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ECON 649 Economic Analysis Worksheet 1 for Technological Revolution questions with answers. Get case study answers to questions in Economic from assignment experts online for ECON649 Economic courses topics, Economics Assignment Help Online & Business Essay Writing.
ECON 649 Economic Worksheet 1 Read the Worksheet Instruction Sheet & Rubric
A: Income Inequality and the Technological Revolution
B: Measuring Living Standards and Growth
C: Capitalism as an Economic System
A: Income Inequality and the Technological Revolution(5 Marks)
- Hockey Stick Growth: Describe two facts that are captured by the following diagram.(1 mark)
- Examine the following diagrams. State two changes that occurred between the 1980s and 2014.(2 marks)
- Technology is a process that uses inputs to produce an output. If the output is clean clothes. What are the inputs into the production process? (1 mark)How has technological change for washing clothes helped improve living standards?(1 mark)
B: Measuring Living Standards and Growth (9 Marks)
1.) State the main difference between GDP/capita and disposable income/capita. (1 mark)
2.) Which is a better measure of well-being, GDP/capita or disposable income? (2 marks)
3.) Assume the production of GDP in Country A included the spending on investment in heavy plant and equipment to log rainforests and mine the brown coal. The run-off from the open-cut mine into the river system polluted the local supply requiring government expenditure to fix up the problem. Local volunteers and forest rangers paid by the government also collected rubbish from the mine-site that polluted the rainforest. The brown coal was used to power the local electricity stations built in earlier years. The power stations (which were old and poorly maintained) were built in a large residential neighbourhood. This caused severe health problems for people in the area increasing expenditure on healthcare. Brown coal has a high-water content resulting in greater greenhouse gas emissions (than even black coal).
Use the information provided in the paragraph. Complete,the following table. Explain your choice. (2 marks) (Minus ½ mark for each wrong answer. Minimum mark = zero)
|Economic Activity/Event||Included in GDP||Not Included in GDP|
|Logs cut in the rainforest|
|Pollution of the water supply|
|Time the volunteers spent picking up rubbish|
|Time the government rangers spent picking up rubbish|
|Government spending to fix up the water supply|
|Health problems caused by pollution from electricity production|
|Spending on healthcare caused by pollution|
|Greenhouse gas emissions|
4.) The following table contains data for output in a simple stylised economy in the years 2018 and 2019.
|Good/Service||Quantity||Price in $||Quantity||Price in $|
|Cups of Coffee||100,000,000||$3.50||110,000,000||$4.00|
Calculate nominal GDP in 2018. Show the steps to arrive at your answer.(1mark)
- Calculate nominal GDP in 2019. Show the steps to arrive at your answer.(1mark)
- Calculate real GDP in 2019, using 2018 as the base year. Show the steps to arrive at your answer. (1 mark)
- Did real GDP increase, decrease or remain the same in 2019. (1 mark)
C: Capitalism as an Economic System (11MARKS)
Which of the following are examples of private property? Explain.(2 marks)
- Buildings on universitygrounds in your home country
- Land on which houses are built in your home country
- Shares in a company
- A worker’s skills
Which of the following are not examples of markets? Explain.(2 marks)
- The sale of goods and services in a communist system
- Touts selling tickets outside a concert
- Selling of guns by criminals in Australia
- Giving of gifts to family, friends and business associates
Is the mafia, triads or yakuza a firm? Explain. Refer to the characteristics of a firm. (2 marks)
Let’s assume that Greta and Carlos can produce both apples and wheat.
- Let’s assume that there are no markets in apples and wheat, consequently no reason for specialisation. Let’s assume that Greta produces 500 apples and 30 tonnes of wheat. Let’s assume that Carlos produces 300 apples and 14 tonnes of wheat.What is total output?(1 mark)
- Let’s now assume that Greta has an absolute advantage in producing wheat and Carlos an absolute advantage in producing apples. In this scenario from specialisation they could produce the following.
|Greta||1,000 apples or 50 tonnes of wheat|
|Carlos||1,250 apples or 30 tonnes of wheat|
What would the total output be from specialisation? (1 mark)
- Let’s now assume that Greta has an absolute advantage in producing both apples and wheat. In this scenario from specialisation they could produce the following.
|Greta||1250 apples or 50 tonnes of wheat|
|Carlos||1000 apples or 20 tonnes of wheat|
Should Greta and Carlos still specialise? Explain. (2 marks) What is the maximum production from specialisation? (1 mark)