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- In the United States, from the most recent fiscal data we reviewed in class, total government spending is roughly 39% of GDP; yet, using the expenditure method for calculating GDP, government expenditures on goods and services were only 17% of GDP. Which of the following most likely explains the difference? Select one: O a. Transfer payments are included in the second figure, but not the first one. O b. Transfer payments are included in the first figure, but not the second one. O c. Military (i.e. defense) spending on goods and services is included in the second figure, but not the first one. O d. Military (i.e. defense) spending on goods and services is included in the first figure, but not the second one.12. The current tax system in United States collects more than 50% of government income tax revenue from the top 25% of earners. This is what type of statement? O Positive statement O Normative statement O Relative statement O Productive statementUsing the data in the table, gross domestic product equals O A. $2,150. B. $1,920. O C. $2,400. O D. $1,940. Corporate profits Net interest Indirect taxes less subsidies Depreciation Compensation of employees Proprietor's income Rental income Personal consumption expenditures Government expenditure on goods and services Net exports of goods and services $200 150 230 250 1,350 150 70 1,400 500 40
- 4. Deriving net exports By definition, net exports from Japan are equal to exports from Japan minus imports into Japan. In a hypotheticall two-country world, imports into Japan are equal to exports from the United States. So the value for net exports from Japan is equal to exports from Japani minus exports from the United States, Graphically, at each exchange rate, the value for net exports is the horizontal distance from U.S. exports to Japanese exports. Use the graph input tool to answer the following questions. You will not be graded on any changes you make to this graph. (Note: To avoid dealing with decimal places, this calculator reports the price of yen in terms of dollars per 1,000 yen. That is, the price on the vertical axis is the dollar price of a 1,000-yen note instead of a single yen. As you have already seen, a price of 8 dollars per 1,000 yen is the same as 125 yen per dollar. Once you enter a value in a white field, the graph and any corresponding amounts in each grey…AS2 AS₁ AS₁ AS2 哎哎 AD AD 0 0 Real domestic output Real domestic output (A) (B) AS IX IX Price level 0 Real domestic output (C) Multiple Choice During the COVID-19 pandemic Canadian exports to our major trading partner, the U.S.A. plummeted. Which of the above diagrams best portrays the effects of sthat on the Canadian economy? O O A Price level B Real domestic output (D) < Prev *** 56 of 65 Next BRANDFATSuppose that the U.S. government decides to charge cola producers a tax. Before the tax, 30 billion cases of cola were sold every year at a price of $4 per case. After the tax, 23 billion cases of cola are sold every year; consumers pay $5 per case, and producers receive $2 per case (after paying the tax). The amount of the tax on a case of cola is $_________ per case. Of this amount, the burden that falls on consumers is $_________ per case, and the burden that falls on producers is $__________ per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers.
- Countries that engage in international trade experience benefits and problems during the exchange. For a country like Oman whose exports of oil always exceed the amount of imports, what is most likely to happen? O a. Low gross domestic product O b. Net exports will be negative O c. Net exports will be positive O d. Lower aggregate demandRefer to the information provided in the table at right to answer the question that follows. The value for personal income in billions of dollars is O A. 890. OB. 870, O c. 960. OD. 950. Depreciation Receipts of factor income from rest of world Government purchases Imports Payments of factor income to rest of world Net private domestic investment Personal income taxes Personal consumption expenditures Dividends Exports Amount of national income not going to households $Billions 40 30 100 50 50 200 120 600 20 60 20Expenditure on consumption goods and services flows from through the markets. O A. households and governments to firms; goods O B. governments to households; goods O C. households and governments to firms, factor O D. households to firms; goods O E. firms to households, factor
- QUESTION 16 Net national product equals A) gross national product minus statistical discrepancy. B) gross national product minus depreciation. C) national income minus taxes on production and imports. D) national income plus depreciation. O a b O d QUESTION 17 National income equals A) net national product minus statistical discrepancy. B) gross national product minus depreciation. C) GNP minus depreciation and taxes on production and imports. D) net national product minus taxes on production and imports and employer contributions to Social Security. O a O b O c O dConsider a country that runs a budget deficit of $7 million and a trade deficit of $8 million. If private savings equals $2 million, which of the following is correct? The supply of financial capital is $15 million, so private investment equals $13 million. O The supply of financial capital is $15 million, so private investment equals $15 million. O The supply of financial capital is $9 million, so private investment equals $1 million. O The supply of financial capital is $10 million, so private investment equals $3 million.5. You are given the following information about an economy: $millions GDP at Market Prices 1,,669.4 Imports 290.5 Gross Domestic Capital Formation 48.7 Income accruing to the Public Sector 39.0 Retained Business Earnings 75.9 Exports 273.4 Subsidies 16.8 Factor Payments from Abroad 10.0…