The gross domestic product of Neonland is 450,000 neons. It has a ...

[armygirl]

The gross domestic product of Neonland is 450,000 neons. It has a total population of 1,500. 30 of the total population in Neonland comprises of retired workers, 50 of the population is employed, and the remaining are unemployed children.
 
  i) Calculate the income per capita of Neonland.
  ii) What is the income per worker of Neonland?
  iii) Is there a difference between the two measures? If yes, explain the reason behind this difference.

Question 2

During the financial crisis of 2008, the Fed
 
  A) attempted to stabilize the economy by selling over 1 trillion in securities.
  B) engaged in massive purchases of securities, adding over 1 trillion to its balance sheet.
  C) was careful to balance its purchase and sale of securities so as not to drastically change its balance sheet.
  D) stopped its purchase of mortgage-backed securities to reduce its balance sheet.

[nicoleclaire22]

Answer to Question 1

i) The formula for calculating the income per capita of a country is:
Income per capita = Gross Domestic Product/Total Population.
In this case, gross domestic product is 450,000 neons while total population is 1,500. Therefore, the income per capita of Neonland is 450,000/1,500 = 300 neons.
ii) The formula for calculating the income per working age population is:
Income per worker = Gross Domestic Product/Number of people in employment
In this case, 50 of the population is in employment. Therefore, income per worker is .
iii) There is a difference of 600 neons - 300 neons = 300 neons between the two measures. Income per capita is higher because the number of people in employment is lower than the total population.

Answer to Question 2

B