...Ursula was providing her landscaping services to Tony. Thanks to her, Tony has a wonderful garden, filled with beautiful blooming flowers year-round. After dating for some time, they decided to tie the knot. Will this event − Tony marrying his landscaper/gardener − lead to a rise, fall or no change in Gross Domestic Product? Explain your answer why or why not. 2. (10 points) Are each of the following included or excluded in this year’s GDP? Explain your reasons for including or excluding each item. If it is included, explain which component of GDP do the different items belong. a. Social security payments received by a retired factory worker. b. Payments for services performed by a dentist. c. The money received by Susan when she sells her economics textbook to a book buyer. d. The monthly allowance a college student receives from home, which is then spent on purchasing textbooks. e. Rent received on a two-bedroom apartment. f. The money received by Luke when he resells his current-year-model Honda automobile to Jim. g. The sale of a college textbook. h. A $2 billion increase in business inventories. i. The purchase of 100 shares of General Motors common stock. j. A resident of Nevada just bought a new single-family home. 3. (Extra Credit: 5 points) According to the New York Times (November 18, 2006), the number of car producers in China is increasing rapidly. The newspaper reports that “China has more car brands now than the United States. . . . But while car sales have climbed 38...
Words: 1873 - Pages: 8
...U.S. is the second largest importer of base metals after China (Indexmundi.com, 2013). It is the third largest exporter of base metals after China and Germany (Indexmundi.com, 2013). We can make the assumption that this makes U.S. a net importer of base metals. Base metals are mainly used as (a) input by manufactures producing consumer goods and (b) for infrastructure projects. They themselves are not demanded directly by consumers. If global prices of base metals were to go up, in theory, the U.S. will first see an impact on the "input" side of the economy (figure 7). Production costs will go up and producers will pass this one to the end consumer (P1 to P2). Raw material price increase will shock the supply to shift left (AS1 to AS2) and negative output gap increases (Y1-Y* to Y2-Y*). With increased prices, aggregate demand will go down. The AD curve will shift down (AD1 to AD2). This will result in a fall of real GDP, increase in the negative output gap (Y3-Y*) and prices may fall somewhat to P3. If there is no supply side change, typically, increases in the negative output gap will cause inflation to go down. The only time inflation increases with increasing negative output gap is when the AS curve shifts left and AD shifts down as well. To substantiate this, the following data has been presented as below, with main emphasis in the 2007-2008 periods: 1. Figure 8a (Research.stlouisfed.org, 2013 and Databank.worldbank.org, 2013) shows that from around 2008 the U...
Words: 674 - Pages: 3
...make available the applicable questions for this case contained in the Case Questions section of the online Instructor’s Manual. Purpose This case analyzes alternative pay for performance compensation plans for group practice physicians. Several different approaches are used to measure economic (financial) performance. In addition, compensation can be based on both financial and non-economic factors. Students must not only consider the impact of various approaches on compensation amounts, but also consider the issues of fairness and creation of incentives that benefit the practice as a whole. Complexity The case is moderately complex, especially for students who have little actual work experience and hence a limited understanding of “real world” compensation. There is a lot of number crunching, but the model does most of the work. Model Description The model (filename CASE11 for students and INCASE11 for instructors) takes much of the busywork out of the case, so it enables students to spend more time on interpretation and evaluation. Like most case models, the student and instructor versions differ only in regards to the input data. The instructor’s version contains the complete base case inputs, while these inputs are zeroed out in the student version of the model....
Words: 2311 - Pages: 10
...evaporated and drawn up, to return as rain. From year to year these changes may be scarcely perceptible. But one day, when the banks are thoroughly weakened and the rains long and heavy, the river floods, bursts its banks, and may take a new course. This represents the dialectical part of Marx’s famous theory of dialectical (or historical) materialism." Historical materialism is a methodological approach to the study of society, economics, and history first articulated by Karl Marx (1818–1883) as the materialist conception of history. It is a theory of socioeconomic development according to which changes in material conditions (technology and productive capacity) are the primary influence on how society and the economy are organised. Historical materialism looks for the causes of developments and changes in human society in the means by which humans collectively produce the necessities of life. Social classes and the relationship between them, plus the political structures and ways of thinking in society, are founded on and reflect contemporary economic activity. Since Marx's time, the theory has been modified and expanded by thousands of Marxist thinkers. It now has many Marxist and non-Marxist variants. Objectives of Study: • To define Historical Materialism. • To discuss about the basic philosophy behind the concept of historical Materialism by Karl Marx. • To study about the Recent Versions of Historical Materialism. • To findout the limitations of the Concept...
Words: 3080 - Pages: 13
...to illustrate the principle that a.|goods are scarce.| b.|people face tradeoffs.| c.|income must be earned.| d.|households face many decisions.| ____ 2. Moira decides to spend two hours taking a nap rather than attending her classes. Her opportunity cost of napping is a.|the value of the knowledge she would have received had she attended class.| b.|the $30 she could have earned if she had worked at her job for those two hours.| c.|the value of her nap less the value of attending class.| d.|nothing, since she would valued sleep more than attendance at class.| ____ 3. An increase in the overall level of prices in an economy is referred to as a.|the income effect.| b.|inflation.| c.|deflation.| d.|the substitution effect.| ____ 4. An economic outcome is said to be efficient if the economy is a.|using all of the scarce resources it has available.| b.|conserving on resources, rather than using all available resources.| c.|getting all it can get from the scarce resources it has available.| d.|able to produce more than what is currently being produced without additional resources.| ____ 5. When an economy is operating at a point on its production possibilities frontier, then a.|consumers are content with the mix of goods and services that is being produced.| b.|there is no way to produce more of one good without producing less of the other.| c.|equal amounts of the two goods are being produced.| d.|All of the above are correct.| Figure 2-8 |Panel (a)||Panel (b)| || ____ 6...
Words: 2746 - Pages: 11
...For the past 10 years, there has been a decline in the level of economic growth in the U.S. This disappointment in economic growth in this country has been affected by various factor that have contributed to the change. Some of the factors that have contributed to the change in the U.S. level of economic growth include demographic changes, the level of productivity, and intensity (number of working hours per day). Demographic changes has been found to be a major contributing factor in this case. The percentage of working American citizens who are young enough not to retire and old enough not to be in school is not growing anymore (Leonhardt, 2016, p. 10). In 2011, only approximately 53% of the American population has been having ages of between...
Words: 1203 - Pages: 5
...age people are effectively economically inactive, for instance students , people on sickness and disability allowance, long term unemployment , early retirement , mothers looking after children at home. Moreover, an increase in the dependency ratio can cause fiscal problems for the government , a high dependency ratio can cause serious problems for a country if a large proportion of a government expenditure is health and social security and education. Another reason is in developing countries a large size of people associated to agraiculture and there is less surity of the salary and nomally they could not pay their taxes and moreover they always former have many children means more form hand. It is inevitable necessary that prudent economic policies are needed for the attainment of their development goal the biggest problem is that most developing countries depend on international finance such as world bank and they hardly generate enough domestic revenue. It is very important to know the dependency ratio of a country, economically active pay much income tax corporation tax and to a lesser extent. Statistics indicate that whiles the developed world have about 2 dependants to a working person, that of the less developed world is about 6 dependants to a working person (Martin Schnitzer). the alarming demographic feature has been the concern of some well-meaning demographers with regard to it effects such as overcrowding among a lot , one of the demographic distinction ...
Words: 982 - Pages: 4
...still matter to the health of the world economy. Higher oil prices since 1999 – partly the result of OPEC supply-management policies – contributed to the global economic downturn in 2000-2001 and are dampening the current cyclical upturn: world GDP growth may have been at least half a percentage point higher in the last two or three years had prices remained at mid-2001 levels. Fears of OPEC supply cuts, political tensions in Venezuela and tight stocks have driven up international crude oil and product prices even further in recent weeks. By March 2004, crude prices were well over $10 per barrel higher than three years before. Current market conditions are more unstable than normal, in part because of geopolitical uncertainties and because tight product markets – notably for gasoline in the United States – are reinforcing upward pressures on crude prices. Higher prices are contributing to stubbornly high levels of unemployment and exacerbating budget-deficit problems in many OECD and other oil-importing countries. The vulnerability of oil-importing countries to higher oil prices varies markedly depending on the degree to which they are net importers and the oil intensity of their economies. According to the results of a quantitative exercise carried out by the IEA in collaboration with the OECD Economics Department and with the assistance of the International Monetary Fund Research Department, a sustained $10 per barrel increase in oil prices from $25 to $35 would...
Words: 6052 - Pages: 25
...projections for 27 European countries, 2002–2052: impact of international migration on population ageing Projections de population et de population active pour 27 pays europeens ´ 2002–2052: impact de la migration internationale sur le vieillissement de la population Jakub Bijak Æ Dorota Kupiszewska Æ Marek Kupiszewski Æ Katarzyna Saczuk Æ Anna Kicinger Received: 8 August 2005 / Accepted: 31 March 2006 / Published online: 2 March 2007 Ó Springer Science+Business Media B.V. 2007 Abstract Population and labour force projections are made for 27 selected European countries for 2002–2052, focussing on the impact of international migration on population and labour force dynamics. Starting from single scenarios for fertility, mortality and economic activity, three sets of assumptions are explored regarding migration flows, taking into account probable policy developments in Europe following the enlargement of the EU. In addition to age structures, various support ratio indicators are analysed. The results indicate that plausible immigration cannot offset the negative effects of population and labour force ageing. Keywords Population projections Æ Labour force projections Æ International migration Æ Population ageing Æ Europe ´ ´ Resume Des projections de population et de population active sont presentees ´ ´ ´ ´ ´ ˆ pour 27 pays Europeens pour la periode 2002–2052, avec un interet particulier pour l’impact de la migration internationale sur la dynamique des populations. A partir de...
Words: 16895 - Pages: 68
...PACIFIC FOUNDATION OF CANADA _________________________________________________ 2 ABOUT THE NATIONAL OPINION POLL: CANADIAN VIEWS ON ASIA ________________________________ 2 METHODOLOGY KEY FINDINGS ___________________________________________________________________________________________ 2 ____________________________________________________________________________________________ 3 EXPLAINING CANADIANS’ VIEWS ON ASIA DETAILED FINDINGS ___________________________________________________________ 7 ____________________________________________________________________________________ 17 SECTION 1: PERCEPTIONS OF ASIA __________________________________________________________ 17 SECTION 2: VIEWS OF CANADA-ASIA ECONOMIC RELATIONS ____________________________ 23 SECTION 3: PROVINCIAL PERSPECTIVES ON CANADA-ASIA RELATIONS _______________ 31 SECTION 4: CANADA-ASIA ENERGY RELATIONS ___________________________________________ 35 SECTION 5: PROMOTING HUMAN RIGHTS IN ASIA ________________________________________ 39 SECTION 6: CANADA-ASIA SECURITY ISSUES ______________________________________________ 41 SECTION 7: DEMOGRAPHIC FINDINGS ______________________________________________________ 43 APPENDIX: READING THE TABLES _____________________________________________________________________ 49 NOP 2014 PG. 1 ABOUT THE ASIA PACIFIC FOUNDATION OF CANADA The Asia Pacific Foundation of Canada (APF Canada) has been a leader in research and...
Words: 16362 - Pages: 66
...Director Science Director Pablo muñoz – iHDP academic officer Report Authors matthew agarwala – London School of economics and Political Science Giles atkinson – London School of economics and Political Science/centre for climate change economics and Policy edward B. Barbier – university of Wyoming elorm Darkey – university of Bonn Partha Dasgupta – university of cambridge anantha Duraiappah – iHDP Secretariat Paul ekins – university college London Pablo fuentenebro – iHDP Secretariat Juan Sebastian Lozano – The nature conservancy (colombia) kevin mumford – Purdue university Pablo muñoz – iHDP Secretariat kirsten oleson – university of Hawaii Leonie Pearson – university of melbourne charles Perrings – arizona State university chris Perry – un-Water Decade Programme on capacity Development (unW-DPc) Steve Polasky – university of minnesota Heather Tallis – Stanford university Stacie Wolny – Stanford university Report Review Board John agnew – university of california, Los angeles Peter Bartelmus – Bergische universitaet Wuppertal/columbia university Julia Bucknall – World Bank Dabo Guan – university of Leeds michael Harris – university of Sydney rashid Hassan – university of Pretoria nicolas kosoy – mcGill university Jens Liebe – un-Water Decade Programme on capacity Development (unW-DPc) Hal mooney – Stanford university eric neumayer – London School of economics and Political Science Timothée ollivier – centre d’Économie industrielle unai Pascual – Basque centre for climate...
Words: 8722 - Pages: 35
...2013 begins, foreign and domestic observers alike are asking which path the country’s economic development should take in the next decade. How can China ensure stable and sustainable growth in the face of significant internal and external challenges, including slowing medium- and long-term growth, rising labor costs, and growing inflationary pressure? After the global economic crisis weakened external demand, which sustained China’s unprecedented economic growth for three decades, the authorities agreed that internal demand, especially domestic consumption, must become the country’s new growth engine. At the Chinese Communist Party’s congress in November, China’s leaders declared their intention to double per capita income by 2020, unleashing 64 trillion renminbi ($10.2 trillion) of purchasing power. Indeed, with roughly 130 million middle-class consumers, China’s domestic market holds significant potential. The Boston Consulting Group estimates that, with an average annual GDP growth rate of 7% in China and 2% in the United States, Chinese domestic consumption will rise to half of America’s by 2015, and 80% in 2020 (assuming that the renminbi appreciates at an average rate of 3% against the US dollar over the next few years). Moreover, the current-account surplus plummeted from more than 10% of GDP in 2007 to 2.8% in 2011, reflecting China’s decreasing reliance on exports to drive economic growth. In 2010, China’s imports ranked second in the world, and are expected to grow...
Words: 942 - Pages: 4
...Europe’s leap to industrialization and growth in population, the abundance of food was drastically decreasing. This inspired Europe to begin an imperialistic sparked Europe’s approach. Nonetheless, Europe’s growing empire was striking fear on to surrounded non western countries. Europe’s motivation for colonizing all over the world was sparked by three main topics: military factors, political factors and economic factors. Military was an enormous factor in imperialism. Leaders and countries often felt that the only way to remain safe and secure was to create naval bases around the globe. Naval bases were a “win-win” situation because the bases could also be used as merchant bases and trading ports. This meant Europe was able to increase both money and prestige due to the fact that their products were now available literally worldwide. Naval/merchant bases weren’t the only incentive to conquer; prestige and fear were sought after also. Both prestige and fear gave Europe a “leg-up” on its opponents due to basic human nature. Europe’s efforts to create fear by building naval bases and expanding their empire made Europe’s opponents feel weak and full of anxiety. This is very evident in Document 4, “Now, the French come, with their powerful weapons of war, to cause dissension among us. We are weak against them; our commanders and soldiers have been vanquished…” Virtually saying the Vietnamese state had no chance against Europe’s strong, stable, untied military. Closely relating to...
Words: 619 - Pages: 3
...Research | What are the cultural and economic values of the Basilica of the Holy Blood that the cultural tourists in Bruges attach to? | Tutor: Greetje KrijgsheldGroup: TM2LMembers: a. Tran Huy Thuc: 322938 b. Tran Le Viet Thao: 331287 c. Elena Loredana Sandu: 294594 | 1/14/2015 1/14/2015 Table of Contents Chapter 1: Introduction 3 Introduction 3 Problem statement 3 Overview of the report 3 Chapter 2: Literature review 5 Cultural heritage 5 Basilica of the Holly Blood visitor 6 Needs and demands 6 Cultural values (Intrinsic values) 6 Cultural values subsist the economic value 6 Economic value 7 Direct consumption 7 Indirect consumption 7 Beneficial externality 8 Economic value’s measurements 8 Contingent valuation method 8 Travel cost method 8 Choice modelling 9 Chapter 3: Research design/Methodology 10 Conceptual model 10 Research questions 12 Research method 12 Population and sampling 13 Limitations of the research 13 Chapter 4: Results and analysis 14 Research question 1 14 Research question 2 14 Research question 3 16 Chapter 5: Conclusion and recommendations 19 Appendices 20 Questionnaires matrix 20 SPSS 20 Reference list 26 Chapter 1: Introduction Introduction The Basilica of the Holy Blood is a Roman Catholic basilica in Bruges, Belgium and was originally built in the 12th century as the chapel of the residence of the Count. The uniqueness of the Basilica of Holy Blood lies in its...
Words: 8186 - Pages: 33
...indirect, to oppression of the working classes by the privileged class and for the disclosure of (2) the economic situation at the time the text was written. What this means in terms of Pride and Prejudice is that a Marxist critic would read to find evidence of oppressed alienation of workers, for example, domestic staff, and for indications of the economic conditions in the text and during Austen's writing years, spanning from the late 1790s to the early 1810s, as she finished writing Pride and Prejudice in 1798 while it was not until 1813 that it found a publisher (recall that the text was not modified to reflect socio-economic changes, if any, that may have occurred in the 15 year span). The analytical tools used by a Marxist critic in a Marxist reading are examination of the text for indications of economic oppression of workers; alienation (estrangement) of workers from their creative selves, from other workers, from the products they make, and from the creative process that their labor advances but that is not under their control; economic exploitation by the upper classes resulting in conflict between classes. Other analytical tools used are examination of the text for indications--related to the text and related to the author's own time period--of the economic base and superstructure, ideology and hegemony, and reification of workers. The economic base is the economic principles that establish the social and cultural order of things, which is called the superstructure and...
Words: 685 - Pages: 3
