MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 1SQ
To determine
The calculation of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Identify the statement that describes the Gross Domestic Product of a country.
a.
All goods and services that are imported to the country
b.
All goods and services that are produced within a nation's borders.
c.
The amount of intermediate goods produced inside the country
d.
All goods and services that are produced outside a country's borders
Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions.
Category
Billions
Compensation of employees
$226.2
U.S. exports of goods and services
19.8
Consumption of fixed capital
11.8
Government purchases
59.4
Taxes on production and imports
14.4
Net private domestic investment
52.1
Transfer payments
13.9
U.S. imports of goods and services
16.5
Personal taxes
40.5
Net foreign factor income
2.2
Personal consumption expenditures
249.1
Statistical discrepancy
0.0
Instructions: Round your answers to 1 decimal place.
a. GDP = $ billion
b. NDP = $ billion
c. NI= $ billion
The GNP of a country is $200 billion, receipts of factor income from the rest of the world are $10 billion, payments of factor income to the rest of the world are $30 billion, and depreciation is $25 billion. What is the GDP and the Net National Product?
Chapter 5 Solutions
MACROECONOMICS FOR TODAY
Ch. 5.6 - Prob. 1YTECh. 5 - Prob. 1SQPCh. 5 - Prob. 2SQPCh. 5 - Prob. 3SQPCh. 5 - Prob. 4SQPCh. 5 - Prob. 5SQPCh. 5 - Prob. 6SQPCh. 5 - Prob. 7SQPCh. 5 - Prob. 8SQPCh. 5 - Prob. 9SQP
Ch. 5 - Prob. 10SQPCh. 5 - Prob. 11SQPCh. 5 - Prob. 12SQPCh. 5 - Prob. 13SQPCh. 5 - Prob. 1SQCh. 5 - Prob. 2SQCh. 5 - Prob. 3SQCh. 5 - Prob. 4SQCh. 5 - Prob. 5SQCh. 5 - Prob. 6SQCh. 5 - Prob. 7SQCh. 5 - Prob. 8SQCh. 5 - Prob. 9SQCh. 5 - Prob. 10SQCh. 5 - Prob. 11SQCh. 5 - Prob. 12SQCh. 5 - Prob. 13SQCh. 5 - Prob. 14SQCh. 5 - Prob. 15SQCh. 5 - Prob. 16SQCh. 5 - Prob. 17SQCh. 5 - Prob. 18SQCh. 5 - Prob. 19SQCh. 5 - Prob. 20SQ
Knowledge Booster
Similar questions
- Which of the following are included in GDP calculations? a. Cleaning services performed by Molly Maid Corporation b. Lawn-mowing services performed by a neighborhood child c. Drugs sold illegally on a local street comer d. Prescription drugs manufactured in the United States and sold at a local pharmacy e. A rug woven by hand in Turkey f. Air pollution that diminishes the quality of the air you breathe g. Toxic-waste cleanup performed by a local company h. Car parts manufactured in the United States for a car assembled in Mexico i. A purchase of 1,000 shares of IBM stock j. Monthly Social Security payments received by a retireearrow_forwardGross domestic product (GDP) is defined as the: A. value of all final goods and services produced in a country during a period of time B. value of all final goods produced by a country’s resources that are in foreign countries during a period of time. C. value of all final goods that can be produced in a country by utilizing all resources during a period of time. D. value of the income earned by the owners of resources in a country during a period of time E. value of all intermediate goods and services produced in a country during a period of timearrow_forwardThe measure to measure the value of the total final production in a country during a year is the gross domestic product. Which variables determine the gross domestic product? What are the two approaches that are used to measure gross domestic product?arrow_forward
- how to calculate gross national income from gross domestic productarrow_forwardWhich of the following would be captured and included in the calculation of GDP? A) The cost of hospital stays. The rise in life expectancy over time. (C) Child care provided by a licensed day care center. Child care provided by a grandmother at home. A used car sale to the Brown family. A new car sale to the Brown family. (G) The greater variety of cheese available in supermarkets. The iron that goes into the steel that goes into a refrigerator bought by the Brown family.arrow_forwardI. Imports are flows of payments to domestic households from foreign firms in exchange for goods and services II. Exports are flows of payments to domestic firms from foreign households in exchange for goods and services III. Imports are added to the GDP computation to account for goods and services produced by other economies but included in consumption, investment, or government spending IV. Exports are deducted from the GDP computation to account for goods and services produced by the economy but not included in consumption, investment, or government spending O All Statements are false Only Statement I is false Only Statement II is true O Only Statement II is false All Statements are truearrow_forward
- Gross domestic product is a measure of _______.the nonmarket production of goods and services.the volume of goods and services, which involved in international tradethe goods and services produced strictly by corporations.the money value of all final goods and services produced in a year by the economy.the size of the largest industry in an economy.arrow_forwardResidents of several European countries spend less time working and more time on leisure activities than do people in the U.S. How is this great leisure time accounted for in Gross Domestic Product measurements?arrow_forwardWhich of the following would be included in the calculation of gross domestic product (GDP)? The value of transfer payments The value of the sale of a used car The value of the sale of 1,000 shares of Apple stock The value of spending on new machinery and equipment The investment (I) portion of GDP includes the amount spent on capital goods. the amount spent on stocks and bonds. the amount spent on consumer goods that last more than one year. the amount spent on purchases of jewelry.arrow_forward
- Why does gross domestic product measure the final value of goods and services produced in a country over a given period of time?arrow_forwardGDP can be computed as the sum of A) all sales that have taken place in an economy over a period of time. B) the total expenditures of consumers and business over a period of time. C) the total expenditures of consumption, investment, and government expenditure on goods and services over a period of time. D) the total expenditures of consumption, investment, government expenditure on goods and services, and net exports over a period of timearrow_forwardWhich of the following acts are included in official gross domestic product (GDP) calculations? Dan is a volunteer coach for his daughter’s soccer team. Sue is a mother of two who has decided to withdraw from the labor force to care for the children until they are teenagers. Linda sees that her gutters are clogged with leaves and spends her Saturday cleaning out the gutters. Kathy is paid to be the assistant soccer at the local high school. Eric spends his Tuesday afternoons volunteering to read books to the children at the public library. Explain the answer with explanationsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning