26. Consider the following table:Income ApproachLaborInterestRentProfitDepreciationTaxesTotalCar6,000.003,000.008,500.004,000.0026,000.00Expenditure ApproachFurniture600.00400.00150.002,100.00TotalMachine Value4,000.00350.00225.00200.006,100.006,550.003,900.009,325.004,325.00Show by filling up the 10 blank boxes that both Expenditure Approach andIncome Approach to national income accounting lead to the same numerical resultsof national output.

GDP stands for Gross Domestic Product, which is a measure of the total value of goods and services…

26. Consider the following table: Income Approach Labor Interest Rent Profit Depreciation Taxes Total Car 6,000.00 3,000.00 8,500.00 4,000.00 Expenditure Approach 26,000.00 Furniture 600.00 400.00 150.00 Total Machine Value 4,000.00 6,100.00 6,550.00 3,900.00 9,325.00 350.00 225.00 200.00 4,325.00 2,100.00 Show by filling up the 10 blank boxes that both Expenditure Approach and Income Approach to national income accounting lead to the same numerical results of national output.

26. Consider the following table: Income Approach Labor Interest Rent Profit Depreciation Taxes Total Car 6,000.00 3,000.00 8,500.00 4,000.00 Expenditure Approach 26,000.00 Furniture 600.00 400.00 150.00 Total Machine Value 4,000.00 6,100.00 6,550.00 3,900.00 9,325.00 350.00 225.00 200.00 4,325.00 2,100.00 Show by filling up the 10 blank boxes that both Expenditure Approach and Income Approach to national income accounting lead to the same numerical results of national output.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 11RQ: Why might private markets tend to provide too few incentives for the development of new technology?

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