52. Accounting for trade in goods and servicesSuppose the following transactions occur during the current year:1. Tim orders 50 bottles of wine from a French distributor at a price of $30 per bottle.2. A U.S. company sells 200 spark plugs to a Korean company at $5.00 per spark plug.3. Brian, a U.S. citizen, pays $1,100 for a computer he orders from Dellosoft (a U.S. company).Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the currentyear.Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative.ConsumptionInvestmentGovernment PurchasesImportsExportsNet ExportsGross Domestic Product (GDP)Amount(Dollars)

Answered: 2. Accounting for trade in goods and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Accounting for trade in goods and services
Suppose the following transactions occur during the current year:
1. Tim orders 50 bottles of wine from a French distributor at a price of $30 per bottle.
2. A U.S. company sells 200 spark plugs to a Korean company at $5.00 per spark plug.
3. Brian, a U.S. citizen, pays $1,100 for a computer he orders from Dellosoft (a U.S. company).
Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current
year.
Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative.
Consumption
Investment
Government Purchases
Imports
Exports
Net Exports
Gross Domestic Product (GDP)
Amount
(Dollars)

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According to the expenditure approach, GDP will be calculated as the sum of the investment, consumption, government expenditure, and net exports. Net Export will be calculated as difference between exports and imports by a nation. As per income approach GDP will be computed as the sum of the factor incomes to the factors of production

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