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    GDP growth rate

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    CH 8/ Q2. Suppose an economy's real GDP is $30,000
    in year 1 and $31,200 in year 2. What is the growth rate of
    its real GDP? Assume that population is 100 in year 1 and
    102 in year 2. What is the growth rate of GDP per capita?

    CH 8/Q11. If the CPI was 110 last year and is 121 this
    year, what is this year's rate of inflation? What is the "rule
    of 70"? How long would it take for the price level to double
    if inflation persisted at (a) 2, (b) 5, and (c) 10 percent per
    year?

    CH20/ Q2. Graph the accompanying demand data, and
    then use the midpoint formula for Ed to determine price
    elasticity of demand for each of the four possible $1 price
    changes. What can you conclude about the relationship between
    the slope of a curve and its elasticity? Explain in a
    nontechnical way why demand is elastic in the northwest
    segment of the demand curve and inelastic in the southeast
    segment.

    Product Quantity
    Price Demanded
    $5 1
    4 2
    3 3
    2 4
    1 5

    CH22/ Q7. A firm has fixed costs of $60 and variable
    costs as indicated in the table on the following page.
    Complete the table and check your calculations by referring
    to question 4 at the end of Chapter 23.

    a. Graph total fixed cost, total variable cost, and total cost.
    Explain how the law of diminishing returns influences
    the shapes of the variable-cost and total-cost curves.
    b. Graph AFC, AVC, ATC, and MC. Explain the derivation
    and shape of each of these four curves and their
    relationships to one another. Specifically, explain in
    nontechnical terms why the MC curve intersects both
    the AVC and the ATC curves at their minimum points.
    c. Explain how the location of each curve graphed in
    question 7b would be altered if (1) total fixed cost had
    been $100 rather than $60 and (2) total variable cost
    had been $10 less at each level of output.

    CH3/ Q6. "In the corn market, demand often exceeds supply and supply
    sometimes exceeds demand." "The price of corn rises
    and falls in response to changes in supply and demand." In
    which of these two statements are the terms "supply" and
    "demand" used correctly? Explain.

    CH2/ Q2. What are economic resources? What categories do economists
    use to classify them? Why are resources also called
    factors of production? Explain: "If resources were unlimited
    and freely available, there would be no subject called
    economics."

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    Solution Summary

    The response addresses the queries posted in 1526 words with references.

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