Let's say that we have the following data on a country:- Compensation of Employees: $5,500- Rental Income: $2,000- Net Interest Income: $1,000- Profits (Total): $3,000- Capital Consumption Allowance (depreciation): $1,000- Indirect Business Taxes (IBT): $500- Value of all intermediate products: $1,000- Gross Investment: $1,200Which of the following statements is correct?- The country’s GDP is $13,000 and the country's NDP is $12,000.- The country’s GNP is $12,000 and the country's NNP is $11,500.- All of the listed options are inaccurate.- We do not have enough data to determine GNP and NNP.- The country’s GNP is $13,000 and the country's NNP is $12,000.- The country’s GNP is $13,500 and the country's NNP is $14,500.

here we calculate the value of GDP by using the given information and also change in NDP so the calculation of the following by using the given information and choose the correct option as follow-a) The country's GDP is $13,000 and the country's NDP is $12,000. The given data indicate that Income Method of measuring GDP can be used to calculate the GDP Calculate GDP (using Income Method) - GDP = Compensation of Employees + Rental Income + Net Interest Income + Profits + Capital Consumption Allowance + Indirect Business Taxes GDP = $5,500 + $2,000 + $1,000 + $3000 + $1,000 + $500 GDP = $13,000 so here we conclude that value of GDP is $13,000 The country's GDP is $13,000. Calculate the NDP - NDP = GDP - Capital Consumption Allowance NDP = $13,000 - $1,000 NDP = $12,000 The country's NDP is $12,000 Hence, the correct answer is the option (a) [The country's GDP is $13,000 and the country's NDP is $12,000].

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Economics

Gross Investment. .$1,200 Which of the following statements is correct? O The country's GDP Is $13,000 and the country's NDP Is $12,000. O The country's GNP is $12,000 and the country's NNP is $11,500. O All of the listed options are inaccurate. O We do not have enough data to determine GNP and NNP. The country's GNP is $13,000 and the country's NNP is $12.000. O The country's GNP Is $13,500 and the country's NNP is $14.50O.

Gross Investment. .$1,200 Which of the following statements is correct? O The country's GDP Is $13,000 and the country's NDP Is $12,000. O The country's GNP is $12,000 and the country's NNP is $11,500. O All of the listed options are inaccurate. O We do not have enough data to determine GNP and NNP. The country's GNP is $13,000 and the country's NNP is $12.000. O The country's GNP Is $13,500 and the country's NNP is $14.50O.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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