Draw a model of the following scenario similar Slack of money-$10 B D 510 of production-530...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Draw a model of the following scenario similar Slack of money-$10 B D 510 of production-530 Vale of spending $30 V-530 Imagine you are a time traveller and you enter a small medieval village and find your way to the only inn. The innkeeper rents rooms for $10 a week, which you pay, as that is the exact amount of money you brought. The innkeeper promptly goes across the street and buys a new pair of shoes (which were just being finished) from the cobbler for $10. Later the same day, the cobbler purchases a new bridle and a set of horseshoes (just produced) from the stable master for, again, $10. Right at the end of the day the stable master buys a year's supply of candles (freshly produced) from the candle maker for, of course, $10. These are the only economic transactions in the whole village on that particular day. Measure the total expenditures, total income earned, and total value of production for that day. What stock of money was used to generate this income flow? Step 3 - Engage Participate in Discussion Topic #3 - Economic Growth in the Discussions area in the online course. Post your answers to the following questions, as they relate to the model you drew: a. What were the total expenditures? What was the total income earned? And finally, what stock of money was used to generate this income flow? b. What is the relationship between production, expenditures, and income? c. What comes first: production or expenditure? And is it conceivable, for instance, to have income and production, but no expenditures? Draw a model of the following scenario similar Slack of money-$10 B D 510 of production-530 Vale of spending $30 V-530 Imagine you are a time traveller and you enter a small medieval village and find your way to the only inn. The innkeeper rents rooms for $10 a week, which you pay, as that is the exact amount of money you brought. The innkeeper promptly goes across the street and buys a new pair of shoes (which were just being finished) from the cobbler for $10. Later the same day, the cobbler purchases a new bridle and a set of horseshoes (just produced) from the stable master for, again, $10. Right at the end of the day the stable master buys a year's supply of candles (freshly produced) from the candle maker for, of course, $10. These are the only economic transactions in the whole village on that particular day. Measure the total expenditures, total income earned, and total value of production for that day. What stock of money was used to generate this income flow? Step 3 - Engage Participate in Discussion Topic #3 - Economic Growth in the Discussions area in the online course. Post your answers to the following questions, as they relate to the model you drew: a. What were the total expenditures? What was the total income earned? And finally, what stock of money was used to generate this income flow? b. What is the relationship between production, expenditures, and income? c. What comes first: production or expenditure? And is it conceivable, for instance, to have income and production, but no expenditures?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these economics questions
-
This question concerns lexical grammars. (a) Tree Adjoining Grammars contain two types of elementary tree. (i) What are these trees called? [1 mark] (ii) If one were building a grammar for English...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
In Problems 4352, graph each system of linear inequalities. State whether the graph is bounded or unbounded, and label the corner points. 0 x y 0 x + y = 1 x + y 7 2x + y 10
-
Propose a mechanism for each of the following reactions: a. b. c. H20 OCH HCI H20 OCH2CH3
-
Sanderson Corp. issued $20,000,000 of bonds payable on 1 June 20X5. The bonds are 10-year bonds, and bear interest at 5.5% per annum, payable semi-annually each 31 May and 30 November. The bonds were...
-
The Cooper Furniture Company of Potomac, Maryland, assembles two types of chairs (Recliners and Rockers). Separate assembly lines are used for each type of chair. Classify each cost item (AI) as...
-
A company manufactures three products: A, B, and C. The company currently has an order for three units of product A, 7 units of product B, and 4 units of product C. There is no inventory for any of...
-
Household income in marketing surveys is often reported in brackets: for example, under $15,000, $15,000$25,000, ... , over $95,000. (a) Suppose that household income is the outcome variable in a...
-
Suppose the prices of zero-coupon bonds paying $100 at maturity are: Price Time to maturity (years) $96.15 1 $90.70 2 $83.96 3 $76.29 4 Bond B1 B B3 B4 a. [1pt] What is the price of the 3-year coupon...
-
Using the Supervisor Performance data, test the hypothesis Ho : B1 = B3 = 0.5 in each of the following models: %3D (a) Y = Bo + B1X1 + B3X3 + . %3D (b) Y = Bo + B1X1 + B2X2 + +B3X3 + e. %3D
-
Consider the following call option with three months to expiration: a. What is the intrinsic value for this call option? b. What is the time premium for this call option? Strike price = $72 Current...
-
In what two forms can a bank hold its required reserves?
-
Whose liabilities are harder to predict, life insurers or property and casualty insurers? Explain why.
-
How does the Financial Modernization Act of 1999 affect the insurance industry?
-
Why are all participating policies written in an insurance company's general account?
-
The topic is "understanding workforce dynamics, write a paper on it
-
Find the APR in each of the following cases: NUMBER OF TIMES COMPOUNDED Semiannually Monthly Weekly Infinite EAR APR 10.4% 8.9 11.6 15.4
-
Use the numbers for the alcohol and tobacco category from the table in the Application "Goods with a Large Consumer Surplus Loss from Price Increases" to draw a figure that illustrates the roles that...
-
Change the answer given in the Challenge Solution for the short run rather than for the long run.
-
Are allocations \(a\) and \(g\) in Figure 10.4 part of the contract curve? Data From Figure 10.4:- 60 80 50 160 30 12. 20 20 Jane's wood 40 40 Denise's candy Od 20 Contract curve Denise's wood 20 218...
Study smarter with the SolutionInn App