Please select the GDP calculation method that best fits each of the given definitions. Method 1: This method takes into account payments received by the various factors of production used to produce final goods and services in the economy. Method 2: It is the sum of the market values of its products or services minus the cost of the inputs used to make the products or services. Method 3: This method is the market value of all the output produced within a nation's domestic boundaries within a given period.

Please select the GDP calculation method that best fits each of the given definitions. Method 1: This method takes into account payments received by the various factors of production used to produce final goods and services in the economy. Method 2: It is the sum of the market values of its products or services minus the cost of the inputs used to make the products or services. Method 3: This method is the market value of all the output produced within a nation's domestic boundaries within a given period.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter15: Gross Domestic Product

Section: Chapter Questions

Problem 1SQ

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Use the following composition of expenditure for the economy of a country named the Republic of Tapuwa, for the year ended 2019 to answer the questions below:COMPONENTR millionsConsumption expenditure (C) Investment (I)Government spending (G) Exports (X)Imports (Z)DepreciationForeign payment to the rest of the worldForeign payment from the rest of the worldShow all calculations and formulae.9 000 6 500 7 000 1 800 2 400 700 300250 Compute the value for the country’s GDP (Gross Domestic Product) at market price. Determine the value of the country’s NNI (Net National Income) at market price.If it is predicted that the GDP will increase to 22 000 in 2020, calculate the growth rate between 2019 and 2020.Q.7.2.5The measure of GDP for economic growth is not always perfect. Describe any two problems that are associated with GDP as a measure of economic growth.
National income accounting for a certain country in the year for 2020 is given in Table 2. Based on the table, answer the following questions. Amount in $ (million) 180 8,120 3,800 1,320 4,230 12,000 10,120 12,100 8,000 3,120 3,240 Items Net factor income Consumption expenditure Public investments Import Export Government expenditure Wages Interest, rent and profit Indirect taxes Subsidies Depreciation a) By using expenditure approach, calculate Gross Domestic Product (GDP) at market price. b) By using income approach, calculate Gross Domestic Product 9GDP) at market price. c) Based on your understanding on Gross Domestic Product (GDP), explain why do you think that GDP Ís important, and what is the limitation of GDP?
GDP is often calculated using the expenditures approach, where you add up all spending in four categories: Consumption (C) + Business Investment (I) + Government Spending (G) + Net Exports (Xn). Based on the data you viewed, you can assume that due to the COVID-19 pandemic, the US GDP took the largest hit from which of the expenditure categories?  -Consumption   -Business Investment  Government -Spending   -Net Exports
Determine the Gross Domestic Product GDP using the two approaches: Income Approach ( consider the following hypothetical data ) Billion of Pesos Salaries Php 200 Wages 50 Rentals 80 Interests 30 Profit by businessmen 100 Earnings of entrepreneur 60 Expenditure Approach ( consider the following data. ) Billion of Pesos Personal consumption expenditures Php 100 Personal taxes 40 Exports 50 Depreciation 10 Government purchases 60 Gross private domestic investment 40 Imports 45 Government transfer payments 20 Question: 1. What is the amount of GDP obtained? What is the value of net exports? 2. What is the value of net investment? What is the value of net domestic product?
The data below shows the components of country A’s national income in 2015. S/NO ITEMS IN MILLION GHȼ I Net Domestic Capital Formation 500 II Compensation of Employees 1850 III Depreciation 100 IV Government Final Consumption Expenditure 1100 V Private Final Consumption Expenditure 2600 VI Rent 500 VII Dividend 200 VIII Interest 650 IX Net Export -100 X Profit 1100 XI Net Factor Income From Abroad -50 XII Indirect Tax 250 XIII Subsidies 200 Using the expenditure and the income based approaches, calculate Gross domestic product at market price Gross national product at market price Gross national product and Net national product at factor cost
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The link between gross domestic product (GDP) and national income (NI) isSelect one from the following options. A)indirect business taxes, net foreign factor income, savings B)indirect business taxes, profit, investment C)indirect business taxes, net foreign factor income, consumption of fixed capital D)indirect business taxes, net foreign factor income, investment
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Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions. Category Billions Compensation of employees $226.2 U.S. exports of goods and services 19.8 Consumption of fixed capital 11.8 Government purchases 59.4 Taxes on production and imports 14.4 Net private domestic investment 52.1 Transfer payments 13.9 U.S. imports of goods and services 16.5 Personal taxes 40.5 Net foreign factor income 2.2 Personal consumption expenditures 249.1 Statistical discrepancy 0.0 Instructions: Round your answers to 1 decimal place. a. GDP = $ billion b. NDP = $ billion c. NI= $ billion
The following data represents the national income account for a country for 2017. All figures are in RM million Compensation Of Employee 588 888 Household consumption expenditure 258431 Tax On Employment 70 667 Government Finał Purchases 85 773 Transfer Payment 53 274 Domestic Private Gross Investment 71 394 Corporate Profits 177 821 Dividend Payment 9 247 Corporate Profit Taxes 85 354 Indirect Taxes 67 980 Government Subsidy 5 762 Exports 107 506 imports 112 030 Income Received From Abroad 21 030 Income…
The following data represents the national income account for a country for 2017. All figures are in RM million Compensation Of Employee 588 888 Household consumption expenditure 258431 Tax On Employment 70 667 Government Finał Purchases 85 773 Transfer Payment 53 274 Domestic Private Gross Investment 71 394 Corporate Profits 177 821 Dividend Payment 9 247 Corporate Profit Taxes 85 354 Indirect Taxes 67 980 Government Subsidy 5 762 Exports 107 506 imports 112 030 Income Received From Abroad 21 030 Income…
GDP Table Transfer payments Government purchases 32 160 Personal taxes 76 Corporate Income taxes Taxes on production and imports 56 30 Social secunity contributions 16 Undistributed corporate profits Proprietors income 38 50 Compensation of employees Personal consumption expenditures Consumption of fived capital 516 644 Rents 66 Exports 28 Corporate profits 140 nterest 64 Dividends 46 Imports Gross private domestic investment Net foreign factor income eamed Statistical discrepancy 34 126 20 70 Refer to the above data. PI is: Oa. $702. Ob. Sy28. Oe S758. od. Sy26.