32. Giving reason explain how should thefollowing be treated in estimatingGross Domestic Product at Market Price ?(i) Fees to a mechanic paid by a firm.(ii) Interest paid by an individual on a car loantaken from a bank.(iii) Expenditure on purchasing a car for use by afirm

GDP at market prices is the end result of resident producer units' production activity. It is…

Answered: 32. Giving reason explain how should…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. Expenditures and Income Approaches Consumption Expenditures Wages Taxes on Production and Imports Government Purchases Statistical Discrepancy Imports Undistributed Corporate Profits Rent Proprietor's Exports Dividends Depreciation Income Interest Gross Private Domestic Investment Corporate Income Taxes Corporate Profits Net Foreign Factor Income $69000 $76000 $16000 $58000 $11000 $47000 $14000 $42000 $15000 $34000 $22000 $24000 $31000 $41000 $18000 $54000 $17000 Complete parts a and b. a. Given the numbers above, solve for Real GDP using the expenditures approach. Given the numbers above, solve for the National Income (NI). b.
Suppose we have the following information about a car manufacturer: car sales £1000, steel purchases £600, wages £300, interest on business loans £50, and profits £50.What is its contribution to GDP using the product approach?(a) £1,000.(b) £600.(c) £400.(d) £350.(e) £160.
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…
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?
Calculate the value of gross value added at market price when it's given that the value of output is $800 million and the intermediate consumption is $380 million in the Economy
Using the information below, what is the Gross Value Added at Market Price? Output Sold 800 Price per unit of output 20 Import Duty 400 Net change in stock -500 Intermediate Consumption 8000 a. 7900 b. 6500 c. 2100 d. 7500
In the figure below match each (*) letter with the appropriate term(s) in the drop down menu. B BUSINESS SECTOR *N A .C *D F .L *M *FINANCIAL INTERMEDIARIES *H K
2. Consider country Dreamland produces only one final goods, sand witch involving with various production process. The stages of production of sandwitch the fiscal year 2020 have been considered the table below Stages of Production Wheat Flour Dough Bread Sandwitch Market Value 280 320 350 420 500 Suppose, 80 billion taka of flour and 120 billion taka of bread have been used as final consumption in fiscal year 2020. Using these restrictions, estimate the Gross Domestic Product (GDP) based on value addition method. Verify GDP by using expenditure method, and compare these two estimations.
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
29.The income approach to measuring GDP: A) B) c) focuses on how income is earned, not spent. uses the factors payments made by households to businesses to estimate GDP. uses household expenditures to back out national income and GDP. D) uses of the factor payments made by household to government 30. National income is a sum of: a) spending of four sectors of the economy on GDP. b) payments to the factors of production. c) factors payments made by household to government d) factors payments made by business to government.
Please show proper computation and explanation for me to understand it better. Thank youuuuu
The value of national income is $3100 million and the value of net factor income from abroad is $600 million Calculate the value of NDPFC

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32. Giving reason explain how should the following be treated in estimating Gross Domestic Product at Market Price ? (i) Fees to a mechanic paid by a firm. (ii) Interest paid by an individual on a car loan taken from a bank. (iii) Expenditure on purchasing a car for use by a fırm