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17 Oct 2018

Mankiw, page 42, question 3. Suppose a woman marries her butler. After they are married, her husband continues to wait on her as before, and she continues to support him as before (but as a husband rather than an employee).

1) How does the marriage affect GDP? (Note: That is, the butler is treated as a husband,

not as an employee.)

2) How should it affect GDP? (Note: That is, the butler is treated as an employee, not as

a husband.)

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Elin HesselLv2

19 Oct 2018

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Related questions

Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following activities is either not accounted for or are measured inaccurately in calculations of GDP for the United States? Check all that apply.

-Funds spent by city governments to renovate their buildings

-The costs of air and water pollution

-The Brazilian wood that is used for flooring in a new U.S. house

-The leisure time enjoyed by Americans

-The value produced by doing your own laundry

2.

Consider a small economy composed of six people: Clancy, Eileen, Hubert, Kate, Poornima, and Manuel. Each person's employment status is described in the following table.

Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person's status as employed, unemployed, not in the labor force, if not in the civilian labor force but still part of the adult population, or not in the adult population if not in the civilian adult population.

Person	Status
-Clancy is a 20-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club.
-Eileen is a 36-year-old autoworker who was just laid off by her employer. She is trying to find any kind of job to help make ends meet.
-Hubert is a 79-year-old retired professor. He enjoys volunteering at the local public library.
-Poornima is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions, she gave up on her job search and decided to go back to grad school. She made that decision a few months ago.
-Manuel is a famous novelist. He is spending the summer at his lake house in upstate New York, doing a little writing each day but mostly spending his time gardening and reading.
-Kate is an 11-year-old student at East Valley Middle School. She baby-sits her younger brother and does other chores for which her parents give her an allowance of $30 per week.

Initially, Ana earns a salary of $300 per year and Yakov earns a salary of $200 per year. Ana lends Yakov $100 for one year at an annual interest rate of 16% with the expectation that the rate of inflation will be 12% during the one-year life of the loan. At the end of the year, Yakov makes good on the loan by paying Ana $116. Consider how the loan repayment affects Ana and Yakov under the following scenarios.

Scenario 1: Suppose all prices and salaries rise by 12% (as expected) over the course of the year. In the following table, find Ana's and Yakov's new salaries after the 12% increase, and then calculate the $116 payment as a percentage of their new salaries. (Hint: Remember that Ana's salary is her income from work and that it does not include the loan payment from Yakov.)

- Value of Ana's new salary after one year?

-The $116 payment as a percentage of Ana's new salary?

-Value of Yakov's new salary after one year

-The $116 payment as a percentage of Yakov's new salary

Scenario 2: Consider an unanticipated decrease in the rate of inflation. The rise in prices and salaries turns out to be 2% over the course of the year rather than 12%. In the following table, find Ana's and Yakov's new salaries after the 2% increase, and then calculate the $116 payment as a percentage of their new salaries.

-Value of Ana's new salary after one year

-The $116 payment as a percentage of Ana's new salary

-Value of Yakov's new salary after one year

-The $116 payment as a percentage of Yakov's new salary

viridiancrab379

QUESTION 1

One of the strengths of Virtue Ethics is that it provides us with explicit guidance in deciding how to act in particular circumstances.

True

False

QUESTION 2

More than one answer may be correct. (Hint: More than one of these is correct!) The Doctrine (Principle) of Double Effect allows the moral permissibility of:

A.		A mother aborting a pregnancy that was the result of a rape.
B.		A doctor performing a life-saving surgery on a pregnant woman where the intent is to save the life of the mother but the death of the fetus is a foreseen consequence of the procedure.
C.		A woman wantonly getting pregnant so she can get an abortion to make a political statement.
D.		A doctor injecting a terminally ill patient with morphine where the intent is to relieve the patient's pain but a foreseen consequence is hastening the patient's death.

QUESTION 3

Nonmaleficence requires that the physician not subject her patient to any risks at all.

True

False

QUESTION 4

A patient is unable to exercise full autonomy if her physician only tells her about one of several treatment options for her condition.

True

False

QUESTION 5

Mary Anne Warren endorses a distinction between what is genetically human and what is morally human.

True

False

QUESTION 6

Don Marquis argues that the wrongness of killing adult human beings (as well as human fetuses) is primarily due to the fact that killing deprives the victim of a valuable future.

True

False

QUESTION 7

Dax Cowart now believes his doctors were right to continue his life-saving treatment in spite of his requests for them to let him die.

True

False

QUESTION 8

Assigning degrees of urgency to patients wounded in a disaster (triage) and distributing limited medical resources based on who needs them most is a practice best supported by which ethical theory?

A.		Kantian Ethics
B.		Utilitarianism
C.		Care Ethics
D.		Natural Law Theory

QUESTION 9

Rule Utilitarianism holds that the principle of utility should be applied on a case-by-case basis, to particular acts in particular circumstances.

True

False

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