QUESTION 55. You are given the following information about an economy:$millionsGDP at Market Prices1,,669.4290.5ImportsGross Domestic Capital FormationIncome accruing to the Public SectorRetained Business Earnings48.739.075.9273.4ExportsSubsidies16.8Factor Payments from AbroadCapital Consumption Allowance10.010.519.2Income Payments to ForeignersDirect TaxesPublic Sector Consumption ExpenditureIndirect TaxesTransfer Payments355.6490.1297.325.7Derive the following:(i)(ii)National IncomeNet InvestmentPersonal IncomeDisposable IncomeHousehold Consumption Expenditure

Given: GDP at Market Prices Imports=$1669.4 Imports=$290.5 Gross Domestic Capital Formation=$48.7…

5. You are given the following information about an economy: Smillions GDP at Market Prices 1,669.4 Imports Gross Domestic Capital Formation Income accruing to the Public Sector Retained Business Earnings Exports 290.5 48.7 39.0 75.9 273.4 Subsidies 16.8 Factor Payments from Abroad Capital Consumption Allowance Income Payments to Foreigners 10.0 10.5 19.2 Direct Taxes 355.6 Public Sector Consumption Expenditure 490.1 Indirect Taxes 297.3 Transfer Payments 25.7 Derive the following: (i) (ii) (iii) National Income Net Investment Personal Income

5. You are given the following information about an economy: Smillions GDP at Market Prices 1,669.4 Imports Gross Domestic Capital Formation Income accruing to the Public Sector Retained Business Earnings Exports 290.5 48.7 39.0 75.9 273.4 Subsidies 16.8 Factor Payments from Abroad Capital Consumption Allowance Income Payments to Foreigners 10.0 10.5 19.2 Direct Taxes 355.6 Public Sector Consumption Expenditure 490.1 Indirect Taxes 297.3 Transfer Payments 25.7 Derive the following: (i) (ii) (iii) National Income Net Investment 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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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…
. Calculate Subsidies. Particulars in crores (i) GNP at FC 27,710 (ii) Consumption of Fixed Capital 4,000 (iii) Indirect Taxes 120 (iv) Factor income from abroad 400 (v) NDP at MP 24,000 (vi) Factor income to abroad 600
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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.
gross private domestic investment $1593 personal taxes 1113 transfer payments 1683 taxes on production & imports 695 corporate income taxes 213 personal consumption expenditures 7304 consumption of fixed capital 1393 US Exports 1059 dividends 434 government purchases 1973 net foreign factor 10 undistributed corporate profit 290 sociual security contributions 748 US imports 1483 statistical discrepency 50 Refer to the accompanying national income data (in billions of dollars) CORPORATE PROFITS are equal to?
Given the following information: a. Transfer Payments = $54 %3D b. Interest Income (i) = $150 %3D c. Depreciation = $36 %3D d. Wages (W) = $67 e. Gross Private Investment = $124 f. Business Profits (PR) = $200 %3D g. Indirect Taxes = $74 h. Rental Income (R) =$75 i. Net Exports = $18 %3D j. Net Foreign Factor Income = $12 %3D k. Government Purchases = $156 I. Household Consumption = $304 Calculate GDP at MP, GDP at FC using the two approaches and NNP at FC.
Personal Taxes Social Security Contributions Rents Taxes on Production & Imports Corporate Income Taxes Interest Proprietors' In come Transfer Payments Dividends Compensation of Employees Exports Undistributed Corporate Profits Government Purchases Net Private Domestic Investment Imports Personal Consumption Expenditures Consumption of Fixed Capital (Capital Depreciation) Net Foreign Factor Income Corporate Profits Statistical Discrepancy $ Billions 35 15 28 31 20 31 26 52 43 16 320 45 36 55 35 25 395 45 10 83 -14 a. With the data above, clearly show your steps including the economic variables involved and calculate: 1. Gross Domestic Product (by any approach of your choice). Interpret your estimated GDP value. 2. National Income (by any approach of your choice). Interpret your estimated national income value. 3. Personal Income. Interpret your estimated personal income value.
If a consumer purchases a foreign-produced hair dryer at a department store, the value of the hair dryer is: a. included in both consumer purchases and exports. b. added to capital investment in equipment but then subtracted from consumer purchases. c. included in consumer purchases but then subtracted as part of imports. d. added to imports but then subtracted as part of exports. Please explain your answer
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.
Solve part 4 and part 5 only typed answer
7
I’m not understanding how to come up with this answer. A little explanation would be great!