A car manufacturing company produces a $20,000 car using $16,000 worth of components and$4,000 worth of labour. The contribution to GDP is: 1.$40,000 2.$16,000 3.$4,000 4.$36,000

Q: Which of the following does NOT add to U.S. GDP? a. Air France buys a plane from Boeing, the U.S.…

A: GDP: Gross domestic Production or GDP is the final value of all the goods and services that are…

Q: What component(s) of GDP (if any) would each of the following transactions affect? Explain. 1. A…

A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…

Q: A farmer sells wheat to a baker for $2. The baker uses the wheat to make bread, which is sold for…

A: Intermediate goods are the goods used to create another product. Intermediate goods are inputs in…

Q: Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille…

A: Gross domestic product is the sum of value of final goods and services produced in the economy…

Q: Suppose Nucor Steel sells $2,000 worth of steel to Ford, other producers sell $5,000 worth of other…

A: Answer: GDP refers to the value of only final goods and services produced in a year. It does not…

Q: Why does the investment components of GDP includes purchase of new capital goods but no purchase of…

A: GDP measures the final value of all goods and services that are produced within the domestic…

Q: n 2015, a producer of wine purchased ingredients for $1 million, labor for $0.5 million, and…

A: Given: Purchase of ingredients=$1 million Labor=$0.5 million Equipment=$0.5 million

Q: Arthur sells $100 worth of cotton to Bob. Bob turns the cotton Into cloth, which he sells to Camille…

A: In an economy, value added method is one of the way to compute the overal income or contribution of…

Q: Q.2. John a farmer sells tomatoes to Joseph the tomato sauce manufacturer for K350 . Joseph makes…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: Last year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100…

A:

Q: four components of GDP

A: GDP(gross domestic product) is the value of all goods & services that are produced by an economy…

Q: The difference between measuring GDP with the income approach and the expenditure approach is the…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: Exports Consumer semi-durables Profits Consumer services 1. Calculate Consumption, Investment,…

A: Gross domestic product (GDP) is the standard degree of the value introduced created through the…

Q: Billions of Dollars Gross private domestic investment $2,200 Depreciation $1,887 Exports $2,820…

A: Answer: GDP calculation by expenditure approach: This approach measures the GDP as a sum of total…

Q: The truck manufacturer purchased $8,000 in intermediate goods produced this year by domestic firms…

A: Gross domestic product or income refers to the total market value of goods and services produced…

Q: During 2009, the leather company produced enough leather for 20 couches.  The couch manufacturing…

A: GDP: The GDP is the value of all finished goods and services or products produced in the economy…

Q: An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are…

A: Given information: Price of tomatoes in 2014 = $2 Price of Ketchup in 2014 = $7 Price of tomatoes in…

Q: A farmer grows a bushel of wheat and sells it to a Miller for $20.00. The Miller turns the wheat…

A: Since you have asked multiple subparts, we would solve the first three for you. To get the remaining…

Q: Which of the following are included in GDP, and which are not? a. The cost of hospital stays b. The…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: (i) Explain the difference between Gross Domestic Product (GDP) and Gross National Income. (ii)…

A: i)The entire amount of all the money earned by a nation's population and enterprises is known as…

Q: A farmer grows a bushel of wheat and sells it to a Miller for $20.00. The Miller turns the wheat…

A: According to question, A farmer produces a bushel of wheat and sells it for $20.00 to a Miller. The…

Q: In the year 2016: • The Fisherman caught fish worth $30, of which $10 was sold to the Restaurant and…

A: GDP is the sum total of market value of final goods and services produced in a country during a…

Q: During 2009, the leather company produced enough leather for 20 couches. The couch manufacturing…

A: GDP based on value added method = value sold to leather company 16000 + 4000 + value added by couch…

Q: Derive the following: (i) (ii) (iii) (iv) (v) National Income Net Investment Personal Income…

A: As per the guidelines solution is provided to the first 3 sub-parts: (i) National income = GDP at…

Q: The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis.…

A: Gross domestic product (GDP) is a standard measure of the value-added generated by a country's…

Q: A firm manufactured a computer hard desk and keyboard and sell to a computer manufacturing firm for…

A: Contribution to GDP is the final added value. It is the monetary value of final added goods and…

Q: The factor payments measure of GDP

A: GDP can be measured using the expenditure approach: Y = C + I + G + (X – M).

Q: Imports Exports Consumer 80 billion 40 billion 185 billion semi-durables Profits 320 billion.…

A: Gross domestic product (GDP) is the standard degree of the value introduced created through the…

Q: 1. Which of the following is not included in the consumption component of GDP? Group of answer…

A: 1. The consumption component of GDP includes consumption of services, consumption of durable goods…

Q: The expenditure and value-added approaches to calculating GDP arrive at the same final number, but…

A: GDP can be calculated by using 3 methods which are the income method expenditure method and the…

Q: firm manufactured a computer hard desk and keyboard and sell to a computer manufacturing firm for…

A: In the calculation of GDP we only use the value of final goods and computer is the final good whose…

Q: Suppose a Farmer produces wheat and sells it for $2,000 to flour Mill. Flour Mill converts it flour…

A: Gross Domestic Product is the money related estimation of all finished goods and services made…

Q: In 2013, Blackberry bought $100 million in parts in New York and $150 million in parts in Ontario to…

A: the term value added refers to the contribution of the factors of production (i.e. capital and…

Q: Which of the following transactions are or are not included in GDP? 1. The pollution created when…

A: 1)Not included in GDP Because externalities does not account for GDP. 2)Not included in GDP Because…

Q: A farmer grows a bushel of wheat and sells it to a miller for $1. The miller turns the wheat into…

A: Gross domestic product is the market value of all goods and services produced in the economy in a…

Q: Assume that apples cost $0.50 in 2002 and $1 in 2007, whereas oranges cost $1 in 2002 and $1.50 in…

A: Solution:-  Cost of apple in 2002 = $0.50 Cost of apple in 2007 = $1 Cost of oranges in 2002 = $1…

Q: What activity is not included in the GDP? Emily cooked some soup for the customers in the restaurant…

A: The abbreviation "GDP" refers to the "Gross Domestic Product," which is the total monetary value of…

Q: A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into…

A: GDP is the gross domestic product which is the value of total goods and services produced in an…

Q: A farmer sells wheat to a baker for £5. The baker uses the wheat to make bread, which is sold for $8…

A: A farmer sells wheat to a baker for £5. Note: Assuming farmer does not use any intermediate goods…

Q: A Chinese restaurant buys 100 cups of rice for a total of $10; they buy soy, fish and oyster sauces…

A: Gross domestic product is the value of all the final goods and services produced in the country in a…

Q: A farmer sells cucumbers to a food processor for $1.50 per pound. The food processor makes the…

A: GDP measures the market value of all final goods and services produced within an economy in a given…