Consider the following components of GAVbp: Agriculture, Forestry and Fisheries = 2072 Industry = 18723 Services = 34195 and the following additional data: Indirect taxes net of subsidies = 3859 Fixed capital consumption = 6388 Imports = 12034 Exports = 10357 Calculate the amount of: a) GDPmp. b) Internal Demand or Internal Procurement

Federal excise taxes on gasoline vary widely across the developed world. The United States has the lowest taxes at USD $0.40 per gallon (or £0.07 per liter), Canada has taxes of $0.60 per gallon, Japan and much of Europe is $2.00 per gallon, while Britain has the highest tax at $2.83 a gallon or £0.5 per liter. If gasoline taxes are intended to reduce the time losses from road congestion in urban environments and gasoline pre-tax costs about £0.40 per liter, why might the optimal tax in Canada be 50 percent higher than in the United States? What would be an explanation for why adjacent countries would have such different estimates of the price elasticity of demand for auto driving?16

Agricultural price supports result in governments holding large inventories of agricultural products. Why do you think the government cannot simply give the products away to poor people?