Bureau of Economic Analysis in the USA is responsible for construction and maintenance of national income and product accounts (NIPA). Measurement began in the 1930s due to frustration of Roosevelt and Hoover trying to design policies to combat the Great Depression. Simon Kuznets (Nobel laureate) was commissioned to develop initial methodology and estimates. In 1947, the process became much more consistent. Methodologies have frequently been changed (improved?) as a result of advances in economics, accounting, and data collection. Past data are then revised to reflect new definitions. On the following information, calculate GNP at factor cost. Whether GNPFC derive from income method equivalent to expenditure method? S.No. Items Rs. (In Crores) 1 Private final consumption expenditure 1000 2 Net domestic capital formation (Investment) 200 3 Profit 400 4 Compensation of employers (Wages and salaries) 800 5 Rent 250 6 Government final consumption expenditure 500 7 Consumption of fixed capital (Depreciation) 60 8 Interest 150 9 Net factor income from abroad (-10) 10 Net exports (-20) 11 Net indirect taxes 80
Bureau of Economic Analysis in the USA is responsible for construction and maintenance of national income and product accounts (NIPA). Measurement began in the 1930s due to frustration of Roosevelt and Hoover trying to design policies to combat the Great Depression. Simon Kuznets (Nobel laureate) was commissioned to develop initial methodology and estimates. In 1947, the process became much more consistent. Methodologies have frequently been changed (improved?) as a result of advances in economics, accounting, and data collection. Past data are then revised to reflect new definitions. On the following information, calculate GNP at factor cost. Whether GNPFC derive from income method equivalent to expenditure method? S.No. Items Rs. (In Crores) 1 Private final consumption expenditure 1000 2 Net domestic capital formation (Investment) 200 3 Profit 400 4 Compensation of employers (Wages and salaries) 800 5 Rent 250 6 Government final consumption expenditure 500 7 Consumption of fixed capital (Depreciation) 60 8 Interest 150 9 Net factor income from abroad (-10) 10 Net exports (-20) 11 Net indirect taxes 80
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Bureau of Economic Analysis in the USA is responsible for construction and maintenance
of national income and product accounts (NIPA). Measurement began in the 1930s due to
frustration of Roosevelt and Hoover trying to design policies to combat the Great
Depression. Simon Kuznets (Nobel laureate) was commissioned to develop initial
methodology and estimates. In 1947, the process became much more consistent.
Methodologies have frequently been changed (improved?) as a result of advances in
economics, accounting, and data collection. Past data are then revised to reflect new
definitions.
On the following information, calculate GNP at factor cost. Whether GNPFC derive from
income method equivalent to expenditure method? S.No. Items Rs. (In Crores)
1 Private final consumption expenditure 1000
2 Net domestic capital formation
(Investment)
200
3 Profit 400
4 Compensation of employers (Wages and
salaries)
800
5 Rent 250
6 Government final consumption
expenditure
500
7 Consumption of fixed capital
(Depreciation )
60
8 Interest 150
9 Net factor income from abroad (-10)
10 Net exports (-20)
11 Net indirect taxes 80
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education