Consumer spending in GDP measurement does NOT include spending by businesses on labor resources households on necessary expenses such as gasoline individual households on durable items such automobiles and computers. families on services such as healthcare students on tuition.

Consumer spending in GDP measurement does NOT include spending by businesses on labor resources households on necessary expenses such as gasoline individual households on durable items such automobiles and computers. families on services such as healthcare students on tuition.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 3

Consumer spending in GDP measurement does NOT include spending by

businesses on labor resources

households on necessary expenses such as gasoline

individual households on durable items such automobiles and computers.

families on services such as healthcare students on tuition.

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Question 2
Students are required to show ALL workings to be awarded the full marks for each part of this question. (a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars): Item Government purchase of goods and services Exports Receipts of factor income from the rest of the world Depreciation (consumption of fixed capital) Net fixed Investments Amount ($) 1,721.6 1,096.3 382.7 990.8 688.2 Corporate income taxes Consumption expenditures Indirect business taxes 265.2 6,739.4 664.6 Imports Payments of factor income to the rest of the world Inventory change Social security contributions Undistributed corporate profits (retained earnings) Government transfer and interest payments Personal interest payments Personal taxes 1,475.8 343.7 56.5 702.7 130.3 1,366.3 286.2 1,235.7
Use the table to answer the questions. Assume firms pay all profits out to resource owners, there is no depreciation, and there are no taxes. 2010 Consumption spending (C) $350 Rent $100 Profit $175 Investment spending (I) $75 Interest $50 Government spending (G) $125 Net exports (NX) $10 Employee compensation $ Enter the value of GDP in 2010. Use the factor income approach to calculate employee compensation in 2010.
Suppose GDP in this country is $690 million. Enter the amount for consumption. Value National Income Account (Millions of dollars) Government Purchases (G) 150 Taxes minus Transfer Payments (T) 210 Consumption (C) Investment (I) 165
URGENT
Question 3 Participants Cost of Value of Materials Sales Farmer $ 0 24 $ 100 Cone factory 100 250 and ice cream-maker Middleperson 250 400 Vendor 400 500 (i) Calculate the value added at each stage of production (ii) Calculate the contribution to GDP from the good
Question 11 Spending in Economy X Spending in 2017 Category $35 million Consumer $40 million Investment $30 million Government Exports $25 million Imports $25 million What is the Gross Domestic Product (GDP) for Economy X in 2017? $55 million B $105 million $130 million D $155 million 2021Iuminate EducationTM Inc.
Question 11 Gross domestic product (GDP) is best defined as the total market value of all a) final goods produced within a country within a given time. b) goods and services produced within a country within a given time. c) final goods and services produced within a country within a given time. d) goods produced within a country within a given time. e) services produced within a country within a given time.
Calculate the domestic sales of the firm if it's value added is $44,000 , exports are $23,000 and the purchase made are 50,000
Part 2: GDP is a measure of our economic well-being, though this measure omits some things that are important in describing how well-off we are. Provide 3 specific examples of things that your think are important to you or to society, but which are omitted from the GDP measure. Reply
Question 21 GDP can be calculated using the way people earn money (but not the way people spend money). the difference between the way people earn money and the way they spend it. the way people spend money (but not the way people earn money). either the ways people earn money or the ways people spend money.
URGENT What is the value added of the service sector?