5. You are given the following information about an economy: Gross private domestic investment = 40 Government purchases of goods and services Gross national product (GNP) = 200 Current account balance = -20 = 30 %3D Taxes = 60 Government transfer payments to the domestic private sector = 25 %3D Interest payments from the government to the domestic private sector = 15 (Assume all interest payments by the government go to domestic households.) Factor income received from rest of world = 7 %3D Factor payments made to rest of world Find the following, assuming that government invest- ment is zero: a. Consumption b. Net exports c. GDP

5. You are given the following information about an economy: Gross private domestic investment = 40 Government purchases of goods and services Gross national product (GNP) = 200 Current account balance = -20 = 30 %3D Taxes = 60 Government transfer payments to the domestic private sector = 25 %3D Interest payments from the government to the domestic private sector = 15 (Assume all interest payments by the government go to domestic households.) Factor income received from rest of world = 7 %3D Factor payments made to rest of world Find the following, assuming that government invest- ment is zero: a. Consumption b. Net exports c. GDP

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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) The net exports include a. the sum of imports minus exports. b. the sum of exports minus imports. c. capital outflows minus capital inflows. d. capital inflows minus capital outflows.
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Table 4.7.1 Inventory Investment $20 Net Exports -$100 Small Business Capital Consumption Household $65 Consumption Non-Profit Capital Spending $800 Government Capital Spending $30 $12 Government Net Operating Capital Consumption Government $35 $115 Surplus Non-Profit Consumption Business Capital Spending $200 Consumption Wages and Salaries $15 $400 $700 Corporate Capital Consumption Employers' Social Contributions Net Mixed Income $100 $150 Taxes Less Subsidies $130 $100 60) Refer to Table 4.7.1. What is GDP? Select one: a. 1054 b. 1236 c. 1386 d. 1452 e. 1501
2. The current account of the balance of payments is calculated as: a. the sum of imports, exports, and transfers. b. the sum of national income and national expenditure. c. the sum of the trade balance, net factor income from abroad, and net unilateral transfers. d. the difference between GDP and GNE.
Current Account Value Exports of goods 107,941 Exports of services 44,133 Primary income receipts 36,063 Imports of goods 132,484 Import of services 29,443 Primary income payments 29,750 Net unilateral -8,349 transfers Capital account -63 Net acquisition of 20,972 financial assets Net incurrence of liabilities 54,471 Financial derivatives Statistical discrepancy Based on the table above, the balance on services is -9,853 -14,690 9,853 14,690
Solve part 4 and part 5 only typed answer
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4. Foreign payments to capital, labor, and land owned by domestic entities minus payments to factorservice imports equals: a. the difference between gross national income and gross domestic product. b. the difference between imports and exports. c. the difference between unilateral transfers and domestic income.d. income not subject to taxation such as capital gains, illegal earnings, or casual earnings
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My dear bro not hand written.
B. The table below lists Jamaica's transactions in 2007. Particulars $ Consumers' expenditure 100 000 Government expenditure 40 000 Gross investment 37 000 Value of increase in stock 2 000 Exports of goods 18 000 Imports of goods 17 130 Income paid abroad 7 400 Income received from abroad 7 900 Subsidies 1 390 Taxes on expenditure 1 740 Capital consumption 5 500 Calculate: i. GDP at market price i1. GDP at factor cost iii. GNP at factor cost iv. National Income at factor cost C. Comment on THREE (3) types of information that national income statistics provide.
8.. If domestic saving is less than domestic investment, then investment can be financed by: the budget deficit new savings instruments foreign saving higher rates of inflation higher interest rates