Question

a. In the fictional country of Symposia, we have the following information for the year 2017: *Consumers bought $2 billion dollars worth of new goods and services, 15% of which were bought by foreigners residing in Symposia. *As well, $200 million worth of new housing stock was sold. *Company profit was $400 million in 2017 *Businesses bought $100 million dollars worth of bonds in 2017. *The government of Symposia bought $150 million worth of computing equipment for government-run schools in 2017. *Citizens of Symposia living overseas bought $25 million worth of Symposia goods. (i) Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Symposia’s consumption in 2017 (ii) Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Symposia’s investment in 2017 (iii) What was Symposia’s GDP in 2017? Explain your answer b. The standard of living in China is lower than the standard of living in Finland even though the size of China’s real GDP in 2018 (using 2010 constant prices) was USD10,800,568.39 million as opposed to Finland’s USD364,840.48 million (figures from the World Development Index Database). Do you agree or disagree with this statement? Justify your answer.

PLEASE i need help with this question or else i will fail.Someone Please HELp

Answer 1

A.

i) Symposia"a consumption in 2017 would be 200 millions. It si because other eliments like computer purchase is an investment. Bonds are paper claims.and purchases by nonresidents are out side the domestic teritory.

ii) Symposia's investment in 2017 would be 350 millondollers . It is the addition of 200 millions and 150 millions.which is computer purchases.

iii) GDP is basically the addition of consumption plus investment plus government plus net exports so it would be 575 millon dollers.

BThe standard of living is not only measures through the country's GDP but also other factors are included like how GDp is distributed in the society? What kind of goods are produced in the country? LIkealhohol is produced or war goods are produced it dost not lead to increase in standard of lliving of the country.Happiness is also an important factor. Finland;s people are more happier than china;s people . Pollution is also a factor which reduces standard of living. So quantity of GDP does not matter. Quality of life is an important factor.