**Transcription for Educational Website:****Question 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 _______ *(Cashing a savings bond is a financial transaction)*(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 _______

Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Answered: 3. Determine if the following would be…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

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 The loss of enjoyment people incur when scenic land is converted to commercial use Federal government paychecks to soldiers The import and sale of illegal drugs from South America When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase increases the component of GDP while also increasing net exports by the same amount. Therefore, the in US GDP. investment purchase of electronic parts from China causes no overall change
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
Problem I. Transfer Payments P54 Interest Income 150 Depreciation 36 Wages 67 Gross Private Investment (1) 124 Business Profits 200 Indirect Business Taxes 74 Rental Income 75 Net Exports (X-M) 18 Net Foreign Factor Income 12 Government Purchases (G) 156 Household Consumption (C) 304 Calculate the Gross National Income using Expenditure and Income Approaches.
d) The total government spending in a country 2. Which of the following is NOT included in the calculation of GDP? a) Investment spending b) Government spending c) Transfer payments d) Consumer spending 3. Which appro to calculating GDP measures the value of all final goods
If nominal GDP is 42,000 and real GDP is 40,000 what is the GDP deflator? A.) 1.05 B.) 200 C.) 105 D.) 112.5
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…
2. Activities included (and not included) in the calculation of GDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Included Excluded Scenario An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 25, 2020. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2020. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 14, 2020. A family buys the sedan on…
2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Scenario Included Excluded Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2020. It sells the table to a college student on December 24. You chop down a cherry tree on your property in California and make a dining room table in 2020. A similar table sells for $800 in a local furniture store. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 21, 2020. It sells the car at a dealership in San Francisco on February 10, 2020. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 10, 2020. Athleticus imports the pair…
Which of the following transactions count towards GDP? A The selling of an empty plot of land. в The real estate fees associated with the sale of an empty plot of land. Doing yard work on your lawn at home. Lending your shovel to your neighbor so they can work on their yard.
1. Farmer Brown produces $100 worth of milk. He sells $40 worth of the milk in the market and uses the rest to feed his pigs, which he sells in the market for $120. What is Farmer Brown's contribution to the nation's GDP?
Question 7 The expenditures approach to GDP equals a) Consumption + Gross Investment + Government Purchases + Net Exports. b) Employee Compensation + Profit + Net Property Income + Indirect Business Taxes + Depreciation - Income Earned Abroad. c) Consumption + Net Investment (Gross Investment-Depreciation) + Government Purchases + Net Exports. d) Employee Compensation - Profit - Net Property Income - Indirect Business Taxes-Depreciation - Income Earned Abroad.
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;

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS