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Ton_1 - during a given period of time For each of the cases...

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Christine Ton October 5, 2010 Econ 101 Problem Set #1 1. Exogenous and Endogenous Variables The PPF shows the different rates of 2 products of the good or service that the economy can produce efficiently during a given period of time but has only a certain amount of quantity of productive resources. The 2 products measured on the graph are the independent variables also known as the exogenous variables. The dependent variable is the combination of the two products and the rate as which is measured by the PPF. The efficiency and measurements by the PPF, which also includes opportunity cost and marginal rate, are the dependent variable which is also known as the endogenous variable. 2. Real GDP and Economic Well-Being GDP is a measure of the value of all final goods and services newly produced in a country
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Unformatted text preview: during a given period of time. For each of the cases, the GDP of the country will be effected in either a minor and major way; each having somewhat of an effect on the GDP. A. The hurricane in Florida will make business for Disney World discontinued. Because of this shut down for a month the products and services that Disney World has given to the country’s GDP will decrease. This of the hurricane, the income that Disney World would have made in a month will not be counted. B. For GDP to be measured a country must have sold the product in the present country. Therefore the new easy-to-grow strain f wheat that will increase farm harvest...
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