7.Q Below is a list of domestic output and national income figures for a given year. All figures abillions. The questions that follow ask you to determine the major national income meastboth the expenditure and income methods. Provide how you calculated!Personal consumption expendituresNet foreign factor incomeStatistical discrepancyConsumption of fixed capital (depreciation)ImportsЕxportsPersonal taxes$243427433326Government purchasesNet private domestic investmentPersonal savinga. Gross private domestic investment (Ig) is = $723320b. Net Exports (Xn) is: $c. GDP by the expenditure approach =C+ Ig + G+ Xn= $d. NDP: $_e. NI by making the required additions and subtractions from GDP is: $

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Answered: 7. () Below is a list of domestic…

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. Components Wages and salaries Rent, dividend & interest Companies distributed profits Companies undistributed profits Transfer payment Factor income received from abroad Factor income paid abroad Personal income tax EPF SOCSO Retained earning Depreciation Insurance premium Calculate : a. GDI b. GNI C. NNI d. Personal Income e. Personal disposable income RM/ Billion 90 40 60 20 10 30 15 9 5 4 5 3 6
6. Gross private domestic investment (Ig) vs. net private domestic investment (In)? I Gross private domestic investment (Ig) (plus, minus, multiply by, divide by) depreciation is net private domestic investment (In). That is, In = Ig – Depreciation. (D_ of all the physical capital-machines, equipment, buildings-used up in producing the year's output. is the value The difference between gross domestic product (GDP) and net domestic product (NDP) is the value of the c_ net ) private investment expenditures. NDP includes (gross, net ) private investment expenditures after the depreciation allowance has been subtracted from gross investment. NDP is simply GDP adjusted for d_ the expenditures approach, net private domestic investment (In) measures of investment spending would be appropriate. off_ or depreciation allowance. GDP includes (gross. If you were to determine net domestic product (NDP) through
1. From the table below, gross domestic product equals: a. $1,110 b. $1,265 c. $1,470 d. $1,695 Personal Income Taxes $130 Government Purchases of Goods and $150 Services Gross Private Domestic Investment $230 Net Interest $75 Sales Taxes Net Exports of Goods and Services Personal Consumption Expenditures Depreciation $35 $55 $725 $175
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 costs of overfishing and other overly intensive uses of resources Expenditures on federal highways The variety of goods available to consumers The value produced by doing your own laundry When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of wood in US GDP. from Brazil causes
3. The market value of all final goods and services produced in the country during the year, regardless of whether there are factors of production of the residents of the country or owned by foreigners-is: a) gross domestic product; b) gross national product; c) the GDP deflator; d) net national product; e) national income.
Bureau of Economic Analysis Table 1.1.6. Real Gross Domestic Product, Chained Dollars [Billions of chained (2012) dollars] Seasonally adjusted at annual rates Last Revised On: Mar 26 2020 8:30AM-Next Release Date: Apr 29 2020 8:30AM Line 123 4 S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Gross domestic product Personal consumption expenditures Goods Durable goods Nondurable goods Services Gross private domestic investment Fixed investment Nonresidential Structures Equipment Intellectual property products Residential Change in private inventories Net exports of goods and services Exports Goods Services Imports Goods Services Government consumption expenditures and gross investment Federal National defense Nondefense State and local Residual 2018 18,638.2 12,944.6 4,583.3 1,685.7 2,909.6 8,388.1 3,360.5 3,293.4 2,692.3 540.9 1,255.3 901.6 602.9 48.1 -920.0 2,532.9 1,782.8 755.4 3,453.0 2,916.1 539.9 3,223.9 1,232.2 737.5 494.2 1,990.0 2.1 2019 19,073.1 13,280.1 4,754.6…
Item Consumption expenditure. Investment Government expenditure on goods and services Exports of goods and services Imports of goods and services 8. Based on the data in the table, what does GDP equal? O $11,183 billion O $11.023 billion O $11.103 billion O $12.393 billion Billions of Dollars 8180 1520 1403 1290 1370
5. Table: Hypothetical Canadian National Income and Product Accounts Data Category Consumption (personal consumption expenditures) Investment (gross private domestic investment) Government consumption (government expenditures) Exports Imports Foreign income payments to domestic factors Domestic income payments to foreign factors Net unilateral transfers The GNI for the economy is: a. $10 billion. b. $20 billion. c. $780 billion. $790 billion. d. Billions of Dollars 400 150 80 210 60 20 10
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7- : What is the total expenditure made by consumers on the purchase of goods and services called? a) Net foreign trade B) Savings spending NS) Consumption expenditure D) investment expenditure TO) public spending
Real GDP $0 10 40 70 100 130 160 Consumption Gross (after taxes) Investment Net Exports $10 $+5 10 +5 10 +5 10 +5 10 +5 10 +5 10 +5 -$20 0 20 40 60 80 100 O Refer to the table. A decrease in government purchases of $5 would Multiple Choice decrease real GDP by $5. decrease real GDP by $15. increase real GDP by $5. Government Purchases $15 15 15 15 15 15 15 increase real GDP by $10.

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