a) There are two methods of calculating GDP: income approach and expenditure approach. According to your opinion which method is better suited for calculating the GDP of Bangladesh? Briefly explain the reasons behind your answer. b) When calculating the GDP using the expenditure method why do we subtract “imports”? c) When calculating the GDP of Bangladesh using the income approach why do we add the “earnings of foreigners living in Bangladesh”? d) When calculating the GDP of Bangladesh using the income approach why do we subtract “earnings by Bangladeshis living in foreign countries”?

a) There are two methods of calculating GDP: income approach and expenditure approach. According to your opinion which method is better suited for calculating the GDP of Bangladesh? Briefly explain the reasons behind your answer. b) When calculating the GDP using the expenditure method why do we subtract “imports”? c) When calculating the GDP of Bangladesh using the income approach why do we add the “earnings of foreigners living in Bangladesh”? d) When calculating the GDP of Bangladesh using the income approach why do we subtract “earnings by Bangladeshis living in foreign countries”?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 9SQP

See similar textbooks

Similar questions

Consumption $400 Imports $ 10 Net investment $ 20 Government purchases $ 100 Exports $ 20 Capital consumption allowance $ 20 Statistical discrepancy $ 6 Receipts of factor income from the rest of the world $ 10 Payments of the factor income to the rest of the world $ 13 What is the GDP for this economy? What is the GNP for this economy? What is the NNP for this economy? What is the national income for this economy? What is the gross investment in for this economy?
Use the data below to calculate GDP using the expenditure approach. (I intentionally left out some of the income categories so that you must use the expenditure approach). Then calculate NDP, NI, PI, and DI. (All figures are in billions of dollars): Consumption of Fixed Capital (Depreciation) Corporate Income Taxes Dividends Exports Government Purchases Imports Indirect Business Taxes Interest Net foreign factor income earned in the U.S. Gross Private Domestic Investment Personal Consumption Expenditure Personal Taxes Proprietor's Income Rents Social Security Contributions Transfer Payments Undistributed Corporate Profits 543.4 124.3 103.2 483.8 1071.6 597.1 318.4 426.8 39.4 897.4 3062.6 566.6 354.2 47.1 379.5 475.8 126.7 GDP = $ NDP = $ NI-S PI=S DI = $ Billion Billion Billion Billion Billion
Use the following table to answer the question below for an economy that has no government, no international trade or any association with other countries: Consumption (billions) Level of Output (billions) $240 $260 $280 $300 $320 $340 $360 $340 $380 $356 $400 $372 If gross investment is $4 billion, the equilibrium level of GDP (output) will be: a) $340 b) $280 Oc) $260 $244 $260 $276 $292 $308 $324 d) $360
Consider the following table showing the breakdown of GDP (in billions) for China. GDP Category Amount (in billions) Wages and Salaries 1000 Consumption 1700 Investment 700 Depreciation 50 Government Expenditure 100 Taxes 300 Exports 50 Imports 40 Income receipts from rest of the world 10 Income payment to rest of the world 50 1. What are net exports for China? 2. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions) what is the growth rate of GDP in Japan?
As an economist with the World Bank you have been asked to measure the Gross Domestic Product for the US for 2019. You are told that the private consumption, gross domestic investment, government purchases and exports all add up to $ 24 trillion. You later learn that imports to the US in 2019 were $4 trillion. To get GDP, you should A. Ignore the $ 4 trillion because exports have already been included in the $ 24 trillion B. Add $ 4 trillion to $24 trillion because imports are used as inputs in the production of other goods in the US C. None of the above D. Subtract $4 trillion from $24 trillion because imports are not part of US domestic output
Suppose you are given the following information about some hypothetical economy and its national income accounts. Use this information to answer the questions that follow. (Amounts are in millions of Kshs.) Indirect Business Taxes 459.50 Corporate profits 604.45 Corporate profits taxes 234.70 Retained earnings 165.40 Proprietors' income 519.20 Rental Income 31.05 Net Interest 585.55 Exports 842.85 Imports 1190.20 Income Receipts from rest of world 427.8 Income Payments to rest of world 377.45 Net National Product 6190.4 Government expenditures for Goods and Services 1358.25 Personal current Transfer receipts 871.15 Social Security Taxes (employee & employer) 490.75 Personal Consumption expenditures 4892.85 Gross Private Domestic Investment 1082.45 Disposable personal income 5128.75 a. Find GDP and GNP b. Find depreciation (capital consumption allowance) c. Find National Income
A country has just one resource - labor - that it can use to produce two goods, books and clothing. At first the country has 10 million workers, and each worker can produce either 2 books or 5 units of clothing per day. Suppose the country wants to produce 8 million books. Suppose the price of a book is $10, and the price of a unit of clothing is $20. Using this information and your answer from the last question, calculate the country's GDP (measured in dollars per day). Enter your answer as a number in the space below. (For example, if your answer is $3.75 million, enter it as 3750000 in the space below.)
According to the figure showing 2020 GDP for selected countries, how much larger (in percentage terms) is America's GDP than: 21.43 14.34 5.08 United China Japan States b. Russia? % larger Copyright © McGraw Hill LLC. Permission required for reproduction or display. GROSS DOMESTIC PRODUCT (in U.S. $ trillion) % larger 3.86 2.87 2.83 1.70 1.27 Germany India Great Britain Russia Mexico Source: Gross Domestic Product 2020. The World Bank Group, March 2021 0.53 Sweden Instructions: Round your responses to the nearest whole number. a. Germany? 0.21 Greece 0.01 Haiti
When a U.S. consumer buys Canadian maple syrup at the grocery store, this purchase is:A) an importB) an exportC) gross domestic productD) a transfer payment. Below is economic data for Germany for 2016 (measured in billions of current euros). What was total spending? Consumption 1,649.79 Investment 636.42 Government spending 620.01 Exports 1,442.41 Imports 1,211.64 A) 2,675B) 4,348C) 2,906D) 3,137 Please ans both questions and you will get thumbs up.
Why do we subtract import spending from total expenditures while calculating the GDP?
How would each of the following transactions affect the GDP of the United States (Increase, decrease, or does not change)? The U.S. government pays $1 billion in salaries for government workers. GDP will... The U.S. government pays $1 billion to Social Security recipients. GDP will... The U.S. government pays a U.S. firm $1 billion for newly produced airplane parts. GDP will... The U.S. government pays $1 billion in interest to holders of U.S. government bonds. GDP will...
The calculation of a country's GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted). Explain how each of the following items are treated in the computation of GDP for 2020. Interest on treasury issued by the Bank of Ghana Social security payments paid to retired employees in Ghana You assisted your parents to weed your family backyard The property income received by a hauler The money received by Martha when she sold her mother’s old blender The monthly allowance a student receives from scholarship secretariat The money received by Matthew Amoako when he bought Afia’s laptop The value of working in progress is $2 billion Asamoah withdraw GHC 5m from his bank accounts to purchase of 1000 shares of GCB Bank stock To protect his employees from the risk of contracting the COVID 19, the…