pls solve this ques within 10-15 minutes with a complete explanation and also explain why other options are wrong, I'll give you multiple upvotes Question 7Double counting occurs whenincluded in the calculation of the GDP, leading to anoverstatement of GDP.Question 7 options:intermediate inputs areunsold inventories aredepreciation ishousehold production is

lets take an example of a producer A producing chocolate as his final product. now for the…

Double counting occurs when overstatement of GDP. included in the calculation of the GDP, leading to an Question 7 options: intermediate inputs are unsold inventories are depreciation is household production is

Double counting occurs when overstatement of GDP. included in the calculation of the GDP, leading to an Question 7 options: intermediate inputs are unsold inventories are depreciation is household production is

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Related questions

Q: Gross private domestic investment is one of four expenditure values used in: Select one: national…

A: Gross private domestic investment is that amount of money which is invested by businesses with in…

Q: diffrenciate between Nominal and real GDP.

A: In economics, gross domestic product (GDP) is one of the economic tools that is used to determine…

Q: Ahlam grows carrots in her garden for home consumption. This activity is: a. Excluded from GDP…

A: Activity will be included in GDP when it is produced by the producer and offered in the market for…

Q: is always equal to gross domestic income in the circular flow of income and expenditure. a. Gross…

A: Circular flow model explains how an economy functions. It analyses the way goods, services and money…

Q: GDP at market prices R397bn Net primary income payments to the rest of R37bn the world Indirect…

Q: Nominal GDP is the real GDP divided by the population in a given fiscal or calendar year. Answer:…

A: Basics:- Nominal GDP is the current value of all the goods and services produced by country in a…

Q: The index used most often to measure prices paid by households is the: a) producer price index…

A: The measure that depicts for a given class of goods or services the average of price relatives being…

Q: An economy is currently in equilibrium. The following figures refer to elements in its national…

A: Given, Consumption (C)=70 billionInvestment (I)=6 billionGovernment expenditure (G)=7 billionImports…

Q: Final goods or services used to corpute GDP refer to the value of outstanding shares of stock of…

A: The measure that depicts the final value of goods and services being produced in an economy during a…

Q: Depreciation is included in GDP, but excluded from NNP, true or false.

A: This is because the net rise in the value of capital goods in a country over the course of a year is…

Q: The purchase of Google stock is included in GDP because it represents an economic investment. 1)…

A: There are some precautions while estimating national income or GDP of a country in all three methods…

Q: The gross domestic product (GDP) of the United States is defined as the in a given period of time.…

A: Gross Domestic Product: It refers to the final value of all the goods and services manufactured in…

Q: The gross domestic product (GDP) of the United States is defined as the market value of all final…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: You are given the following GDP data (in millions of dollars) for Canada for a give GDP: 1,720,748…

A: Gross domestic product is a monetary measure of the market value of all the services and final goods…

Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…

A: Solution:- Blanks- 1) market value of 2) final goods and services 3) by resources within the US

Q: Which of the following is wrong? Select one: a. In the expenditures approach to GDP we subtract…

A: a) This statement is considered true as imports are deducted in the expenditure approach as they are…

Q: Suppose the government's national income and product accounts revealed the following information:

A: The total amount of income coming to a country from economic activities over the course of a year is…

Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…

A: GDP measures the market value of all final goods and services produced within the United States in a…

Q: The GDP deflator is: also known as the wholesale price index. equal to 100 in the base year. the…

A: GDP price deflator helps economists compare the levels of real economic activity from one year to…

Q: Suppose that in an economy, consumer expenditures are $2,790, government purchases are $790, and…

A: Here, given information is, Consumption: $2,790 Government purchases: $790 Investment spending:…

Q: Although they are within legal limits, Company X's operations are causing toxins to build up in the…

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

Q: One of the shortcomings of GDP is that it: a. excludes non-market activities b. excludes the value…

A: GDP is the market value of final goods and services produced within a country during an accounting…

Q: The following data were recently obtained from the BEA; values are in billions of dollars: Personal…

A: Gross Domestic Product (GDP) measures the value of final goods and services produced with in the…

Q: Calculate the national income for 2021 if the national domestic product at factor cost is $6500…

A: The information being given is:- National domestic product at factor cost = $6500 million Net factor…

Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…

A: GDP stands for Gross domestic product. In this case US GDP is being discussed and we are required to…

Q: Gilberto and Juanita Ivanov live in Swarthmore, PA. Juanita's father, Lorenzo, lives in Sweden. For…

A: GDP is the total value of goods and services produced by a country’s economy during a given period…

Q: Manuel and Poornima White live in Swarthmore, PA. Their son, Shen, owns his own plumbing business.…

A: Components of GDP:- C= Consumption I= Investment G= Government spending X= Export M= Import

Q: Which of the following is included in the computation of Gross Domestic Product (GPD)? A. Govemment…

A: GDP is the market-value of all the final goods and services(G&S) produced within the…

Q: Imports enter the calculation of GDP Multiple Choice with a positive sign. with a negative sign.…

A: In calculating GDP, five components are broadly included that are: Consumption Imports Government…

Q: Units of Price Per Year Output Unit 1 3 $ 3 2 4 4 6. 5 4 7 7 8 8 Assume an economy that makes only…

A: Real GDP is an expansion changed measure that mirrors the amount of labor and products created by an…

Q: Broken window fallacy pertains to: errors in estimating the GDP figures neglect of short term…

A: In economics, the broken window fallacy refers to the economic situation when an economy is…

Q: The gross domestic product (GDP) of the United States is defined as the _market value of v all final…

A: Gross domestic product is defined as the market value of final output generated within the economy.

Q: Calculate the aggregate production rate:

A: Cost Accounting refers to the accounting which helps in calculating the cost of the product &…

Q: Ahlam grows carrots in her garden for home consumption. This activity is: a. Excluded from GDP…

A: GDP stands for gross domestic product. GDP measures the market value of final goods and services…

Q: The gross domestic product (GDP) of the United States is defined as the _________ (options: cost of…

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

Q: Intermediate goods are excluded from the GDP calculation to avoid double counting. Select one: a.…

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

Q: Real GDPa. is the current dollar value of all goods produced by the citizens of an economy within a…

A: GDP is the production of final goods and services within the boundary of a country in the financial…

Q: Question 9 Which of the following affects this year's GDP? There may be more than one answer. a) The…

Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…

A: Gross domestic product measures the value of goods and services that are produced in a given year…

Q: The product approach to measuring GDP values government production at (a) market prices. (b) its…

A: In an economy, product approach is also known as the output approach because it records the value…

Q: Spending by households on goods and services is considered one of the GDP Components. Select one:…

A: Gross domestic product (GDP) is the final value of all goods and services produced in an economy. It…

Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…

A: GDP is a measure of National Income of a country.

Q: Mention three difficulties in calculating national income by expenditure method.

A: National income is an income which is accordingly and generally produced by a country during a…

Q: Calculate imports in 2020, if exports in 2020 were $21,000 and the net exports is $11,500

A: The information being given is as follows:- Exports in 2020 = $21,000 Net exports = $11,500 We have…

Q: Which of the following are excluded from real GDP? A. The value of non-market services performed by…

A: The GDP refers to the production of goods and services during an accounting year. GDP does not…

Question

pls solve this ques within 10-15 minutes with a complete explanation and also explain why other options are wrong, I'll give you multiple upvotes

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1-When double counting happens?

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

National Income DeterminationThe following figures are from data on Good Island EconomyItems $mNet private investment 940Depreciation 56Compensation of employees 2 256Corporate taxes 416Personal taxes 756Personal Consumption expenditure 4 386Government purchases 3 182Indirect business taxes minus subsidies 482Payment of factor income to the rest of the world 95Corporate profits minus dividends 56Government transfer payments and interest 243Exports 855Receipts of factor income from abroad 186Imports of goods and services 385Social insurance payments 332 Required: Use the above information to answer the followingi.) Calculate for Good Island:a. Gross private investment b. Gross Domestic product c. Gross National Product d. Net National Product e. National income f. Personal Income g. Disposable Personal Income
Suppose the data BELOW is for a given year from the annual Economic Report of the President. Calculate GDP using the expenditure approach (Amount in billions of dollars): Corporate profits: $ 305Depreciation: $ 479Gross private domestic investment: $716Personal taxes: $ 565Personal saving: $120Government spending: 924Imports: $ 547Exports: $ 427Personal consumption expenditures: $ 2,966Indirect business taxes: $ 370Contributions for Social Security (FICA): $ 394Transfer payments and other income: $ 967
The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total productionand average prices of shoes and computers are displayed in Table 2 attached. (a) Compute the nominal GDP of Fantasia for 2019 and 2020 (hint: calculate the total value ofproduction in each year) (b) Compute the real GDP of Fantasia in 2020 using 2019 prices
You are given the following information about an economy: $ Millions GDP at Market Prices -1,,669.4Imports- 290.5Gross Domestic Capital Formation -48.7Income accruing to the Public Sector -39.0Retained Business Earnings -75.9Exports -273.4Subsidies -16.8Factor Payments from Abroad -10.0Capital Consumption Allowance -10.5Income Payments to Foreigners -19.2Direct Taxes -355.6Public Sector Consumption Expenditure- 490.1Indirect Taxes -297.3Transfer Payments -25.7 Derive the following:(i) National Income (ii) Net Investment (iii) Personal Income
You are given the following information about an economy: $ Millions GDP at Market Prices -1,,669.4Imports- 290.5Gross Domestic Capital Formation -48.7Income accruing to the Public Sector -39.0Retained Business Earnings -75.9Exports -273.4Subsidies -16.8Factor Payments from Abroad -10.0Capital Consumption Allowance -10.5Income Payments to Foreigners -19.2Direct Taxes -355.6Public Sector Consumption Expenditure- 490.1Indirect Taxes -297.3Transfer Payments -25.7 Derive the following:(iv) Disposable Income (v) Household Consumption Expenditure
In the economy of Kwartengland, the following figures are given for economic activity which was undertaken in 2013. All the figures are million Ghana Cedis Consumption Expenditure = 1000 + 0.8 YD Investment Spending= 600 Government Expenditure = 2450 Personal Taxes= 100 Exports= 100 Imports= 150 1. Calculate the investment and tax multipliers 2. By how much should exports change if government wishes to increase real GDP by 1000?
Assume you have the following data for a hypothetical country for a specific year (in billions of ZAR):Wages and Salaries: R2,500Interest: R300Rent: R200Profits: R1,000Taxes (Indirect Taxes Minus Subsidies): R400Depreciation: R500Given the data above, which of the following methods of calculating Gross Domestic Product (GDP) may beused?A. Expenditure approachB. Income approachC. Product approachD. Trade approach
You are given the following information about an economy: $millionsGDP at Market Prices 1,669.4Imports 290.5Gross Domestic Capital Formation 48.7Income accruing to the Public Sector 39.0Retained Business Earnings 75.9Exports 273.4Subsidies 16.8Factor Payments from Abroad 10.0Capital Consumption Allowance…
You are given the following information about an economy: $millionsGDP at Market Prices 1,669.4Imports 290.5Gross Domestic Capital Formation 48.7Income accruing to the Public Sector 39.0Retained Business Earnings 75.9Exports 273.4Subsidies 16.8Factor Payments from Abroad 10.0Capital Consumption Allowance…
Suppose you are given the following data for a particular economy (unit: Millions of Euros):Gross National Income mp (GNImp) =1650Investment (I) = 220(Iliq) Net investment = 210Private consumption(C) =1100Net External Income (NEI) = 0Net Indirect Taxes (NIT) = 231Public Spending (G) = 363 Calculate: a) Balance of Goods and Services or Net Exports (NX) and Amortizations/Depreciations (A). b) Net National Product at Base Prices (NNPbp) and Net Domestic Product at Base Prices (NDPbp)
Please give a detailed solution with an explanation. Please double-check your sources and make sure the answer is 100% correct. Make sure ALL questions are answered too.Blank Answer #1:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #2:this year's pricesthe base year's pricesBlank Answer #3:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #4:this year's pricesthe base year's pricesBlank Answer #5:produced domesticallybought by consumers
Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70