Question

EET 301: MACROECONOMIC THEORY 1. The following information was extracted from KNBS national account. ITEMS                        &nbs

EET 301: MACROECONOMIC THEORY
1. The following information was extracted from KNBS national account.

ITEMS                                                         FIGURES (KSH)
GNP                                                                            1890                                             
Capital consumption allowance                                197
Indirect business taxes                                              165
Business transfer payment                                           9
Net subsidies                                                                  2
Corporate profit                                                          140
Dividends                                                                      41
Corporate profit tax                                                      69
Net Interest                                                                  101
Contribution for social insurance                              139
Government transfer                                                   198
Personal Interest Income                                            148
Net business Savings (Retained earnings)                 30
Interest paid by government to people and business 42
Interest received by government                                   25
Interest paid by consumers to business                      30
Personal tax payment                                                   228
Personal savings                                                             67
Transfer to foreigners                                                      1
Net National Product                                                  1693

Required to compute
a) National Income
b) Personal Income
c) Disposable personal Income
d) Consumption Expenditure

      

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) National income= NNP - Indirect taxes+ subsidies =1693-165+2=1530

b) Personal income= National Income - Corporate tax - Retained earnings + Business transfer payments + Government transfer payments = 1530 -69 - 30 + 9 + 198 = 1638

c) Personal disposable income = Personal income - Personal taxes = 1638-228=1410

d) Consumption expenditure = Personal disposable income - Personal savings = 1410-67=1343.

Note: While calculating Consumption expenditure it is assumed that the government consumption expenditures are distributed as income of the individuals and is included in the personal income.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are given the following data: GDP                                    &
You are given the following data: GDP                                                                2300 Depreciation                                                    250 Before tax corporate profit                              500 Social security contribution                             350 Transfers to households and firms                  500 Net interest to foreigners                                 100 Proprietary income                                              35 Net corporate saving                                       300 Indirect taxes                                                   500 Subsidies to enterprises                                   200 Fines and fees                                                     50 Net remittances to the rest of the world           250 Corporate taxes                                                   50 Consolidated government deficit                         50 Personal taxes                                                 750 Household savings                                          100 Investment expenditures                                  600 Compute: NDP, national...
We have the following information for an economy. All data are in billion dollars. Category Value...
We have the following information for an economy. All data are in billion dollars. Category Value Compensation of Employees 6,500.00 Personal Consumption Expenditure 9,180.00 Indirect Taxes minus Subsidies 750.00 Rental Income 600.00 Net Business Transfer Payments 0.00 Corporate Profits 1,100.00 Net Exports −450.00 ​Proprietors' Income 780.00 Surplus of Government Enterprises 0.00 Personal Saving 510.00 Net Interest 470.00 Calculate National Income for this economy. National Income​ = ​$nothing billion. ​(Enter your response as an​ integer.)
The table below shows the data for the country of Magnolia. Complete the national income accounting...
The table below shows the data for the country of Magnolia. Complete the national income accounting framework by filling in the missing data. Expenditures Incomes Consumption Compensation of employees 820 Gross investment 360 Gross operating surplus 360 Government spending 390 Gross mixed income Net exports -30 Taxes less subsidies on production 70 Indirect taxes (net of subsidies) 150 Gross domestic product at market prices Gross domestic income at market prices Less depreciation Less depreciation 110 Less indirect taxes (net of...
Exhibit:    Totals Recorded for the United States    (billions of dollars)* Durable goods consumption $ 497...
Exhibit:    Totals Recorded for the United States    (billions of dollars)* Durable goods consumption $ 497 Nondurable goods consumption 1,301 Services consumption 2,342 Business fixed investment 566 Residential fixed investment 224 Inventory investment 7 Federal government purchases 449 State and local government purchases 683 Exports 640 Imports 670 Excess of GNP over GDP 7 Depreciation 658 Indirect business taxes 551 Corporate profits (includes wage accruals less disbursements) 387 Social insurance contributions 556 Net interest 442 Dividends (includes business transfer payments)...
Graceland’s 2018 National Accounts Interest and investment income 80 Dividends 90 Imports 640 Gross investment 340...
Graceland’s 2018 National Accounts Interest and investment income 80 Dividends 90 Imports 640 Gross investment 340 Net investments from non-residents 160 Transfer payments 140 Government purchases 440 Personal taxes 320 Corporate income taxes 70 Indirect taxes less subsidies 100 Undistributed corporate profits 120 Net income of farm and unincorporated business 240 Wages, salaries, and supplementary labour income 1,000 Personal consumption expenditures 1,040 Capital consumption allowance 180 Exports 700 Profits of corporations and government enterprises before taxes 240 1. In 2018,...
Using the following national income accounting data, compute (a) Gross Domestic Product in Income and expenditure...
Using the following national income accounting data, compute (a) Gross Domestic Product in Income and expenditure approach (b) Net Domestic Product, (c) National Income, (d) Personal Income and (e) Disposable Income Personal consumption expenditures $11,736 Compensation of employees $9,805 Gross private domestic investment $2,745 Rents $77 Government purchases $2,745 Interest $724 Net exports $810 Proprietors’ income $1,124 Corporate profits $2,048 Corporate income taxes $499 Taxes on production and imports $1,234 Net foreign factor income $111 Statistical discrepancy $45 Consumption of...
The following table contains some information from the national income and product accounts of a small...
The following table contains some information from the national income and product accounts of a small country. All data are in billion dollars. Category Value Government Consumption and Gross Investment 300.00 National Income 1,230 Depreciation 35.00 Exports 150.00 Compensation of Employees 800.00 Receipts of Factor Income from the Rest of the World 43.00 Net Investment 140.00 Inventory Adjustment 0.00 Imports 160.00 Payments of Factor Income to the Rest of the World 40.00 Corporate Profits 220.00 Statistical Discrepancy 10.00 For this​...
Use the information in the following table to answer questions 1 through 4: Exports of goods...
Use the information in the following table to answer questions 1 through 4: Exports of goods & services: $1000 Imports of goods & services: $1200 Net change in assets owned abroad: $100 Net change in foreign owned assets at home: $360 Unilateral transfers received: $130 Unilateral transfers paid: $200 Investment income paid to foreigners: $380 Investment income received from foreigners: $400 Balance on the capital account: $0 Statistical Discrepancies: $0 1. The balance on the current account is _________. A)...
1. Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in...
1. Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in billions of dollars. Wages $ 26,500 Consumption Expenditures $36,000 Government Expenditures $18,500 Imports $20,330 Exports $18,580 Property Taxes $16,000 Sales Taxes $9,715 Retained earnings $1,310 Personal Income Taxes $2,200 Private Domestic Investment Expenditures $15,650 Interest Income $1,940 Pay Roll taxes $1,300 Transfer Payments $880 Depreciation $1,300 Net Income Made Abroad by Americans $160 Indirect Business taxes $2,520 Corporate Income Taxes $320
Table 23-1 The following table contains data for Mindalion for the year 2019. ​ GDP $200...
Table 23-1 The following table contains data for Mindalion for the year 2019. ​ GDP $200 Income earned by citizens abroad $9 Income foreigners earn here $7 Losses from depreciation $4 Indirect business taxes $10 Statistical discrepancy $0 Retained earnings $8 Corporate income taxes $12 Social insurance contributions $30 Interest paid to households by government $8 Transfer payments to households from government $55 Personal taxes $60 Nontax payments to government $11 Refer to Table 23-1. Disposable personal income for Mindalion...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT