Exercise Sheet 1
... (d) constant returns to scale and profit maximisation together imply that economic profit is zero 12. According to Euler’s theorem, the sum of all factor payments will equal total ouput if each factor of production is paid its marginal product and if: (a) the production function has constant returns ...
... (d) constant returns to scale and profit maximisation together imply that economic profit is zero 12. According to Euler’s theorem, the sum of all factor payments will equal total ouput if each factor of production is paid its marginal product and if: (a) the production function has constant returns ...
gross domestic product per capita in pps
... Gross domestic product per capita in purchasing power standards (PPS) is the ratio between the level of gross domestic product (GDP), expressed in purchasing power standards, and total population. GDP in PPS is obtained by converting GDP to a fictive currency using special conversion factors. Purcha ...
... Gross domestic product per capita in purchasing power standards (PPS) is the ratio between the level of gross domestic product (GDP), expressed in purchasing power standards, and total population. GDP in PPS is obtained by converting GDP to a fictive currency using special conversion factors. Purcha ...
Why Net Domestic Product Should Replace Gross Domestic Product
... from GDP to indicate the amount of current ...
... from GDP to indicate the amount of current ...
here
... All estimates, by definition, are subject to statistical ‘error’ but in this context the word refers to the uncertainty inherent in any process or calculation that uses sampling, estimation or modelling. Most revisions reflect either the adoption of new statistical techniques, or the incorporation o ...
... All estimates, by definition, are subject to statistical ‘error’ but in this context the word refers to the uncertainty inherent in any process or calculation that uses sampling, estimation or modelling. Most revisions reflect either the adoption of new statistical techniques, or the incorporation o ...
Unit 2 Notes - Phoenix Union High School District
... services produced annually within the borders of a country. ...
... services produced annually within the borders of a country. ...
Assessment Schedule – 2014
... common currency when measuring the GNI per capita. If the $NZ appreciates, our GNI will rise above $US24 358, and our HDI will rise, even though no more goods have been produced. Also, the HDI uses a limited range of non-income items (life expectancy and schooling), while other measures of well-bein ...
... common currency when measuring the GNI per capita. If the $NZ appreciates, our GNI will rise above $US24 358, and our HDI will rise, even though no more goods have been produced. Also, the HDI uses a limited range of non-income items (life expectancy and schooling), while other measures of well-bein ...
NCEA Level 2 Economics (91224) 2014
... common currency when measuring the GNI per capita. If the $NZ appreciates, our GNI will rise above $US24 358, and our HDI will rise, even though no more goods have been produced. Also, the HDI uses a limited range of non-income items (life expectancy and schooling), while other measures of well-bein ...
... common currency when measuring the GNI per capita. If the $NZ appreciates, our GNI will rise above $US24 358, and our HDI will rise, even though no more goods have been produced. Also, the HDI uses a limited range of non-income items (life expectancy and schooling), while other measures of well-bein ...
Answer Key
... 3. a) wage rate: $7; workers employed: 12 million b) employed: 10.8; unemployed: 2.7 c) Since employment dropped from 12 million to 10.8 million, 1.2 million have lost their jobs. The rest of the unemployed, 1.5 million, are the result of more people looking for jobs (quantity supplied increased fro ...
... 3. a) wage rate: $7; workers employed: 12 million b) employed: 10.8; unemployed: 2.7 c) Since employment dropped from 12 million to 10.8 million, 1.2 million have lost their jobs. The rest of the unemployed, 1.5 million, are the result of more people looking for jobs (quantity supplied increased fro ...
PowerPoint Template
... Lanning suggests (1986) that missing observations is better to be obtained independently, than to be considered as common variables along with other data. Obtaining higher frequency data from lower frequency ones is called temporal disaggregation, in its 2 forms: interpolation (for stock variables ...
... Lanning suggests (1986) that missing observations is better to be obtained independently, than to be considered as common variables along with other data. Obtaining higher frequency data from lower frequency ones is called temporal disaggregation, in its 2 forms: interpolation (for stock variables ...
Session 11. GDP statistics by activity
... transactions are measured as if they had taken place at the average prices of the base year. In the base year the figures at current and at constant prices are identical. In principle, according to the production approach, GDP is the volume of outputs minus the volume of inputs, combined using base ...
... transactions are measured as if they had taken place at the average prices of the base year. In the base year the figures at current and at constant prices are identical. In principle, according to the production approach, GDP is the volume of outputs minus the volume of inputs, combined using base ...
Balancing the Three Approaches to Measuring Gross Domestic
... As described above, the annual chained volume estimate of GDP is derived from the expenditure data consistent with the balanced nominal data. The assumption used within the output approach that output changes are the same as GDP changes works very well in the short-term, but over time it works less ...
... As described above, the annual chained volume estimate of GDP is derived from the expenditure data consistent with the balanced nominal data. The assumption used within the output approach that output changes are the same as GDP changes works very well in the short-term, but over time it works less ...
ECON 2305 Test #1 PREVIEW SHEET Ten Fundamental Principles
... 3. All persons must make choices. 4. Incentives matter. 5. People generally act in their own selfinterest when choices are made. 6. There is often more than one way to produce things. 7. Voluntary exchange is mutually advantageous. 8. It is wealth, not poverty, which has causes. 9. Public policies u ...
... 3. All persons must make choices. 4. Incentives matter. 5. People generally act in their own selfinterest when choices are made. 6. There is often more than one way to produce things. 7. Voluntary exchange is mutually advantageous. 8. It is wealth, not poverty, which has causes. 9. Public policies u ...
Chapter_20
... Three methods for measuring national income (output): • total value added from domestic production • total expenditures on domestic output • total income generated by domestic production ...
... Three methods for measuring national income (output): • total value added from domestic production • total expenditures on domestic output • total income generated by domestic production ...
Chain-weight GDP calculations
... To increase the number of decimal places, click the appropriate button on the toolbar (it appears next to the comma button).] Copy cell C11 to cells D11 through F11 to make the calculation for the remaining years. 3. In row 12, enter a formula to calculate the real growth rate of output for year 2 ( ...
... To increase the number of decimal places, click the appropriate button on the toolbar (it appears next to the comma button).] Copy cell C11 to cells D11 through F11 to make the calculation for the remaining years. 3. In row 12, enter a formula to calculate the real growth rate of output for year 2 ( ...
GDP, CPI & Inflation Rate - VCC Library
... Gross domestic product is the total value of all final goods and services produced within a country over a given year. Final goods are goods that are consumed and used as is (e.g. loaf of bread), as opposed to intermediate goods which are sold and used for some further stage of production (e.g. whea ...
... Gross domestic product is the total value of all final goods and services produced within a country over a given year. Final goods are goods that are consumed and used as is (e.g. loaf of bread), as opposed to intermediate goods which are sold and used for some further stage of production (e.g. whea ...
AP Macro Unit 2 Student Notes
... 1) GDP is a monetary measure: the reason for this is so that we can compare apples and oranges. EX. If we produce 1000 C.D.'s 1200 paper back books this year and then next year produce 1000 paper back books and 1200 C.D.'s in which year was our GDP the highest? 2) intermediate goods: (goods and serv ...
... 1) GDP is a monetary measure: the reason for this is so that we can compare apples and oranges. EX. If we produce 1000 C.D.'s 1200 paper back books this year and then next year produce 1000 paper back books and 1200 C.D.'s in which year was our GDP the highest? 2) intermediate goods: (goods and serv ...
Data Snapshot - Şeker Yatırım
... shaved off 150 bps form the headline pulling down 3Q14 GDP growth to weakest levels since 4Q12. With the 3Q14 figure, 9M14 GDP growth realized at 2.9%, below the government’s revised target of 3.3% for the full year. For the coming period, initial indicators such as industrial production (IP) and ca ...
... shaved off 150 bps form the headline pulling down 3Q14 GDP growth to weakest levels since 4Q12. With the 3Q14 figure, 9M14 GDP growth realized at 2.9%, below the government’s revised target of 3.3% for the full year. For the coming period, initial indicators such as industrial production (IP) and ca ...
Fiscal Policy
... • There was no such thing as fiscal policy until John Maynard Keynes invented it in the 1930s – He maintained that • The only way out of the Depression was to boost aggregate demand by increasing government spending • If we ran a big enough budget deficit, we could jump-start the economy and, in eff ...
... • There was no such thing as fiscal policy until John Maynard Keynes invented it in the 1930s – He maintained that • The only way out of the Depression was to boost aggregate demand by increasing government spending • If we ran a big enough budget deficit, we could jump-start the economy and, in eff ...
The Three Faces of GDP - Uniwersytet Warszawski
... the valuation of output. It is calculated without deducting for depreciation of fabricated capital assets or for depletion and degradation of natural resources. GDP is equal to GNI less net receipts of primary income. Value added is the net output of an industry after adding up all outputs and subtr ...
... the valuation of output. It is calculated without deducting for depreciation of fabricated capital assets or for depletion and degradation of natural resources. GDP is equal to GNI less net receipts of primary income. Value added is the net output of an industry after adding up all outputs and subtr ...
+ = GDP
... incomes of those providing the replacement goods, but they also decrease the profit incomes of those purchasing the replacement goods.) Result= aggregate income remains unchanged. Indirect business taxes consist of sales taxes and other excise taxes that firms collect but not regarded as part of fir ...
... incomes of those providing the replacement goods, but they also decrease the profit incomes of those purchasing the replacement goods.) Result= aggregate income remains unchanged. Indirect business taxes consist of sales taxes and other excise taxes that firms collect but not regarded as part of fir ...
Krugman & Wells Chapter 23 PPT
... statistics: railroad freight car loadings, stock prices, and incomplete indexes of industrial production. Simon Kuznets developed a set of national income accounts. The first version of these accounts was presented to Congress in 1937 and in a research report titled National Income. The push to comp ...
... statistics: railroad freight car loadings, stock prices, and incomplete indexes of industrial production. Simon Kuznets developed a set of national income accounts. The first version of these accounts was presented to Congress in 1937 and in a research report titled National Income. The push to comp ...
Consumption per capita amongst Member States
... 1. Actual Individual Consumption consists of goods and services actually consumed by individuals, irrespective of whether these goods and services are purchased and paid for by households, by government, or by non-profit organisations. In international volume comparisons of consumption, AIC is ofte ...
... 1. Actual Individual Consumption consists of goods and services actually consumed by individuals, irrespective of whether these goods and services are purchased and paid for by households, by government, or by non-profit organisations. In international volume comparisons of consumption, AIC is ofte ...
PRESENTATION -
... – Expenditures for pensions and salaries in the public sector larger than the economy can withstand – they need to be decreased to 11% of GDP and 8% of GDP • Even then, pensions at the upper threshold of sustainability, salaries would be at a satisfactory level – the old target for salaries of 7% of ...
... – Expenditures for pensions and salaries in the public sector larger than the economy can withstand – they need to be decreased to 11% of GDP and 8% of GDP • Even then, pensions at the upper threshold of sustainability, salaries would be at a satisfactory level – the old target for salaries of 7% of ...
Genuine progress indicator
Genuine progress indicator, or GPI, is a metric that has been suggested to replace, or supplement, gross domestic product (GDP) as a measure of economic growth. GPI is designed to take fuller account of the health of a nation's economy by incorporating environmental and social factors which are not measured by GDP. For instance, some models of GPI decrease in value when the poverty rate increases. The GPI is used in green economics, sustainability and more inclusive types of economics by factoring in environmental and carbon footprints that businesses produce or eliminate. ""Among the indicators factored into GPI are resource depletion, pollution, and long-term environmental damage."" GDP gains double the amount when pollution is created, since it increases once upon creation (as a side-effect of some valuable process) and again when the pollution is cleaned up, whereas GPI counts the initial pollution as a loss rather than a gain, generally equal to the amount it will cost to clean up later plus the cost of any negative impact the pollution will have in the mean time. While quantifying costs and benefits of these environmental and social externalities is a difficult task, ""Earthster-type databases could bring more precision and currency to GPI's metrics."" ""Another movement in economics that might embrace such data is the attempt to 'internalize externalities' - that is, to make companies bear the costs"" of the pollution they create (rather than having the government bear that cost) ""by taxing their goods proportionally to their negative eco-impacts.""GPI is an attempt to measure whether the environmental impact and social costs of economic production and consumption in a country is a negative or positive factor in overall health and well-being. By accounting for the costs borne by the society as a whole to repair or control pollution, poverty and prosperity GPI balances GDP spending against external costs. GPI advocates claim that it can more reliably measure economic progress, as it distinguishes between the overall ""shift in the 'value basis' of a product, adding its ecological impacts into the equation.""(Ch. 10.3)Comparatively speaking, the relationship between GDP and GPI is analogous to the relationship between the gross profit of a company and the net profit; the Net Profit is the Gross Profit minus the costs incurred; the GPI is the GDP (value of all goods and services produced) minus the environmental and social costs. Accordingly, the GPI will be zero if the financial costs of poverty and pollution equal the financial gains in production of goods and services, all other factors being constant.