) Citizens of the country of Blackland produce and export oil and import food. In 2000 they produced $100 million worth of oil, all sold to neighbouring coun- tries. They purchased $60 million worth of food from neighbouring countries, all consumed by domestic citizens. At the beginning of 2000, the country of Black- land's net foreign asset position is $1,000 million and the rate of return on their net foreign asset position is 2%. Calculate the gross national product (GNP) of Blackland. (A) $100 million (B) $120 million (C) $160 million (D) $180 million

) Citizens of the country of Blackland produce and export oil and import food. In 2000 they produced $100 million worth of oil, all sold to neighbouring coun- tries. They purchased $60 million worth of food from neighbouring countries, all consumed by domestic citizens. At the beginning of 2000, the country of Black- land's net foreign asset position is $1,000 million and the rate of return on their net foreign asset position is 2%. Calculate the gross national product (GNP) of Blackland. (A) $100 million (B) $120 million (C) $160 million (D) $180 million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Personal Taxes Social Security Contributions Rents Taxes on Production & Imports Corporate Income Taxes Interest Proprietors' In come Transfer Payments Dividends Compensation of Employees Exports Undistributed Corporate Profits Government Purchases Net Private Domestic Investment Imports Personal Consumption Expenditures Consumption of Fixed Capital (Capital Depreciation) Net Foreign Factor Income Corporate Profits Statistical Discrepancy $ Billions 35 15 28 31 20 31 26 52 43 16 320 45 36 55 35 25 395 45 10 83 -14 a. With the data above, clearly show your steps including the economic variables involved and calculate: 1. Gross Domestic Product (by any approach of your choice). Interpret your estimated GDP value. 2. National Income (by any approach of your choice). Interpret your estimated national income value. 3. Personal Income. Interpret your estimated personal income value.
6.6) Which of the following statements about the open-economy IS curve is correct (a) It is steeper than the closed-economy IS curve because net export depends posi- tively on domestic income. (b) It would shift upward when the domestic government relaxes its import quotas. (c) All of the above. (d) None of the above.
C-. In 2001, the United Kingdom's economy exported goods worth £192 billion and services worth another £77 billion. It imported goods worth £225 billion and services worth £66 billion. Receipts of income from abroad were £140 billion while income payments going abroad were £131 billion. Government transfers from the United Kingdom to the rest of the world were £23 billion, while various U.K government agencies received payments of £16 billion from the rest of the world. a. Calculate the U.K. merchandise trade deficit for 2001. b. Calculate the current account balance for 2001. c. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
Assume in 2010, 1 Swiss franc cost.55 British pounds and in 2012 it cost .52 British pounds. How much would 1 British pound purchase in Swiss francs in 2010 and 2012? O 2010: 1.81 francs, 2012: 1.92 francs 2010: 1.78 francs, 2012: 1.96 francs O 2010: 1.71 francs, 2012: 2.00 francs O 2010: 1.73 francs, 2012: 1.97 francs
An open economy with absolute mobility of capital is described as follows: consumption function is given as C = 50 +0, 8(Y - T), where Y is output, and T is net taxes, Investment function is given as I = 20-10i, where I is nominal interest rate. Government spending G 22-4E+0, 3Y where E - nominal exchange rate (price of foreign currency in terms of domestic currency). For one unit of foreign currency, you can get 3 units of domestic currency. The real money supply is M* /P= 50. The demand for real money is described by the following function: L(Y,i) = 0, 5Y-10i. 20, tax Tr = 10, export Ex = 6E +10, import Im %3D Find BP curve, if the economy is initially in the internal and external equilibrium. Write an equation for BP without spaces and % signs
A5)
6. Debtors and creditors - Net international investment position Suppose that at the end of 2014, the value of U.S.-owned assets abroad is $15,888 billion, and the value of foreign-owned assets in the United States (which are U.S. liabilities) is $16,953 billion. The net international investment position of the United States in 2014 is $ experiencing debt.) billion. (Hint: Be sure to include a negative sign if the U.S. is Suppose that in 2015, the United States runs a current account surplus of $514 billion. If other factors remained constant, the net international investment position of the United States would during 2015 to $ billion. Suppose that during 2015, the U.S. net external debt decreases by $393 billion from the previous year. Given the current account balance, which of the following can explain this outcome? Check all that apply. U.S.-owned assets held abroad depreciated (lost value). The U.S. current account deficit was greater than the country's net borrowing.…
5. You are given the following information about an economy: Gross private domestic investment = 40 Government purchases of goods and services = 30, Gross national product (GNP) = 200 %3D %3D Current account balance = -20 %3D Taxes = 60 Government transfer payments to the domestic private sector = 25 Interest payments from the government to the domestic private sector = 15 (Assume all interest payments by the government go to domestic households.) Factor income received from rest of world = 7 Factor payments made to rest of world = 9 Find the following, assuming that government invest- ment is zero: a. Consumption b. Net exports C. GDP d. Net factor payments from abroad e. Private saving f. Government saving 8. National saving
Your friend, a loyal Apple customer, has set out a table of Apple’s net sales also adding his/her expectations about 2021 developments. Knowing that US dollar is strengthening against foreign currencies, do you agree with the 2021 net sales figures of iPad and Services?
10. Which of the following would cause a financial account (FA) surplus?a. the sale of heavy trucks used in construction by a domestic seller to a foreign buyer b. the purchase of stock in a U.S. corporation by a U.S. buyer c. the purchase of stock in a U.S. corporation by a foreign buyer d. the sale of stock in a U.S. corporation held by a foreign owner to a domestic buyer
A large open economy has desired national saving of Sd = 1200 + 1000rw, and desired national investment of Id = 1000 - 500rw. The foreign economy has desired national saving of = 1300 + 1000rw, and desired national investment of = 1800 - 500rw. Suppose the foreign country's government increases its spending by 300 and private saving does not change. Then in equilibrium, the foreign country has net exports equal to____
MC Qu. 41-33 The plus items In the table... (1) Goods Exports (2) Balance on Capital Account +$200 (3) Net Transfers (4) Imports of Services (5) Net Investment Income (6) US Purchases of Assets Abroad -100 -50 (7) Goods Imports -250 (8) Foreign Purchases of Assets in +150 the US (9) Exports of Services 450 The plus items in the table are "export-type" entries and the minus items are "import-type" entries In the balance of payments for the hypothetical country of Zippo. The financial account items for Zippo are