EBK PRINCIPLES OF ECONOMICS
7th Edition
ISBN: 8220102958395
Author: Mankiw
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 23, Problem 2PA
To determine
Why transfer payments are not included in the GDP .
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The government purchases component of GDP doesnot include spending on transfer payments such asSocial Security. Thinking about the definition of GDP,explain why transfer payments are excluded
What is the effect that changes in business taxes, personal income, and transfer payments have on a country’s gross domestic product (GDP).
Use the information below
Consumer spending = $200 million
Capital Consumption Allowance = $80 million
Investment spending = $55 million
Total Earnings of Citizens from abroad = $120 million
Total Earnings of non-citizens within the country = $50 million
State and local government purchases = $120 million
Federal government purchases = $80 million
Government purchases of housing units for the victims of typhoon = $200 millions
Imports = $50 million
Exports = $45 million
Income taxes = $100 million
Calculate for GDP
Calculate for GNP
Calculate for NNP
Chapter 23 Solutions
EBK PRINCIPLES OF ECONOMICS
Ch. 23.1 - Prob. 1QQCh. 23.2 - Prob. 2QQCh. 23.3 - Prob. 3QQCh. 23.4 - Prob. 4QQCh. 23.5 - Prob. 5QQCh. 23 - Prob. 1QRCh. 23 - Prob. 2QRCh. 23 - Prob. 3QRCh. 23 - Prob. 4QRCh. 23 - Prob. 5QR
Ch. 23 - Prob. 6QRCh. 23 - Prob. 7QRCh. 23 - Prob. 8QRCh. 23 - Prob. 1QCMCCh. 23 - Prob. 2QCMCCh. 23 - Prob. 3QCMCCh. 23 - Prob. 4QCMCCh. 23 - Prob. 5QCMCCh. 23 - Prob. 6QCMCCh. 23 - Prob. 1PACh. 23 - Prob. 2PACh. 23 - Prob. 3PACh. 23 - Prob. 4PACh. 23 - Prob. 5PACh. 23 - Prob. 6PACh. 23 - Prob. 8PACh. 23 - Prob. 9PACh. 23 - Prob. 10PACh. 23 - Prob. 11PA
Knowledge Booster
Similar questions
- What are government transfer payments? Are they included as part of the government spending component of GDP?arrow_forwardWhat is the biggest spending component of GDP?arrow_forwardPlease describe the effect that changes in business taxes, personal income, and transfer payments have on a country’s gross domestic product (GDP).arrow_forward
- what is the difference between Gross Domestic Product and Gross National Product? Would the difference be large or small for developed country? Defend your stand and give examplesarrow_forwardThe Equivalence of Expenditure and Income (in Billions of Dollars) Expenditure C: Consumer goods and services I: Investment in plants, equipment, and inventory G: Government goods and services X: Exports M: Imports GDP: Total value of output b. Gross private investment % % c. Total government purchases % d. Exports e. Imports % $14,561 Instructions: Enter your responses as a percentage rounded to one decimal place. Calculate the following as a percentage of GDP for 2019: a. Personal consumption expenditures % 3,744 3,754 2,504 (3,136) $21,427 Wages and salaries Corporate profits Proprietors' income Income Rents Interest Taxes on output and imports Depreciation Statistical discrepancy Total value of income $11,434 2,075 1,658 778 645 1,494 3,463 (120) $21,427arrow_forwardBriefly describe the demirits of state enterprise in the field of national income?arrow_forward
- Just do as many as you able to do.arrow_forwardList and describe the components of Gross Domestic Product on the demand side. Provide an example of each component. Also, be sure to account for the relative size of each component within the total GDP.arrow_forwardWhat are the components of Gross Domestic Product (GDP)? Give the one-letter symbol and what it represents. AND what is the definition of GDP?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co