1.In a market system, who decides what goods and services are produced?

2.What is the public sector?

3.A. What are the determinants of demand?

B. What are the determinants of supply?

4.A. What is a household?

B. What is household spending called?

Question: 5

Widgets Gizmos Thingamajigs

Year Price Quantity Price Quantity Price Quantity

2004 $ 7.50 2 $4.50 3 $3.75 7

2005 $8.50 2 $5.00 2 $4.00 6

Calculate the nominal GDP for

a.2004

b. 2005

c. Using 2005 as the base year, calculate the real GDP for 2007.

6) Use the following national income accounting to answer exercises.

Consumption $500

Imports $30

Net Investment $25

Government purchases $150

Exports $20

Capital consumption allowance $20

Statistical discrepancy $6

Receipts of factor income from the rest of the world $30

Payments of factor income to the rest of the world $23

7) What is the GDP for this economy?

8) What is the GNP for this economy?

9)What is the NNP for this economy?