Consider the following information for the U.S. economy in 2003 (figures in billions). Personal Consumption Gross private investment Government consumption and gross investment Net exports Indirect business taxes Depreciation Self-employment Income $7,761 1,666 2,075 -498 339 1,380 834 Refer to Exhibit 7-2. Gross domestic product is equal to

Consider the following information for the U.S. economy in 2003 (figures in billions). Personal Consumption Gross private investment Government consumption and gross investment Net exports Indirect business taxes Depreciation Self-employment Income $7,761 1,666 2,075 -498 339 1,380 834 Refer to Exhibit 7-2. Gross domestic product is equal to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the following data are from the Economic Report of the President for the current year. Use the data in this table to answer the questions that follow. National Income Data Spending Category Corporate profits Depreciation Gross private domestic investment Personal taxes Personal saving Government spending Imports Net interest Compensation of employees Rental income Exports Personal consumption expenditures Indirect business taxes Contributions for Social Security (FICA) Transfer payments and other income Proprietors' income Amount (Billions of dollars) 305 490 716 565 120 924 547 337 2,648 19 427 2,966 370 394 967 328 Given the values in the table, the value of national income (NI) is $ billion National income is a better measure of economic performance than GDP because it adds subtracts the loss in capital value measured by depreciation.
Gross Domestic Product (GDP) gross domestic product = consumption + investment + government purchases + net exports GDP = C + I + G + (X − M), calculate GDP using the expenditure approach. Inventory investment $50 billion Fixed investment $120 billion Consumer durables $420 billion Consumer nondurables $275 billion Interest $140 billion Indirect business taxes $45 billion Government wages and salaries $300 billion Government purchases of goods and services $110 billion Imports $80 billion Exports $40 billion Profits $320 billion Services $600 billion
QUESTION 3 Refer to the table (all figures in billions of dollars). The national income (NI) for this economy is #3 Items Amount (i) (1) Personal Taxes $40 (2) Social Security Contributions $15 (3) Taxes on Production and Imports $20 (4) Corporate Income Taxes $40 (5) Transfer Payments $22 (6) U.S. Exports $24 (7) Undistributed Corporate Profits $35 (8) Government Purchases $90 (9) Gross Private Domestic Investment $75 (10) U.S. Imports $22 (11) Personal Consumption Expenditures $250 (12) Consumption of Fixed Capital $25 (13) Net Foreign Factor Income $10 (14) Statistical Discrepancy $0 $314 $362 $382 O $402 O $417 O 0 0 0 0
Gross domestic product is a measure of _______.the nonmarket production of goods and services.the volume of goods and services, which involved in international tradethe goods and services produced strictly by corporations.the money value of all final goods and services produced in a year by the economy.the size of the largest industry in an economy.
What is the value for Gross Domestic Product if households receive $315 in net interest income, wages equal $10,169, rental receipts on land are $884, total business profits before taxes are $1,862, and indirect business taxes are $1,139? Assume depreciation and net foreign income are zero. Enter the value without a $ and without commas.
Consider a country where the adult population (about 1 million) include skilled and unskilled workers, retirees, and students. There are many firms (domestic-owned and foreign-owned), and trading occurs with a neighboring country. At the end of 2018, the nation's bureau of economic analysis preliminary report stated that the country's 2018 gross domestic product is $12.8 billion. (Question 4 of 5) Consider that at the beginning of 2019, the following additional information was obtained with a note that while these activities occurred in 2018, they were not included in the preliminary report. For each activity, state whether it should be included in the calculation of the country's 2018 GDP, the component of GDP it would affect if included, and whether this activity will increase, decrease, or not change the preliminary value calculated. The juniors at one of the high schools were able to raise $5,000 from cake sales for their prom. This event the reported preliminary value of the…
Assume you bought the following items last year: a new Honda CRV built in Ohio, a used boat, a jacket made in France, 500 shares of stock, a movie ticket, and a cheeseburger. Which of these items should likely be counted in last year’s gross domestic product?
Gross domestic product (GDP) is a key measure of the national economy. a) Define GDP and describe three ways of calculating the size of GDP in an economy
1. Based on this table, the Gross Domestic Product is $_______ billion.