1.5 Which method of calculating GDP do illegally imported used cars distort? a) Production method. b) Income method. c) Value added method. d) Expenditure method.
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- What are the main components of measuring GDP with what is produced?(a) Calculate GDP using the Income and Expenditure Approach. (b) (all figures are in billions of dollars): Item Amount ($) Government purchase of goods and services 1,721.6 Exports 1,096.3 Receipts of factor income from the rest of the world 382.7 Depreciation (consumption of fixed capital) 990.8 Net fixed Investments 688.2 Corporate income taxes 265.2 Consumption expenditures 6,739.4 Indirect business taxes 664.6 Imports 1,475.8 Payments of factor income to the rest of the world 343.7 Inventory change 56.5 Social security contributions 702.7 Undistributed corporate profits (retained earnings) 130.3 Government transfer and interest payments 1,366.3 Personal interest payments 286.2 Personal taxes 1,235.7 (c) Using the following data calculate: (i) The number of persons employed. (ii) The number of persons unemployed.…3. Determine if the following would be included (I) or excluded (E) from the calculation of GDP. (a) The cashing in of a U.S. savings bond (b) The purchase of a new truck by a trucking company (c) Government purchase of missiles from a private business (d) An increase in business inventories (e) The income of a tax accountant working for a business (f) Income received from interest on a corporate bond (g) Business expenditures on pollution control equipment (h) Dr. Jung grows tomatoes in his backyard for home consumption Cashing a savings bond is a financial transaction)
- (a) Calculate GDP using the Income and (all figures are in billions of dollars): Approach. Amount ($) 1,721.6 1,096.3 Item Government purchase of goods and services Exports Receipts of factor income from the rest of the world Depreciation (consumption of fixed capital) Net fixed Investments 382.7 990.8 688.2 Corporate income taxes Consumption expenditures Indirect business taxes 265.2 6,739.4 664.6 Imports Payments of factor income to the rest of the world Inventory change Social security contributions Undistributed corporate profits (retained earnings) Government transfer and interest payments Personal interest payments Personal taxes 1,475.8 343.7 56.5 702.7 130.3 1,366.3 286.2 1,235.75. GDP during a period can be calculated by summing either (A) the purchases of domestically produced final goods and services or the cost incurred in the production of those goods. (B) the amount received by business firms for consumer goods and services or the spending of business firms on investment goods and services. (C) all household expenditures on final goods and services or all business purchases of factors of production. (D) sales of goods and services to foreigners or the purchase of goods and services from foreigners. (E) the final market value of all goods purchased or the income generated from all labor services rendered. 6. Which one of the following would count as investment in the national income accounts? (A) buying a U.S. government bond (B) buying 100 shares of Wal-Mart stock (C) buying an existing house (D) a freight-hauling firm buying a new domestically produced truck (E) a car manufacturer buying tires from a tire manufacturer(1f) If Nominal GDP is $16,000 billion and the GDP deflator is 50, then Real GDP is: $25,000 billion. $32,000 billion. $8,000 billion. (1g) For productivity to increase the total number of hours worked has to increase. the value of the production per hour worked has to increase. the total production or output has to increase. (1a) The Helper Company’s customer service representatives received new computers and training on how to utilize them best. In regards to measuring productivity, these new computers and updated technology knowledge have increased profit for the Helper company. increased capital deepening for the Helper company. increased costs for the Helper company. (1b) Of the following examples, which one has little or no effect on labor productivity? The frequency of business cycles. (my guess) Technological change. The quality and quantity of available capital resources. (1c) What can you conclude when a nation’s production possibilities frontier shifts outward?…
- 1. Calculate GDP using the expenditures approach for year 1 and year 2. Explain your rationale with numbers. In other words, you must show the following; ▪ What is Personal Consumption Expenditures in year 1 and 2 ▪ What is Gross Private Domestic Investment in year 1 and 2 ▪ What is Government Purchases of Goods and Services in year 1 and year 2 What is Net Exports in year 1 and year 2 ▪ What is GDP in year 1 and year 2 2. In percentage terms, which of the 4 categories of spending changed more from year 1 to year 2. In other words, looking at the results from year 2, which of the categories experienced the highest percentage change. Explain your rationale with numbers. 3. What was the percentage change in GDP? Explain your rationale with numbers. Use 2 decimal points. 4. In your own words, explain why GDP is such an important metric that is used to understand the economic performance of nations. How does looking at GDP per capita help when comparing economic performance of different…(a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars): Amount ($) 1,721.6 1,096.3 Item Government purchase of goods and services Exports Receipts of factor income from the rest of the world Depreciation (consumption of fixed capital) Net fixed Investments 382.7 990.8 688.2 Corporate income taxes Consumption expenditures Indirect business taxes 265.2 6,739.4 664.6 Imports Payments of factor income to the rest of the world Inventory change Social security contributions Undistributed corporate profits (retained earnings) Government transfer and interest payments Personal interest payments 1,475.8 343.7 56.5 702.7 130.3 1,366.3 286.2 Personal taxes 1,235.7 (b) Using the following data calculate: (i) (ii) (iii) (iv) (v) The number of persons employed. The number of persons unemployed. The labour force. The Labour Force Participation rate. The “official" unemployment rate. 987,156 Currently Working 9845 (ages 13-14) looking for work 23,000…(a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars):Item Amount ($)Government purchase of goods and services 1,721.6Exports 1,096.3Receipts of factor income from the rest of the world 382.7Depreciation (consumption of fixed capital) 990.8Net fixed Investments 688.2Corporate income taxes 265.2Consumption expenditures 6,739.4Indirect business taxes 664.6Imports 1,475.8Payments of factor income to the rest of the world 343.7Inventory change 56.5Social security contributions 702.7Undistributed corporate profits (retained earnings) 130.3Government transfer and interest payments 1,366.3Personal interest payments 286.2Personal taxes 1,235.7 (b) Using the following data calculate: (i) The number of persons employed. (ii) The number of persons unemployed. (iii) The labour force. (iv) The Labour Force Participation rate. (v) The “official” unemployment rate. 987,156 Currently Working 23,000 volunteer workers9845 (ages 13-14) looking for…
- (a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars): Item Amount ($)Government purchase of goods and services 1,721.6Exports 1,096.3Receipts of factor income from the rest of the world 382.7Depreciation (consumption of fixed capital) 990.8Net fixed Investments 688.2Corporate income taxes 265.2Consumption expenditures 6,739.4Indirect business taxes 664.6Imports 1,475.8Payments of factor income to the rest of the world 343.7Inventory change 56.5Social security contributions 702.7Undistributed corporate profits (retained earnings) 130.3Government transfer and interest payments 1,366.3Personal interest payments 286.2Personal taxes 1,235.7(b) Using the following data calculate:(i) The number of persons employed. (ii) The number of persons unemployed. (iii) The labour force. (iv) The Labour Force Participation rate. (v) The “official” unemployment rate. 987,156 Currently Working 23,000 volunteer workers9845 (ages 13-14) looking for work…3) Answer the following questions about country A. a) What was GDP equal? b) What was the value of total production equal to? c) What approach did you use to make this calculation? Items RM (million) Agriculture, Forestry & Fishing 25874 Construction 89756 Mining & Quarrying 12345 Electricity, Gas & Water 96325 Manufacturing 70002 Government Services 78953 Wholesale, Retail, Hotel & Restaurant 258 Finance, Insurance & Real Estate 456 Transport, Storage & Communication 999 Other Services 451 Factor Income Paid Abroad 452 Indirect Taxes 200 Factor Income Received From Abroad 500 Subsidies - 85 Depreciation 891Q5) The following information is extracted from the National Income Accounts of an economy. Values 130 Particulars Exports of goods and services Depreciation Government expenditure Gross domestic investment 525 450 750 Imports of goods and services 135 27,500 Personal consumption expenditure Find the value of net domestic product.