5. In year 3, the quantity produced is 5 bars and the price is Ghc6. Year 1 is the base year.
(i) What is the nominal GDP for each of these years
(ii) What is the real GDP for each of these years?
iii) Calculate the GDP deflator for each period
(iv) What is the % growth rate of real GDP from year 1 to year 2?
(v) What is the % growth rate of nominal GDP from year 1 to year 3
Q1.What contributes more to GDP- production of an economy car or a luxury car? Why?
Q2.Explain why an economy’s income must equal its expenditure
Q3.A farmer sells cocoa to a beverage producer for Ghc2. The producer uses the cocoa to make Milo and sells it for Ghc3. What is the total contribution of these transactions to GDP?
Q4.GDP does not include the value of used goods that are resold. Why would including such transactions make GDP a less informative measure of economic well-being?
Q5.G does not include spending on transfer payments. Why are transfer payments excluded?
Q6.A few years ago, John paid Ghc500 to put together a record collection. Today, she sold her albums at a garage sale for Ghc100. How does this sale affect GDP?
how can oligopoly cause market failure
Assume investment spending is very interest inelastic and money demand is very interest elastic. With the help of IS LM diagram explain the effect of cut in income tax rate on investment spending , money demand, and budget surplus and explain the adjustment process from one equilibrium to another
If the fertility rate in Nigeria is very high. How will this affect economic growth and the standard of living?,
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Use the following information to answer the question below: The demand and supply curves are represented by the following equations: Qd=100-P and Qs=50+P . The equilibrium price is?
Creative destruction is an innovation theory, which was first coined by Austrian economist Joseph Schumpeter in 1942. The theory proposes…
Is zero government intervention economy system is possible or not ?
