With reference to the table given above, calculate: i. Gross Domestic Product at factor cost ii. Gross National Product at factor cost iii. National Income iv. Personal Income v. Disposable Income The following are extracts from the national income account of a country.RM (MILLION)4,150900COMPOSITIONCompensation of employeesCorporate profitRent370InterestProprietor's incomeTransfer paymentTax on companies' profitDepreciationPersonal income taxesEmployees Provident FundIncome paid abroad700850500200200650650480Indirect taxes450Income received from abroad600Undistributed profits620

"Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Answered: With reference to the table given…

With reference to the table given above, calculate: i. Gross Domestic Product at factor cost ii. Gross National Product at factor cost iii. National Income

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Wages $20,000 Rental Income $5,000 Consumption $50,000 Profits $65,000 Investment $54,000…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: Which of the following would be included in the gross domestic product (GDP) of the United States?…

A: Introduction GDP is a measure of the total value of products and services generated inside a…

Q: The GNP of a country is $200 billion, receipts of factor income from the rest of the world are $10…

A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…

Q: All figures are in billions of dollars: Gross Private Domestic Investment 848.3 Proprietor's Income…

A: GDP = Compensation of employees + mixed income of self employed + operating surplus + depreciation +…

Q: Gross Domestic Product (GDP) in 2011 would include which of the following transactions? (A) The…

A: Gross domestic product (GDP) is the final monetary value of goods and services produced in a given…

Q: Gross Domestic Product a. In 1803 the United States purchased Louisiana and other territories…

A: GDP Deflator is an aggregate level measure of inflation than producer price inflation and retail…

Q: g. Calculate 2013 exports as a percentage of imports. h. Calculate 2013 government purchases on…

A: Government spending is one of the important part of aggregate spending in the economy.

Q: national income accounts for the U.S. for 2005 billions of dollars billions of chained (2000)…

A: Nominal GDP and real GDP are two different methods of GDP calculation.

Q: Question 26 To avoid double counting when calculating gross domestic product (GDP), it is best to…

A: To avoid the problem of double counting, only value added at each stage of production should be…

Q: What is the term for the total value of goods and services produced within a country's borders in a…

A: In financial matters, the estimation of a country's monetary results and execution are basic for…

Q: Which of the following goods would be included in the calculation c gross domestic product? Steel…

A: Gross domestic product (GDP) is the total value of goods and services that are produced domestically…

Q: hich of the following would be included in the calculation of gross domestic product (GDP)? The…

A: The gross domestic product refers to the production of goods and services during an accounting year.…

Q: Which of the following is not included in the computation of the consumption component of gross…

A: The consumption function does include spending on durable and nondurable goods, and services in the…

Q: Gross Domestic Product If nominal GDP in 2005 was $13095.4 billion and the GDP deflator (price…

A: Nominal GDP in 2005 = $13095.4 billion GDP deflator = 100 Nominal GDP includes both the growth and…

Q: Proprietors' income Based on the data table, personal income is equal to $ 328 Based on the data…

A: Disposable income is total personal income minus current income taxes. In national accounts…

Q: A country’s private consumption is 30, government spending is 7, investment is 5, net factor income…

A: Gross national income (GNI) measures the country's economic performance and it calculated by adding…

Q: COMPONENT R millions Consumption expenditure (C) 9 000 Investment (I) 6 500 Government spending (G)…

A: We will use expenditure method of calculating national income.

Q: In an economy, the total spending by households (consumption) is $800 billion, business investment…

A: The Gross Domestic Product (GDP) is a vital economic indicator that measures the total value of all…

Q: Why does gross domestic product measure the final value of goods and services produced in a country…

A: Final goods are those goods standard measure of the value-added created by the production of goods…

Q: Question 22 Table 2.1 GDP and its components, 2012 Source: Bureau of Economic Analysis. Table 1.1.5.…

A: Answer to the question is as follows:

Q: Year Stickers Paper plates Price Quantity Price Quantity (Dollars per sticker) (Number of stickers)…

Q: Using the expenditure approach, compute the value of the GDP? Transfer Payments $54 Interest Income…

A: GDP using expenditure approach: Household Consumption + Government Expenditure + Investment + Net…

Q: Spending Category Amou (Billions of dollars) Corporate profits 305 Depreciation 479 Gross private…

A: Disposable income is total personal income minus current income taxes. In national accounts…

Q: Item Personal consumption expenditure Government expenditure on goods and services Net taxes Gross…

A: GDP is the value of the final goods and services that are produced and manufactured in a country.

Q: Calculate the GDP using the Income Approach: Corporate Profits $200 Interests $150 Indirect…

A: GDP using income approach GDP = GNP + indirect business taxes + net income of foreigners +…

Q: GDP is the market value of resources (land, labor, capita, and entrepreneurship) in an economy in a…

A: Gross Domestic Product (GDP) is the calculation of all the goods and services produced and sold…

Q: Explain how gross domestic product is calculated using each of the following: the income approach…

A: Gross Domestic Product ( GDP ) refers to the market value of the final goods and services produced…

Q: Personal consumption expenditures $5,850 Exports 750 Government spending 1,800 Social Security…

A: 1. Gross Domestic Product (GDP)=C+I+G+X-M=5850+1200+1800+(750-1150)=$8450

Q: (i) Explain the difference between Gross Domestic Product (GDP) and Gross National Income. (ii)…

A: i)The entire amount of all the money earned by a nation's population and enterprises is known as…

Q: Say the GDP of a country is $100. To this foreign nationals' contribution is $5. Government gives $2…

A: Personal Income = National Income – Indirect business taxes – Corporate income taxes – Undistributed…

Q: Year 2014 (base) 2015 2016 Product Quantity Price Quantity Price Quantity Price Beer 15 550 575…

A: Nominal gross domestic product is the total value of all products and services produced in an…

Q: Which of the following is NOT included in 2004's GDP? Group of answer choices The profit earned…

A: When talking about the calculation of gross domestic product to determine the national income, it…

Q: Use the table to answer the questions. Assume firms pay all profits out to resource owners, there is…

A: The total financial or market value of all finished merchandise and services made within a country's…

Q: Define the following i. Gross Domestic Product ii. GDP Deflator iii. National Income iv. Autonomous…

A: A charge for products or services made with money or credit is referred to as an expense.

Q: To calculate GDP from the income side, one must add together wages, a) government income, interest,…

A: This can be defined as a concept that shows a continuous fall in the value of the capital or assets…

Q: Describe the relationship among GDP, net domestic product, national income, personal income and…

A: Introduction Gross Domestic Product or GDP shows the Market value of all final goods and services…

Q: The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis.…

A: Gross domestic product (GDP) is a standard measure of the value-added generated by a country's…

Q: Find the value of net domestic product.

A: GDP is used in the measurement of the level of economic activities in a country and is an important…

Q: Which of the following acts are included in official gross domestic product (GDP) calculations? Dan…

A: The gross domestic product is an economic term which sometimes is also called GDP, it can be defined…

Q: Question # 02 Use the information given and show in a table format how value added method is used to…

A: Answer- Need to find - How much coal contributes to the GDP Given in the question- A forester chop…

Q: Find the last year GDP data and the personal consumption expenditure data (in billions) for the US…

A: GDP (Gross Domestic Product) refers to the monetary value of all final products or goods or services…

Question

With reference to the table given above, calculate:

i. Gross Domestic Product at factor cost

ii. Gross National Product at factor cost

iii. National Income

iv. Personal Income

v. Disposable Income

The following are extracts from the national income account of a country.
RM (MILLION)
4,150
900
COMPOSITION
Compensation of employees
Corporate profit
Rent
370
Interest
Proprietor's income
Transfer payment
Tax on companies' profit
Depreciation
Personal income taxes
Employees Provident Fund
Income paid abroad
700
850
500
200
200
650
650
480
Indirect taxes
450
Income received from abroad
600
Undistributed profits
620

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Part i

Part ii

Part iii

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Define Gross Domestic Product and Gross National Product (GNP). Explain the difference between Gross Domestic Product and Gross National Product.
Gross domestic product (GDP) is defined as the: A. value of all final goods and services produced in a country during a period of time B. value of all final goods produced by a country’s resources that are in foreign countries during a period of time. C. value of all final goods that can be produced in a country by utilizing all resources during a period of time. D. value of the income earned by the owners of resources in a country during a period of time E. value of all intermediate goods and services produced in a country during a period of time
Calculate NNP at FC and personal income in the question below. GDP at FC 400 Income from domestic product accruing to private sector 300 Net transfer from government 50 Net indirect taxes 75 NFIA -25 Undistributed profits 20 corporate taxes 15 Consumption of capital 45
Bonus Question: Based on the table below, calculate National income and then GDP using the income approach as per the table below: Description Billions of dollars Compensation of employees 800 Corporate profits 200 Statistical discrepancy 70 Rental Income 400 200 Depreciation 20 Profits of government enterprises 120 Proprietor's income
Problem Using the following national income accounting data, calculate GDP in this country
The table contains price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs. 2016 2016 2017 2017 price quantity price quantity Ford Escape SUV's $24,485 307,069 $24,645 308,296 F-Series Trucks $44,400 820,799 $47,800 896,764 A. Calculate the amount contributed by Ford to U.S. GDP (real and nominal) from the sales of the two models in 2016 and 2017. B. Determine the growth rate of nominal GDP (if Ford were the entire economy). C. Determine the growth rate of real GDP (if Ford were the entire economy).
Gross Domestic Product If nominal GDP in 1975 was $1699.9 billion and the GDP deflator (price index) was 100, what is the value of real GDP in 1975?
Using the following national income accounting data, compute GDP, NDP, and NI. All figures are in billions. Round your answers to one decimal place. category value compensation of employees $ 196.2 U. S. exports of goods and services 19.8 Consumption of fixed capital 11.8 government purchases 59.4 taxes on production and imports 14.4 net private domestic investment 52.1 transfer payments 13.9 U. S. imports of goods and services 16.5 personal taxes Net foreign factor income Personal consumption expenditures Statistical discrepancy 40.5 2.2 219.1 0
The table contains price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs. 2016 2016 2017 2017 price quantity price quantity ford escapes $24,485 307,069 $24,645 308,296 ford trucks $44,400 820,799 $24,645 896,764 a. Calculate the amount contributed by Ford to U.S. GDP (real and nominal) from the sales of the two models in 2016 and 2017. b. Determine the growth rate of nominal GDP (if Ford were the entire economy). c. Determine the growth rate of real GDP (if Ford were the entire economy).
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.
1. Check on the table below the factors that measure national income. Choose only three from the list and write down an example that represents to it. Measures of National Income Example 1. Gross Domestic Product 2. Gross National Product 3. Net National Product 4. NNP at Factor Cost 5. Personal Income 6. Disposable Personal Income
Determine if the following would be included (I) or excluded (E) from the calculation of GDP. (d) An increase in business inventories _______ (e) The income of a tax accountant working for a business _______ (f) Income received from interest on a corporate bond ________ (g) Business expenditures on pollution control equipment ______ (h) Dr. Jung grows tomatoes in his backyard for home consumption _______