PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Chapter 5, Problem 1P
To determine

Gross Domestic Product of a two-person economy.

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John is deciding whether to go to college. He knows that if he goes, he will have to quit his $15,000 a year job. He needs to know what is the true cost of attending his first year of college. John's expenses of going to college of college tuition are: $10,000 ( $7000 tuition, $1000 for books, and $2000, for extra transportation costs.) John could have invested the $10,000 he spent on his tuition at a yearly interest rate is 10%. How would an economist would calculate the cost of of going to college for one year.
Lori is a student who teaches golf on the weekend and in a year earns $20,000 after paying her taxes. At the beginning of 2010, Lori owned $1,000 worth of books, CDs, and golf clubs and she had $5,000 in a savings account at the bank. During 2010, the interest on her savings account was $300 and she spent a total of $15,300 on consumption goods and services. There was no change in the market values of her books, CDs, and golf clubs.                            (i)       How much did Lori save in 2010?                                                                       (ii)      What was her wealth at the end of 2010?
Raj, Ismail and Carol went shopping. Raj spent 0.25 of the total amount that Ismail and Carol spent. Carol spent 4/11 of the total amount that Raj and Ismail spent. Ismail spent $37.50 more than Raj. If Ismail had $90 before he went shopping, what fraction of his money did he spend? (Answer in Simplest form)
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