Calculate GDP in the following economy given this information: Consumer purchases: $100 per year Investment purchases: $50 per year Government purchases: $20 per year Total exports: $50 per year Total imports: $70 per year.

Q: A farmer produces milk, which he sells to a mill for 1000 tk. The mill turns the milk into cream,…

A: GDP(Gross Domestic Product) is the total money value of all the goods and services produced in a…

Q: Explain why the GDP component does not include stocks and bonds

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Many financial analysts use GDP as a measure of the economy's performance. However, GDP has several…

A: The GDP is the summation of the money value of all the final goods and services produced within the…

Q: In measuring GDP, which of the following is NOT a factor payment? a. Government's transfers payment…

A: Factor payment approach to calculate GDP includes all factor payments earned by households, that is…

Q: Among the following, which would not be considered part of the investment component of GDP?   a.…

A: GDP is a macroeconomic measure that is used to determine the total aggregate production in a…

Q: why are goods and services in a country counted in GDP at market value; what are the disavantages of…

A: Answer: One of the most crucial criteria for evaluating a nation's productivity and economic…

Q: The expenditure approach to calculating GDP is best expressed by which of the following?     A.)…

A: GDP measures the value of goods and services that are produced within the country during a specific…

Q: Which of the following are included in this year’s GDP? Explain your answer in each. The income of a…

A: GDP computes the monetary value of final goods and services—that is, those that are purchased by the…

Q: Data for 2014 Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes 0.7 200 10 270…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Respond to the following in a minimum of 175 words:  Discuss the limitations of gross domestic…

A: Gross Domestic Product The total market value of all final goods and services produced within a…

Q: Discuss some of the reasons why economists should not consider GDP an effective measure of the…

A: Answer -

Q: Use the following table to answer the next question. The following national income data for an…

A: Gross Domestic Product (GDP) is the value of final goods and services produced within the domestic…

Q: Why GDP is criticized as a “deeply foolish” indicator of how an economy? What are the different…

A: The measure that depicts the total value of goods and services that are being produced in an economy…

Q: Suppose an U.S. farmer sells a truckload of sugar cane to a sugar refinery for $200. The refinery…

A: GDP refers to the total value of finished goods and services that produced within the economic…

Q: Which of the following is not included in the computation of the consumption component of gross…

A: The consumption function does include spending on durable and nondurable goods, and services in the…

Q: What is a real GDP? Why do economists prefer to use that as a measurement over regular GDP?

A: Real GDP is the final value of goods and services that are produced in the economy and are ready for…

Q: Explain concisely whether the following statement is true or false: “The GDP of a country does…

A: Answer: The given statement is false. Explanation: GDP (gross domestic product): GDP refers to the…

Q: The single largest expenditure component in GDP is      A) investment. B) consumption. C) exports.…

A: Gross domestic product (GDP) has four primary components to explain the total output generated…

Q: Are the following included or not in the measurement of Gross Domestic Product (GDP)? Explain your…

A: In an economy, any output that is generated in thate specfiic year and used for a final consumption…

Q: For each of the following transactions, determine if it takes place in the market for outputs or the…

A: The measure that depicts the market value of all the goods and services being produced in an economy…

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

A:

Q: produces apples, 1200 to consumers (final users) and 700 to Firm 2. Firm 2 produces apple juice,…

A: In GDP we include only the value of final goods and services produced within the given fiscal year.…

Q: d. You buy an antique vase at a resale shop. e. You make your own pasta sauce in your apartment. f.…

A: The value of all the goods and services produced in an economy during a given period of time at…

Q: Lotta Doe sells 100 shares of stock in Benson Buggywhip for $50 per share. She pays her broker a 2…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: Identify the effect on GDP due to the following factors. Factors Effect on GDP An improvement in…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: For each of the following examples, state if you think it is included in the 2010 calculation for…

A: GDP (Gross Domestic Product) measures the market value of all final good and services produced in an…

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: What is the largest component (C, I, G, or NX) of GDP? Give an example of each component.

A: The GDP is the summation of the monetary value of all the goods and services produced within the…

Q: Suppose an economy produces only cheese and fish.  In 2010, 20 units of cheese are sold at $5 each…

A: Calculate Nominal GDP for 2010 - Nominal GDP = [Quantity of cheese in 2010 * Price of cheese in…

Q: The following table shows some data for an economy that produces only two goods: milk and honey.…

A: we can be fill up the following blanks by using these methods   such as the formula of nominal…

Q: Use the information in the table below to answer  GDP at market prices =$397bn Net primary income…

A: The gross national income (GNI) refers to the total domestic and foreign output claimed by the…

Q: Suggest an argument for and an argument against counting in GDP all household-produced goods and…

A: The GDP measures the monetary value of an economic final production. It is equal to the total income…

Q: indirect business taxes and capital consumption allowance are not income, yet they are included in…

A: Tax is one of the biggest sources for government revenue through which government meets its…

Q: GDP is a good and useful measure of general economic activity for each of the following reasons…

A: Answer: Option C (The total value of GDP is lower if the distribution of income is lower and less…

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

A: GDP of a country estimates all the transactions within the boundary of a country. It is considered…

Q: Suppose a group of British investors finances the construction of a plant to manufacture skateboards…

A: GDP refers to the aggregate value of total output of all goods and services produced within the…

Q: List some of the reasons why economists should not consider GDP an effective measure of the standard…

A: Standard of living is the element that affects the happiness of people, either these elements are…

Q: Which of the following is true about the components of GDP?   When we buy stocks, this is economic…

A: GDP is defined as the market prices of all goods and services produced in a domestic country in a…

Q: You are an economist calculating the Gross Domestic Product of Oman. To calculate GDP, you will…

A: The Gross domestic product (GDP) is the market worth of every final and service produced inside a…

Q: Suppose that an Al Khaleej Food company owned entirely by Emirati Business Group opens a new…

A: 1. If an Al Khaleej Food company owned entirely by Emirati Business Group opens a new Restaurants…

Q: Which one of these items will not be a part of the current year's GDP? а. Spending of the government…

A: Transfer payments are not included in GDP.

Q: Can you give two examples of goods or services that are in GDP and two examples of goods or services…

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

Q: Ben is a farmer who grows oranges. In the current year Ben produces oranges valued at $54,087, half…

A: GDP refers that Gross domestic production which means value addition of production of goods and…