Q7 7GDP tends to underestimate the productive activity in the economy because it excludes:Multiple Choicethe work done by construction companies to remodel homes.the personal labour time homeowners spend on home repairs.spending by businesses to reduce the level of pollution.spending by the government on military goods.

Gross Domestic Product refers to the market value of all final goods and services produced within…

Answered: GDP tends to underestimate the…

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter15: Gross Domestic Product

Section: Chapter Questions

Problem 5SQ

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GNP includes: A) neither intermediate nor final goods. C) intermediate, but not final, goods. B) both intermediate and final goods. D) final, but not intermediate, goods.
To determine the correct level of GNP (Gross national product), it is necessary to:(A) Add up the values of goods and services during one year(B) Add up all savings(C) Count all imports(D) Add up the value of semi-finished goods
GNP: PLUSES AND MINUSES The gross national product in recent years has basked in the warm glow of nearly universal praise. Econo mists, quite naturally, have been freest with the encomiums. Where else but the GNP could they get in one tidy number a measure of the growth in the mammoth U.S. economy. Businessmen, though not entirely persuaded of the value of statistics, especially esoteric statistics, nevertheless have been known to quote the GNP—possibly because of its powers to impress audiences with the speaker's grasp of the "big picture." Politicians, too, have been extravagant in their admiration of GNP, most especially when it was rising at a brisk pace. Even the ubiquitous cocktail party has paid homage to the GNP as assorted junior executives, research assistants, housewives, and dancing instructors have pronounced on the latest GNP numbers with a solemn and knowing air. Now all that seems to be changing. GNP increasingly is coming under attack. Dr. Arthur F.…
Figured in #2 is 120,448
Compute the GNP using the Income Approach and Expenditure Approach. Personal Consumption ExpendituresP 1,059,000 Compensation of employees and entrepreneurial & propertyIncome of persons980,000 Government Income31,000 Indirect Taxes132,500 Exports of goods and non-factor services648,200 Fixed Capital Formation232,400 Government Services116,000 Imports of goods and non-factor services648,100 Subsidies3,900 Trade237,000 Increase in Stocks7,200 Corporate Income16,000 Depreciation Allowance176,000 General Government Consumption Expenditures86,500 Net Factor Income From Abroad20,600
The country’s GNP will contain the following except _______. a. Salaries of the expatriates living in the country b. Earnings of locally owned companies c. Rental income of houses owned by citizens d. Salaries of citizens of the country
If households pay $1,000 in interest payments and receive $1,200 in interest, wages equal $9,000, rental receipts on land are $200, total business profits before taxes are $2,200, depreciation is $1,750, and indirect business taxes are $1,000, then gross domestic income is
true or false and provide a reason to support answer Intermediate goods and services are one of the largest components of the expenditure approach to measure Gross Domestic Product (GDP).
uestion 19 Suppose a DVR is bought from China for $200 and sold in the US for $250. GDP will count this as $200. as $250. as a net of $50 ($250 sale minus $200 import). as nothing.
GDP includes the value of final goods and NOT intermediate goods because : A. the value of intermediate goods doesn't matter. B. the value of intermediate goods is too difficult to measure. C.The value of intermediate goods is measured by GNP. D.of double counting.
Exports of goods and services 1,872 Imports of goods and services 2,375 Net unilateral transfers -99 Net Investment Income 170 Capital Account -7 Net US acquisition of financial assets 958 Net US incurrence of liabilities 1,391 Net financial derivatives -14 Based on table above, the statistical discrepancy is Group of answer choices 15 8 0. -8 -15
Q.No.1. Differentiate the following by giving at least one practical example National income Vs Personal income

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