Fundamentals of Economics free essay sample

Gross domestic product, National accounts, Value added, Supply and demand, Aggregate supply, Final goods, Economics, Aggregate demand Q. : 1: The manuscript for this book was typed for free by a friend. Had I hired a secretary to do the same job, GDP would have been higher, even though the amount of output would have been identical. Why is this? Does this make sense? A. : 1: If a secretary were hired to type the manuscript, they would have had the opportunity to provide a service at a price. We know that each good and service produced and brought to market has a price. That price serves as a measure of value for calculating total output; in this case, the task of completing the typing for this book. GDP is the total market value of all final goods and services produced within a nation’s borders in a given time period. If the job was undertaken by the secretary, the market price of the service provided would have been included in the calculation of the nation’s GDP for that year. We will write a custom essay sample on Fundamentals of Economics or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Because the manuscript was typed by a friend, there was no exchange of money. GDP = C + I + G + (X – M) where; GDP = Gross Domestic ProductC = Consumption I = InvestmentG = Government Spending X = Total value of goods exported out of the nation in the given time period M = Total value of goods imported into the nation in the given time period Because GDP reflects a summation of all individual consumption, investment and trade portions of the economy, the above scenario leads to a cascading impact on the overall GDP. Impact on Consumption: If the secretary received the money for services provided, it would have resulted in increased buying power for them. Increased purchasing power leads to increase in consumption; an important factor in the calculation of a nation’s GDP. Increased purchasing power also creates a positive impact on the standard of living of individuals that can eventually push the demand curve outward. Impact on Government Spending: With the exchange of money for the exchange of services, an element of the entire transaction could have resulted in an increase in the taxes owed to the Government. - Yes, it makes sense that the nation’s GDP would have been higher had a secretary been hired to accomplish the typing of the manuscript for this book. Q. : 3: If gross investment is not large enough to replace the capital that depreciates in a particular year, is net investment greater or less than zero? What happens to our Production Possibilities? A. : 3: Introduction: Changes in real GDP from one year to the next tell us how much the economys output is growing. Net Domestic Product (NDP) equals GDP depreciation on a countrys capital goods. NDP accounts for capital that has been consumed over the year in the form of housing, vehicle , or machinery deterioration. Depreciation, also referred to as capital consumption allowance, represents the amount of capital that would be needed to replace those depreciated assets. Investment: Investment adds to the nation’s capital stock. An increase in capital shifts the aggregate production function outward, increases the demand for labor, and shifts the long-run aggregate supply curve to the right. Investment therefore affects the economy’s potential output and thus its standard of living in the long run. Investment is a component of aggregate demand. Changes in investment shift the aggregate demand curve and thus change real GDP and the price level in the short run. An increase in investment shifts the aggregate demand curve to the right; a reduction shifts it to the left. Depreciation: We routinely use up plans and equipment (capital) in the production process. To maintain our production possibilities, we must at least replace what we’ve used. This value of capital used up in producing goods and services is called depreciation. Gross and Net Investment: As capital is used, some of it wears out or becomes obsolete; it depreciates. Investment adds to the capital stock, and depreciation reduces it. Gross investment minus depreciation is net investment. If gross investment is greater than depreciation in any period, then net investment is positive and the capital stock increases. If gross investment is less than depreciation in any period, then net investment is negative and the capital stock declines. Conclusion: Thus, NDP is the sum total of money value of final goods and services produced in a country on an accounting year excluding depreciation cost. NDP estimates how much the country has to spend to maintain the current GDP.

Graduate Record Exam Frequently Asked Questions

Graduate Record Exam Frequently Asked Questions Like it or not, if youre applying to grad school the Graduate Record Exam (GRE) is on your to-do list. What is the GRE? The GRE is a standardized exam that permits admissions committees to compare applicants on the same scale. The GRE measures a variety of skills that are thought to predict success in graduate school across a wide variety of disciplines. Actually, there are several GRE tests. Most often when an applicant, professor, or admissions director mentions the GRE, he or she is referring to the GRE General Test, which is thought to measure general aptitude. The GRE Subject Test, on the other hand, examines applicants knowledge of a specific field, such as Psychology or Biology. You will most definitely be required to take the GRE General Test; however, not all graduate programs require you to take the corresponding GRE Subject Test. What Does the GRE Measure? The GRE General Test measures the skills that youve acquired over the high school and college years. It is an aptitude test because it is meant to measure your potential to succeed in graduate school. While the GRE is only one of several criteria that graduate schools use to evaluate your application, it is one of the most important. This is particularly true if your college GPA is not as high as youd like. Exceptional GRE scores can open up new opportunities for grad school. The GRE General Test contains sections that measure verbal, quantitative, and analytical writing skills. The Verbal section tests your ability to understand and analyze written material through the use of sentence completion and reading comprehension questions.The Quantitative section tests basic math skills and emphasizes data interpretation as well as your ability to understand and apply quantitative skills to solve problems. Types of questions include quantitative comparisons, problem-solving, and data interpretation.The Analytical Writing section tests your ability to articulate complex ideas clearly and effectively, examine claims and accompanying evidence, support ideas with relevant reasons and examples, sustain a well-focused, coherent discussion, and control the elements of standard written English. It consists of two written essays: Analyze an Issue Task and Analyze an Argument Task. GRE Scoring How is the GRE scored? The verbal and quantitative subtests yield scores ranging from 130-170, in 1 point increments. Most graduate schools consider the verbal and quantitative sections to be particularly important in making decisions about applicants. The analytical writing section yields a score ranging from 0-6, in half-point increments. How Long Does the GRE Take? The GRE General Test will take 3 hours and 45 minutes to complete, plus time for breaks and reading instructions. There are six sections to the GRE One Analytical Writing section with two 30 minute tasks. This section is always the first a test-taker receivesTwo Verbal Reasoning sections (30 minutes each)Two Quantitative Reasoning sections (35 minutes each)One unscored section, typically a Verbal Reasoning or Quantitative Reasoning section, that may appear at any point in the computer-based GRE revised General TestAn identified research section that is not scored may also be included in the computer-based GRE revised General Test Basic GRE Facts The GRE General is administered by computer year-round.Register to take the GRE at a test center near you.The fee for the GRE is $160 in the US and US Territories, $90 in all other locations.On Test Day arrive 30 minutes early to complete any paperwork. If you arrive late, you may not be admitted and will not be refunded.Bring identification to the test center. Unofficial scores appear on the computer screen following your test. Official scores are mailed to you and the institutions you choose 10 days to two weeks afterward. Plan to take the GRE well in advance of application due dates. Try to take it the spring or summer before you apply to grad school. You can always retake the GRE, but remember that youre allowed to take it only once per calendar month. Prepare well ahead. Consider a GRE prep class.

CLIMATE CHANGE Exercise Essay Example | Topics and Well Written Essays - 750 words

CLIMATE CHANGE Exercise - Essay Example Australia is trying to minimize the carbon emissions so that it can control the climate changes. The reduction target laid down by Australia is quite possible to achieve in ten years given the budget allocated to the new plans. The basic plan of cutting down the carbon emissions arose when Australia witnessed many droughts and spontaneous weather changes. The decision of cutting down the carbon emissions is quite right but according to some experts the cut in emissions is quite less in comparison to the alarming rates laid down by different environmental agencies. In my view the decision taken by Australia is quite right even though it is not cutting the emissions by a great percentage because if this decision is not taken then the rate of emission would only increase rather than decrease. The approach that Australia has adopted is a realistic one as cutting down the emission by 15% is possible. They have proposed new legislative measures which would hold the industries accountable f or the carbon emissions and have even levied taxes on the sources which are emitting such gases (Australian Government Department of Climate Change 2008;CSIRO 2010; BBC News 2008). Australia has realized the grave danger that the carbon emissions put the state into and have taken a stand on it. By taking an action on reducing these emissions they have urged other developed and undeveloped countries to do the same and make the earth a better to live. If other states do not follow the same schemes put forward by Australia then these spontaneous climate changes would go on with great disasters (BBC News 2008; McCaffrey 2006). Climate change all over the world is alarming not only to the developed countries but also to the undeveloped countries. Bangladesh is one of the examples of undeveloped countries which has realized the potential of emissions and has taken a stand on it. They have proposed