ECONOMICS ASSIGNMENT

Circular Flow Model, Economic functions of the United States Government.

Real GDP, Nominal GDP.

Spillover Benefit, Spillover cost. Changes occurred to GDP from Year 1 to Year 2.

Long answers please, so I can understand the topic better and get my own thoughts on this, thank you so much!

QUESTION 1 1. This question is based on the Circular Flow Model, some answers can be used twice. Question #1: MUST ANSWER (1 point each) RESOURCE MARKET (3) (1 (13 ) ( 4) (14) (2) - (11 ) -(9) BUSINESSES GOVERNMENT HOUSEHOLDS - (12) ( 10 ) - ( 15 ) (6 (8) (16 ) (5). (7) PRODUCT MARKET (1) A. Cost of Goods Sold (2) B. Government Expenditures (3) C. Revenue (4) D. Goods and Services E. Final Goods and (5) services (6) F. Resources G. Production Inputs H. Land, labor, capital (8) and entrepreneurial (9) abilility I. Income (10) J. Consumption (11) Expenditures K. Taxes (12) L. Public Goods and (13) Services (14) (15) (16)QUESTION 2 1. The following questions are based on this table: 4.a. Calculate the Gross Domestic Product in Year 1 4.b. Calculate the gross Domestic Product in Year 2 Year 1 Year 2 Consumption Expenditures $10,089 Consumption Expenditures $10,546 Private Domestic Investment 1,628 Private Domestic Investment 1,823 Government Expenditures 2,931 Government Expenditures 3,280 Imports 725 Imports 730 Exports 650 Exports 700 Gross Domestic Product ? Gross Domestic Product ? QUESTION 3 1. List the six economic functions of the United States Government and explain each using a brief statement QUESTION 4 1. Explain what is meant by Real GDP. QUESTION 5 1. Describe what constitutes a Spillover Benefit and provide an example of one. QUESTION 6 1. Explain what changes occurred to GDP from Year 1 to Year 2 QUESTION 7 1. Describe what constitutes a "Spillover Cost" and provide an example of one. QUESTION 8 1. Explain what is meant by Nominal GDP