1. Problems and Applications Q1 Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Transaction You purchase a box of Belgian chocolate. Dell sells a desktop computer from its inventory to the Johnson family. California hires workers to repave Highway 101. You pay a domestic plumber for fixing a leak in your bathroom. Uncle Paul pays a domestic contractor for renovating his home. Honda expands its factory in Ohio. The federal government sends your grandmother a Social Security check. Your parents buy a new house from a local builder. Consumption Investment O 00 O 0 0 0 Government Purchases O Net Exports 00

1. Problems and Applications Q1 Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Transaction You purchase a box of Belgian chocolate. Dell sells a desktop computer from its inventory to the Johnson family. California hires workers to repave Highway 101. You pay a domestic plumber for fixing a leak in your bathroom. Uncle Paul pays a domestic contractor for renovating his home. Honda expands its factory in Ohio. The federal government sends your grandmother a Social Security check. Your parents buy a new house from a local builder. Consumption Investment O 00 O 0 0 0 Government Purchases O Net Exports 00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Problems and applications Q1
Analyze how much Pakistan’s GDP and each of its components is affected by the following transactions? Explain your answers (Maximum 200 words). i. Bank Al Habib issues new shares to finance the construction of an office in Sukkur, Sindh. ii. Sadia spends 50000 on a computer to use in her editing business in Karachi. She got last year’s model on sale for a great price from a local manufacturer. iii. You mother spend weekend cleaning your apartment and your brother pays a shopkeeper to buy a laptop in Karachi
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1. Check on the table below the factors that measure national income. Choose only three from the list and write down an example that represents to it. Measures of National Income Example 1. Gross Domestic Product 2. Gross National Product 3. Net National Product 4. NNP at Factor Cost 5. Personal Income 6. Disposable Personal Income
Consumption Investment Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. 3. Problems and Applications Q1 Transaction Uncle John receives a check from the federal government for unemployment insurance benefits. You pay a hairdresser for a haircut. New York hires workers to plow snow after a snowstorm. Uncle Henry buys a new refrigerator from a domestic manufacturer. Uncle John orders 10 new computers for his finance business. Ford sells a Mustang from its inventory to the Martinez family. Ford manufactures a Focus and adds it to its inventory. You buy a new Toshiba computer. ☐ ☐ ☐ ☐ Government Purchases Net Exports ப ☐ ☐ ☐ ☐ ☐ 000
You are an economist calculating the Gross Domestic Product of Oman. To calculate GDP, you will __________. a. Divide the price with the quantity of all the products and services produced in Oman. b. Subtract the price with the quantity of all the products and services produced in Oman c. Add the price and quantity of all the products and services produced in Oman d. Multiply the price with the quantity of all the products and services produced in Oman.
Question 4 Which of the following transactions are viewed as investment in the national income (GDP) accounts? (a) You buy $1000 of federal government bonds; (b) Richard, a carpenter, builds himself a log cabin: (c) The Art Gallery of Nova Scotia buys a painting by Picasso for $20 million. (d) Your family buys a newly constructed home. (e) Apple Computer Corporation builds a new factory to manufacture computers;
1. Which of the following are included in this year’s GDP? Explain your answer in each. A 2-hour decrease in the length of the workweek. The purchase of an AT&T corporate bond. A $2 billion increase in business inventories.
GDP Deflator (NomGDP/Real GDP)*100 88.4 Assignment 3 Chapter 6. Determine if each of the following would be included or not included in USA GDP for 2020. All transactions occurred in 2020. Circle Yes or No 1. Rebecca real estate agent sells a house built in 2014 for $1,500,000. Yes No 2. $250,000 Bushels of wheat produced in 2020 were exported to Mexico. Yes No 3. Michael, a US citizen works over in Germany producing automobiles. Yes No 4. A Mickey Mantle Rookie card is sold on EBAY for $60,000. Yes No 5. John takes his family out for dinner at Shake Shack Dec 15,2020. Yes No 6. Quark company purchases $5,000,000 of new property, plant, and equipment. Yes No 7. The Government employees Higgs Inc. to repair the roads in Washington DC at a cost of $2,500,000. Yes No 8. Veronica secretly sells Marijuana out of her laundry mat and makes $750,000 revenue for 2020. Yes No 9. General Motors has $35,000,000 Work in Process inventory on Dec 31, 2020 Yes No
67. GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.
Which of the following transactions are or are not included in GDP? 1. The pollution created when building an electric car battery. 2. Your parent washes, dries, and folds your laundry. 3. You consume a meal at Jack in the Box. 4. You buy a Rolex watch on the streets of Redwood City. 5. You volunteer to help clean up at your church after services on Sunday. 6. You write a Yelp review of Dr. Eck's restaurant.