1. The following table shows the National Income data for a country in a year 2019 Items RM billion 71 Public consumption expenditures Personal consumption 11 Public investment 3 Personal investment 5 Change in stock 14 Factor income received from 3 abroad Factor income paid abroad 2 Net export 13 Indirect taxes 2 EPF 3 Subsidies 1 SOCSO 1 Transfer payment 8 Income tax 2 Retained earning 1 Insurance premium 1 Based on the table above, calculate :- a. Gross Domestic Product at market price (GDPmp) b. Gross National Product at market price (GNPmp) c. Gross National Product (GNP) at factor cost d. National Income e. Personal income f. Disposable personal income

1. The following table shows the National Income data for a country in a year 2019 Items RM billion 71 Public consumption expenditures Personal consumption 11 Public investment 3 Personal investment 5 Change in stock 14 Factor income received from 3 abroad Factor income paid abroad 2 Net export 13 Indirect taxes 2 EPF 3 Subsidies 1 SOCSO 1 Transfer payment 8 Income tax 2 Retained earning 1 Insurance premium 1 Based on the table above, calculate :- a. Gross Domestic Product at market price (GDPmp) b. Gross National Product at market price (GNPmp) c. Gross National Product (GNP) at factor cost d. National Income e. Personal income f. Disposable personal income

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Review View Design Layout References Mailings Page Layout Assignment Questions: 1. Calculate the GDP by using both formulas, expenditure approach and income approach. Also calculate the Real GDP if CP1 for Year1 is 120 and CPI for Year 2 is 150 Million $ YEAR 1 Consumption Indirect Taxes 6,200 200 1,600 800 Investment Depreciation Interest 400 500 500 Corporate Profit Exports Compensation of Employees Government Purchases 6,300 1,000 800 Direct Taxes 1,100 700 Saving Imports Rent 400 Million $ YEAR 2 Government Purchases 2500 Wages 4000 Interest 500 Proprietor's Income Consumption Depreciation Investment 2000 3000 200 1500 Indirect Taxes 300 700 Savings Imports 9000 dow Rent 1000 Еxports 10000 Hail English (U.S.)
The following table shows the national income data for an economy in year 2020. ITEMS Dividends Interest on government loan Undistributed profit Gross interest Subsidies Corporate income taxes interest on consumer loan Indirect taxes Gross Domestic Product at factor cost Depreciation Wages and salaries Rent Corporate income before taxes You are required to calculate: (a) net interest. (b) corporate profit. (c) National Income. (d) Gross National Product at factor cost. Net factor income from abroad. RM (Million) 160 100 125 990 120 180 90 160 4,370 250 1,080 645 710
ITEMS RM (millions) Agriculture 18,000 Mining 12,000 Manufacturing 22,000 Constructions 8,000 Electricity, gas and water 1,800 Transportation and communication 900 Indirect tax 800 Subsidies 700 Government services 1,700 Other services 900 Capital consumption 500 Income received from abroad 750 Income paid to abroad 450 Based on the table above, calculate: Gross Domestic Product (GDP) at market price. Gross Domestic Product (GDP) at factor cost. 3. Gross National Product (GNP) at factor cost
6. Limitations of GDP 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 scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The quality of goods available to consumers O The loss of enjoyment people incur when scenic land is converted to commercial use The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government O Federal government paychecks to soldiers When a U.S. company purchases and imports automotive parts from Canada to use to build cars within the United States, this purchase increases the net exports by the same amount. Therefore, the purchase component of GDP while also in US GDP. automotive parts from Canada causes
2. Saving and investment in the national income accounts The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,800 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases (G�) Taxes minus Transfer Payments (T�) 585 Consumption (C�) 675 Investment (I�) 675 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S)National Saving (�) = = G - TG - T = = I� million Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private SavingPrivate Saving = = = = million Public SavingPublic…
Compute for GNP using Expenditure, Income, and Valued Added Approach. Personal Consumption Expenditures Rents, Interests, Dividends, Wages 1,100,000 950,000 Government Income 35,000 Indirect Taxes 130,000 Exports of goods and non-factor services Fixed Capital Formation Forestry 650,000 270,000 55,000 Government Services 120,000 Imports of goods and non-factor services Subsidies 640,000 5,000 Trade 280,000 Increase in Stocks Corporate Income Depreciation Allowance General Govemment Consumption Expenditures Net Factor Income from Abroad Agriculture 7,000 60,000 17,000 80,000 20,000 550,000 Real Estate 150,000
From Table 1.1.6 (Chained Dollars), what was GDP in the year 2000 (billions of dollars)?
NATIONAL INCOME DATA (in current prices) 1992 III Personal consumption expenditures Gross private domestic investment Government purchases of goods and services 01. Based on this table, the Gross Domestic Product is $ (in billions of dollars) Exports Imports Capital consumption allowance (depreciation) Source: Survey of Current Business, Vol. 72, Number 10, (October 1992), p. 8, 10 billion. 4,105.0 776.9 1,122.5 626.8 664.2 697.3
2. Which of the following will decline in US GDP according to national income accounting? a. An decrease in government financial assistance to families for groceries and food paid for by income tax revenue b. an increase in imports from China a drop in salaries paid to soldiers in the US military с. d. an old bridge collapses and is left un-repaired and untouched the entire year е. none of the above
8. KEY QUESTION Below is a list of domestic output and na-tional income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The results you obtain with the different methods should be the same. Personal consumption expenditures $245 Net foreign factor income 4 Transfer payments 12 Rents 14 Statistical discrepancy 8 Consumption of fixed capital (depreciation) 27 Social Security contributions 20 Interest 13 Proprietors’ income 33 Net exports 11 Dividends 16 Compensation of employees 223 Taxes on production and imports 18 Undistributed corporate profits 21 Personal taxes 26 Corporate income taxes 19 Corporate profits 56 Government purchases 72 Net private domestic investment 33Net private domestic investment 33 Personal saving 20a. Using the above data, determine GDP by both the ex-penditures and the income approaches. Then determine NDP. b. Now…
7- The__________refers to the sum of all current incomes received by the individuals or households from all sources within the domestic territory of a country during an accounting year. a. National income b. Private income c. Personal income d. Passive income