An economy produces three goods: houses, guns, and apples. The price of each is $1. For the purposes of this problem, assume that all exchange involving houses involves newly constructed houses.
(a) Households buy 10 houses and 90 apples, eating them. The government buys 10 guns. There is no other economic activity. What are the values of the different components of GDP (consumption, investment, government spending, exports/imports)?
(b) The next year, households buy 10 houses and 90 apples. The government buys 10 guns. Farmers take the seeds from 10 more apples and plant them. Households then sell 10 apples to France for $1 each and buy 10 bananas from Canada for $2 each, eating them too. What are the values of the components of GDP?
(c) Return to the economy in part 1a. The government notices that the two richest households consume 40 apples each, while the ten poorest consume one each. It levies a tax of 30 apples on each of the rich households and gives 6 apples each to the 10 poorest households. All other purchases by households and the government are the same as in (a). Calculate the components of GDP
Discuss some problems with using the unemployment rate as a barometer for the health of the labor market.
Discuss some problems with using the unemployment rate as a barometer for the health of the labor market.
Hours worked per worker has declined over the last 50 years yet hours per capita have remained roughly constant. How is this possible?
Hours worked per worker has declined over the last 50 years yet hours per capita have remained roughly constant. How is this possible?
Why are intermediate goods subtracted when calculating GDP under the production method?
Why are intermediate goods subtracted when calculating GDP under the production method?
Explain why the three methods of calculating GDP are always equal to each other.
Explain why the three methods of calculating GDP are always equal to each other.
How is data different at the machine level, versus the assembly level, versus the high language level?
How is data different at the machine level, versus the assembly level, versus the high language level?
What is Assembly code and why is it different from machine language? Why must there be a specific Assembly language for each hardware system?
What is Assembly code and why is it different from machine language? Why must there be a specific Assembly language for each hardware system?
In your own opinion, why are data types vital in computer science and why should we pay close attention to them in data science?
In your own opinion, why are data types vital in computer science and why should we pay close attention to them in data science?
