Question

National Income Accounts (dollar figures are in billions) Expenditures for consumer goods and services $4,565 Exports...

National Income Accounts (dollar figures are in billions)

Expenditures for consumer goods and services $4,565
Exports $740
Government purchases of goods and services $1,465
Social Security taxes $510
Net investment $225
Indirect business taxes $520
Imports $825
Gross investment $865
Corporate income taxes $185
Personal income taxes $750
Corporate retained earnings $45
Net foreign factor income $20
Government transfer payments to households $690
Net interest payments to households $0

On the basis of Table 5.1, gross domestic product is

Multiple Choice

  • $7,635 billion.

  • $6,810 billion.

  • $6,980 billion.

  • $7,720 billion.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

We can find GDP by two method

By Expenditure method and by Income approach method.

We use in expenditure method.

In this

C mean consumtion of good and services. (4565)

I mean gross domestic private investment. (865)

G mean government spendings like purchases. (1465)

X mean export. (825)

M mean import. (740)

we see for the GDP calculation we have to calculate all gross payment and expenditure.

So we apply this formula and find Gross Dometic product.

So our GDP is $6810 Billion's. option 2 is right.

Net investment mean after the depreciation from gross investment.

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
The table below shows the national accounts for a hypothetical economy, Macronia. ($ billions) Government purchases...
The table below shows the national accounts for a hypothetical economy, Macronia. ($ billions) Government purchases 17 Proprietors' income and rents 11 Exports 5 Indirect taxes 9 Gross investment 13 Wages and salaries 29 Corporate income 21 Imports 5 Net investment 9 Personal consumption 30 Statistical discrepancy ? a. The expenditure-based estimate of Macronia's GDP is $  billion. b. The income-based estimate of Macronia's GDP is $  billion. c. The value of the statistical discrepancy which is added to the lower estimate...
The table below shows the national income accounts for a hypothetical economy, Metrica. ($ billions) Corporate...
The table below shows the national income accounts for a hypothetical economy, Metrica. ($ billions) Corporate income 103 Exports 73 Wages and salaries 562 Net international income to the rest of the world 8 Gross investment 157 Government purchases 184 Indirect taxes 75 Personal consumption 490 Imports 27 Depreciation 79 Proprietors' incomes and rents 56 Statistical discrepancy ? a. The income-based estimate of Metrica's GDP is $  billion. b. The expenditure-based estimate of Metrica's GDP is $  billion. c. The value of...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods Exports                                    +80 Goods Imports                                    -60 Service Exports                                  +30 Service Imports                                  -20 Net Investment Income                      -10 Net Transfers                                      +20 Balance on Capital Account               0 Foreign Purchases of Domestic Assets          +40 Domestic Purchases of Foreign Assets          -80 Calculate the following: a. Balance on goods. b. Balance on goods and services. c. Balance on current account. d. Balance on capital and financial account. e. Suppose that this...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods Exports                                                +80 Goods Imports                                    -60 Service Exports                                  +30 Service Imports                                   -20 Net Investment Income                      -10 Net Transfers                                      +20 Balance on Capital Account              0 Foreign Purchases of Domestic Assets           +40 Domestic Purchases of Foreign Assets           -80 Calculate the following: a. Balance on goods. b. Balance on goods and services. c. Balance on current account. d. Balance on capital and financial account. e. Suppose that this...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods...
Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods Exports                                    +80 Goods Imports                                    -60 Service Exports                                   +30 Service Imports                                   -20 Net Investment Income                       -10 Net Transfers                                       +20 Balance on Capital Account               0 Foreign Purchases of Domestic Assets          +40 Domestic Purchases of Foreign Assets          -80 Calculate the following: a. Balance on goods. b. Balance on goods and services. c. Balance on current account. d. Balance on capital and financial account. e. Suppose that this...
answer the question on the basis of the following national income data. all figures are in...
answer the question on the basis of the following national income data. all figures are in billions of dollars. Personal taxes $23 net private domestic investment 33 net exports 6 national income 278 u.s. exports 20 gross private domestic investment 56 disposable income 220 taxes on production and imports 32 undistributed corporate profits 15 proprietors' income 45 net foreign factors income 0 statistical discrepancy 0 refer to the data. personal consumption expenditures:
Below is a list of domestic output and national income figures for a certain year. All...
Below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The results you obtain with the different methods should be the same. Category Value Category Value Personal Consumption Expenditures $295 Net Exports 11 Net Foreign Factor Income 4 Dividends 16 Transfer Payments 12 Compensation of Employees 273 Rents 14...
Data $Billions Government purchases of goods 1,000 Payments of factor income to the rest of the...
Data $Billions Government purchases of goods 1,000 Payments of factor income to the rest of the world 60 Imports 250 Change in business inventories 40 Durable goods 250 Nondurable goods 650 Exports 150 Residential investment 150 Local government purchases 350 Depreciation 60 Receipts of factor income to the rest of the world 80 Indirect taxes 70 Subsidies 30 Determine: By showing calculation i)             The value of NDP ii)               The value of GNP iii)             The value of NNP iv)           The value of National Income              
The list below provides some national income figures for country AAA.  All figures are in million dollars:...
The list below provides some national income figures for country AAA.  All figures are in million dollars: Government purchases of goods and services                                        $1,000 Indirect taxes                                                                                        175 Personal income taxes                                                                          200 Wages and employee compensation (including personal income taxes)    5,000 subsidies                                                                                              30 Consumption expenditure                                                                      3900 Exports                                                                                                 350 Capital consumption allowance (depreciation)                                         150 Imports                                                                                                 390 Investment                                                                                            950 Net interest income                                                                               200 Business profits before taxes                                                                 465 Personal saving                                                                                    1,100                             Calculate the value of GDP using the expenditure approach Calculate the value of GDP using the income approach Calculate the value of net domestic income at...
Expenditure Items $Billions Depreciation Receipts of factor income from the rest of the world Exports State...
Expenditure Items $Billions Depreciation Receipts of factor income from the rest of the world Exports State & local purchases of goods Payments of factor income to the rest of the world Net private domestic investment Imports Personal taxes Personal consumption expenditure Dividends Change in business inventories 30 20 500 250 40 150 40 90 500 10 30 Determine: i)                The value of Gross Private Domestic Investment                                         ii)              The value of GDP using the Expenditure approach iii)             The value of net exports...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT