1. Calculate the values for the blanks in the shaded areas of the table below (identify your responses in a logical fashion in your document): Expenditure Components of GDP by Country, 2018 (billions of US dollars) Australia Canada Denmark Finland India Jаpan 1650.6 2763.3 US 1870.5 13998.7 New Zealand UK |Consumption 808.7 996.9 165.9 146.1 120.0 Investment 842.7 1202.5 11.2 981.6 Business fixed investment 336.9 385.1 78.8 65.6 49.1 487.3 4260.7 Changes in inventories 0.1 275.5 9.4 2.9 3.4 27.4 0.1 5.8 54.7 2904.3 Government 357.1 86.6 62.7 312.1 38.4 528.3 Net Exports Exports Imports 348.5 312.0 544.9 581.1 197.9 176.4 917.1 904.4 106.8 548.6 657.0 58.2 856.8 108.8 2510.2 3148.5 58.1 907.1 GDP Source: UNData, UN Statistics Division, data.un.org, GDP by Type of Expenditure at current prices – US dollars 2. Based on the information in the table and your calculations for Question #1: Do any countries have positive net exports? Which one(s)? Which country has the largest negative net exports? 3. Suppose that a country asks for your advice about trade. Policymakers in the country want information about the impact of trade on GDP and whether they should be concerned about negative (or positive) net exports. Using the information in the table above as your guide, what advice would you give?
1. Calculate the values for the blanks in the shaded areas of the table below (identify your responses in a logical fashion in your document): Expenditure Components of GDP by Country, 2018 (billions of US dollars) Australia Canada Denmark Finland India Jаpan 1650.6 2763.3 US 1870.5 13998.7 New Zealand UK |Consumption 808.7 996.9 165.9 146.1 120.0 Investment 842.7 1202.5 11.2 981.6 Business fixed investment 336.9 385.1 78.8 65.6 49.1 487.3 4260.7 Changes in inventories 0.1 275.5 9.4 2.9 3.4 27.4 0.1 5.8 54.7 2904.3 Government 357.1 86.6 62.7 312.1 38.4 528.3 Net Exports Exports Imports 348.5 312.0 544.9 581.1 197.9 176.4 917.1 904.4 106.8 548.6 657.0 58.2 856.8 108.8 2510.2 3148.5 58.1 907.1 GDP Source: UNData, UN Statistics Division, data.un.org, GDP by Type of Expenditure at current prices – US dollars 2. Based on the information in the table and your calculations for Question #1: Do any countries have positive net exports? Which one(s)? Which country has the largest negative net exports? 3. Suppose that a country asks for your advice about trade. Policymakers in the country want information about the impact of trade on GDP and whether they should be concerned about negative (or positive) net exports. Using the information in the table above as your guide, what advice would you give?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:1. Calculate the values for the blanks in the shaded areas of the table below (identify your responses in a logical fashion in your document):
Expenditure Components of GDP by Country, 2018 (billions of US dollars)
Denmark Finland
Australia
Canada
India
Japan
New Zealand
UK
US
Consumption
808.7
996.9
165.9
146.1
1650.6
2763.3
120.0
1870.5
13998.7
Investment
Business fixed investment
336.9
385.1
78.8
65.6
842.7
1202.5
49.1
487.3
4260.7
Changes in inventories
0.1
9.4
2.9
3.4
27.4
11.2
0.1
5.8
54.7
Government
275.5
357.1
86.6
62.7
312.1
981.6
38.4
528.3
2904.3
Net Exports
Exports
Imports
348.5
544.9
197.9
106.8
548.6
917.1
58.2
856.8
2510.2
312.0
581.1
176.4
108.8
657.0
904.4
58.1
907.1
3148.5
GDP
Source: UNData, UN Statistics Division, data.un.org, GDP by Type of Expenditure at current prices – US dollars
2. Based on the information in the table and your calculations for Question #1:
Do any countries have positive net exports?
Which one(s)?
Which country has the largest negative net exports?
3. Suppose that a country asks for your advice about trade. Policymakers in the country want information about the impact of trade on GDP and whether they should be concerned about
negative (or positive) net exports. Using the information in the table above as your guide, what advice would you give?
Economic Growth
4. Based on information from the World Bank, in 2018, GDP per capita was $62,794.6 in the United States and $64,581.9 in Singapore - very similar values (and relatively high values
compared to many countries). But, the annual rate of GDP growth averages 2.3% in the United States and 2.7% in Singapore.
Would you predict the United States or Singapore to have a more rapid increase in the standard of living in the long run?
Discuss what evidence/theory from Chapter 7 you are using to support this prediction.
5. The United Nations Human Development Index (HDI) uses information about a country's life expectancy at birth (health), expected years of schooling and mean years of schooling
(education), and Gross National Income per capita (standard of living) to create a measure that ranges from 1 (very high) to 0 (very low). For 2017, the United States had a value of 0.924,
compared to 0.926 for Canada and 0.922 for the United Kingdom - very similar values, although not the highest of all countries.
Suppose a developing country (such as Eritrea with a value of 0.440 or Haiti with a value of 0.498) asks for your advice on which country it should try to emulate in order to increase its level
of development and economic growth. Which of the three countries above would you choose? Explain what additional information about each country would be important to making this
assessment.
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