Explain any two of the problems in measuring the cost of living

Q: Q2) The production function of a small economy is Y=K0.3L°7. K is the amount of capital (land), L is…

A: (a) Production function Y = K0.3 L0.7   Where K is land and L is labor ----------------------------…

Q: The accumulated knowledge, skills, and expertise of the average worker in an economy is known as O…

A: In a market, there are different resources used by a firm during the production process that…

Q: Suppose you are given the following information for the country Lusitania 2011 Population total in…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Roberto is a senior citizen who consumes food and health care. When he retired in​ 2002, he consumed…

A: Meaning of Cost of Living Index: The cost of living index refers to the modification in costs of…

Q: Write the production function (human capital (H) being included in TFP) and explain the content of…

A: Production function: Y = F(K,L,H,A)

Q: 3. Which of the following is NOT a factor of production? Land, area to make things. O Labor, people…

A: Production is the process of combining the different inputs and materials to get consumable output.…

Q: For each of the following activities, identify the flow of dollars as either household-to-firm or…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: Alex contributes 23% of the total cost of her individual health care coverage. She pays $52…

A:

Q: a. What were the total expenditures? What was the total income earned? And finally, what stock of…

A: we can give the answer of the following as follow-

Q: The income of three firms in an economy in 2005, 2006 and 2007 are shown below in million nai YEARS…

A: Since you have posted a question with multiple sub parts we will solve first three sub parts for…

Q: If there are only two goods, apples and bikes produced in the economy; in 2015 total production of…

A: The cost of the basket is the total cost of products and services manufactured in an economy.

Q: A firm used $1,900 worth of peanuts and $100 worth of salt to produce peanut butter. This required…

A: In value added method, revenue – costs provides value that the firm added in the process

Q: Use the following information to calculate:                         ______________…

A: (a) Laspeyer's index = ∑[{((p1 x q0)} / {((p0 x q0)}] x 100 Laspeyer's index in 2020 = [(100 x 100 +…

Q: With the help of appropriate examples, explain the concept of value added.

A: Product or value added method is a method of calculating Gross Domestic Product.

Q: A firm used $1,900 worth of peanuts and $100 worth of salt to produce peanut butter. This required…

A: Value-added is a method of calculating the final value of the output of a firm and GDP without the…

Q: What is meant by the term cost of living? Define and explain it.

A: Cost of living is a way to calculate the minimum amount of money required to cover basic need of an…

Q: An increase of 50 per cent in the cost of a certain consumable product raises the cost of living of…

A: The consumer price index (CPI) is used to measure the weighted basket of goods and services that a…

Q: Why does the general public often refer to the cost-of-living index?

A: The economy consists of different type of people in it. There will be some with high financial…

Q: 4. So a friend, a non econ friend, looks at your answers in e) above and asks you: Why are your…

A: The real wage is derived from two terms, which are nominal wage and inflation rate.

Q: Identify the earners of the following income. 1. Rent 2. Salaries 3. Taxes 4. Dividends 5. Tips 6.…

A: The answer to the question are is follows :

Q: The table provided shows the amount consumers of a country spend on five items and the percentage…

A: Total expenditure is the multiplication of price and quantity. It means as the price rises then the…

Q: Question b The output level on a AD/AS graph when all factors of production are being used is called…

A: The link between the total quantity of production demanded (measured in real GDP) and the price…

Q: Adam's Ribs in downtown Chicago buys $10,000 worth of beef ribs, $25,000 worth of pork ribs, and…

A: Gross domestic product is used to measure economic growth in terms of output produced or income…

Q: In evaluating the present value of cultivable land, some economists include the present value of the…

A: Given a specified return rate, the present value of an investment is the current worth of that…

Q: Define the term cost-of-living index?

A: Cost-of-living refers to the amount of money that is required by an individual to maintain an…

Q: In January 2015, Tim's Gyms, Inc. owned machines valued at $1 million. During the year, the market…

A: Gross investment: It is the money spent on the purchase of new capital.  Net investment: It is the…

Q: One day,  chinedu the barber , Inc, collects D400 for haircuts.over this day , his equipment…

A: Given, Total income = D400 Depreciation= D 50 Sale tax (Indirect taxes) = D 30 Income tax (Personal…

Q: What is the difference between the rental price and the purchase price of capital?

A: In economics, the rental price (rk) of capital refers to the opportunity cost of hiring capital.…

Q: a)Distinguish between investment and capital, b) Explain the difference between an invention and an…

A: The economic activities and several other options of an economy are based upon certain components…

Q: Madeleine is a high school graduate deciding whether to go to university. She (like everyone else)…

A: Madeline's net (recent value of income) = income in period 1 + income in period 2(1+r)Without…

Q: Investment (I) includes: O the amount spent on stocks and bonds. O the amount spent on new factories…

A: expenditure approach: GDP= consumption+investment +government expenditure+net exports

Q: A consultant works for $200 per hour. She likes to eat vegetables, but is not very good at growing…

A: Meaning of Opportunity Cost: The term opportunity cost refers to the situation under which the…

Q: The work force of a certain factory is growing at rate of 2 per month while the average productivity…

A: The productivity formula is used to calculate the productivity of complete production process or of…

Q: Under new home economics model of consumption of commodities, what is the impact of raising real…

A: Laborer: The person who gives or provides his service or work against the wage is called the…

Q: Discuss wether all firms in a country will welcome a change in people’s income. MUST use examples,…

A: The markets are the place where the buyers and sellers of the goods and services tend to interact…

Q: Which type of income is composed of both the labour income and capital income of those person who…

A: The amount earned by employed people by working is referred to as labour income. To separate it from…

Q: Fill in the missing values in the table below.

A: Real gdp= Nominal gdp/ price index Nominal gdp =Real gdp× price index Price index = Nominal gdp/Real…

Q: The average total of goods and services required to maintain a particular standard of living is…

A: Answer - "Thank you for submitting the question But we are authorized to solve one question at a…

Q: oods and Services are exchanged and used As Final Consumption For Investment As Inputs in the…

A: Answer is given below

Q: The Hatfields and the McCoys both earn $10,000 per year in real terms in the labor market, and both…

A: People often split their income between consumption and savings. When a household saves, it takes a…

Q: Which category of household expenditures does the U.S. government consider to be a component used in…

A:

Q: Explain how households and firms interact in the factor market and in the product market

A: Market: It is an arrangement between buyers and sellers for exchanging goods and services for money.…

Q: What is the relationship between the rising cost of living and low-income communities’ standard of…

A: The cost of living is the average amount of money that people in a certain location require in order…

Q: Ross is a senior citizen who consumes food and health care. When he retired in 2002, he consumed 90…

A: Given:- In 2002- Price of meal=$10 Price of medical checkup=$73 In 2012- Price of meal=$11 Price of…