Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
Bartleby Related Questions Icon

Related questions

Question

 

  1. Consider the scenario. The country Global-Land is really small and only has 500 In 2023 in total, they spend ECD 200,000 per year on food, ECD 200,000 on clothing, and ECD 100,000 on public and private transport. The economy of Global-Land has three industries: Juice, Clothing and Furniture. The output of each industry is disposed either on the domestic market or exported. The institutional sectors of the economy are the Household, Government, Corporate and Rest of the World, which either purchase the products of the industries or provide the factor services. The Juice and Clothing industries just bought ECD 2,000,000 worth of new machinery. Meanwhile, the Furniture is the largest industry. This industry has increased its inventory by ECD 200,000 as compared to the previous year. In addition to that, a Global-Land resident buys a new house worth ECD 300,000. Of course, the government of Global-Land knows how important education is. Therefore, it spends ECD 1,000,000 a year to run a public school and pay all the teachers who work there. In addition to that, the government contributes ECD 500,000 to fix broken roads and highways throughout the year. In addition, Global-Land total domestically produced goods and services is worth ECD 1,500,000 this year. In the meantime, the country also purchase foreign goods and services is worth ECD 1,000,000.

 

a.   Using the information provided in the scenario, calculate GDP using the expenditure approach. Please show all                components of each measure. 

b.   Further information on the activities of the Juice industry in 2023 is provided in table 2.1 below in millions of Eastern         Caribbean dollars (ECD).

Table 2.1

 

 

ECD million

Subsidies

0

Gross national product at market prices

300

Imports

30

Net national product

275

Exports

30

Net national product at factor cost

260

Personal savings

15

Personal income

225

Government transfer payments

5

Undistributed corporate profits

20

Government expenditure on commodities

40

Personal consumption

160

Using the following Global-Land 2022 data in table 2.1 provide Estimates of the Following Key

National Accounting Aggregates:

i. Personal disposable income

ii. Indirect taxes

iii.  Net investment

iv.  Depreciation

v.   Corporate income taxes

vi.  Personal income taxes

Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Text book image
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,