Consider the following statementsregarding Gross Domestic Product:(i) It is the value added by all thefirms in the economy(ii) It is the final value of goods andservices produced in the economy(iii) It is the sum of final consumptionand investment expenditure andnet of exports and imports(iv) It is the income received by thefour factors of productionSelect the correct answer using thecode given below:(a) (i) & (ii) only(b) (i), (ii) & (iii only(c) (i), (ii) & (iv) only(d) All of the aboveActivateGo to Settir

The modern concept of GDP or Gross domestic product first was developed by Simon Kuznets.

Answered: Consider the following statements…

Consider the following statements regarding Gross Domestic Product: (i) It is the value added by all the firms in the economy (ii) It is the final value of goods and services produced in the economy

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider the following statements
regarding Gross Domestic Product:
(i) It is the value added by all the
firms in the economy
(ii) It is the final value of goods and
services produced in the economy
(iii) It is the sum of final consumption
and investment expenditure and
net of exports and imports
(iv) It is the income received by the
four factors of production
Select the correct answer using the
code given below:
(a) (i) & (ii) only
(b) (i), (ii) & (iii only
(c) (i), (ii) & (iv) only
(d) All of the above
Activate
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Gross Domestic Product represents...
Which of the following does GDP not directly include? The value of goods produced domestically and sold abroad The value of intermediate goods sold during a period The value of services rendered during a period The value of final goods and services produced, but not sold, during a period
Gross Domestic Product is: A. the industry expenditures on all final goods and services produced during the year at market prices B. the nation's expenditures on all final goods and services produced during the year at market prices C. the industry expenditures on all final goods and services produced during the year at governement set prices D. the nation's expenditures on all final goods and services produced during the year at government set prices
Which of the following would be in GDP expenditure-based in the national income accounts for Canada? Select one: a. The interest payments made to bondholders of a Canadian corporation b. The government builds a new hospital c.A Canadian corporation retains part of its earnings d. An annual salary of a high school teacher
Which of the following transactions would be included in the official calculation of GDP under the expenditure method? You make cookies to give as a gift to your parents. You buy a new iPod for listening to music. You illegally download music off the Internet to put on your new iPod. O Bridgestone sells $2 million worth of tyres to General Motors Holden. A student buys a used textbook at the bookstore.
The four parts of Gross Domestic Product (GDP) are: A. consumption, investment, government, and net exports B. consumption, investment, government, and imports C. consumption, investment, government, and exports D. consumption, investment companies, government, and net exports
Purchase of electricity by a family is: a. not counted in GDP b. counted as part of net exports c. counted as part of government purchases d. counted as part of private investment e. counted as part of consumption
GDP is the market value of resources (land, labor, capita, and entrepreneurship) in an economy in a given year all final goods and services produced in an economy in a given year consumption and investment spending in an economy in a given year all output produced and accumulated over the years
2. Given are the following sets of accounts: RM (Million) Compensation to employees Proprietor's income Corporate profits 5969.5 756.5 787.4 Net interest 684.2 Rental 142.4 Depreciation 1393.5 Indirect Taxes 44.4 Subsidies 22.6 Net factor payments to the rest of the world 9.6 a. Calculate the GDP using the income method.
2) Which of the following items are included in GDP? For those items not included, explain why they are not included in GDP. You make your own pasta sauce in your apartment. You grow basil on your apartment balcony. You travel to France and buy wine and cheese. Arçelik produced 100,000 washing machines in 2019 but half of them remain unsold at the end of the year. A farmer’s product purchased by a restaurant to serve to customers.
What is the GDP of this economy?
ITEMS RM (millions) Agriculture 18,000 Mining 12,000 Manufacturing 22,000 Constructions 8,000 Electricity, gas and water 1,800 Transportation and communication 900 Indirect tax 800 Subsidies 700 Government services 1,700 Other services 900 Capital consumption 500 Income received from abroad 750 Income paid to abroad 450 Based on the table above, calculate: Gross Domestic Product (GDP) at market price. Gross Domestic Product (GDP) at factor cost. 3. Gross National Product (GNP) at factor cost