econ problem sets.pdf

# A general motors sells 20 million worth of 2017 new

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a. General Motors sells \$20 million worth of 2017 new car inventory \$__________ b. A corporation issues \$20 million in new common stock. \$__________ It uses \$12 million to build a new world headquarters, \$3 million to purchase new equipment, and \$5 million to repay bank loans c. The purchase of a two-year old office building for \$4,000,000; \$__________ the purchase price is 50% of appraised value d. The purchase of 100 acres of unimproved land for \$100,000 \$__________ e. A household purchases a newly-built house for \$300,000 \$__________ f. A general contractor does \$30,000 worth of remodeling to a house \$__________ g. A household invests \$10,000 in a new surround-sound stereo \$__________ entertainment system for their Naples home h. A German firm builds a \$20 million apartment complex in Lee County \$__________ i. Florida SouthWestern State College builds a \$20 million dormitory. \$__________ j. A hurricane destroys a \$20 million office building in Collier County \$__________ NAME: __________________________ PROF. H.J. VAN BOVEN CLASS DAYS & TIME: ____________ ECO 2013 / MACRO

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APPLIED LEARNING PROBLEM SET (2 pages) Chapter 8: Economic Growth 1. A nation’s standard of living depends on its ability to produce goods and services . a. Economic growth is defined and measured as the annual percentage increase in GDP over time. b. In the long run, a key statistic for a nation’s standard of living is GDP per capital. In the United States since 1950, c. real GDP has increased at an average annual rate of about __________% per year d. real GDP per capita has increased at an average annual rate of about __________% per year e. The real GDP growth rate minus the real GDP per capita growth rate (i.e., c d) equals the ___________________________________ growth rate. 2. Economic growth and the rule of 70 . In 2017 Richistan’s real GDP was \$12 trillion and Floridastan’s real GDP was \$1.5 trillion. Richistan has an average annual growth rate of real GDP equal to 3.5% and Floridastan has an average annual growth rate of real GDP equal to 7%. Must show calculations for a, b, c, and d a. Richistan’s real GDP will double in about __________ years. b. Floridastan’s real GDP will double in about __________ years. c. After 60 years, Richistan will have a real GDP equal to \$__________ trillion.
d. After 60 years, Floridastan will have a real GDP equal to \$__________ trillion. -2- Ch8 3. The four supply factors of economic growth are: a. Changes in the quantity and quality of resources. b. Changes in the quantity and quality of human resources c. Changes in the stock of capital goods d. Improvement in technology 4. In 1820 living standards in various places around the globe were ______________ they are today. a. more widely varied than b. just as widely varied as c. less widely varying than 5. Accounting for growth a. The most important source of U.S. economic growth is increases in labor productivity. b. The largest contributor to increases in U.S. labor productivity is technological advancement. 6. Immigration has slowed economic growth in the United States. In 25 words or more explain if you agree or disagree. Please indicate your word count. Word Count: __________

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NAME: __________________________ PROF. H.J. VAN BOVEN CLASS DAYS & TIME: ____________ ECO 2013 / MACRO APPLIED LEARNING PROBLEM SET (3 pages) Chapter 9: Business Cycles, Unemployment, and Inflation 1. Business cycle and GDP Go to the Bureau of Economic Analysis web site, . On the homepage click the
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