Shane who is a farmer of a city bought a tractor worth $18,500 from an importer so that the mango orchard he is taking care of would bare more fruits to be exported later. A. Investment B. Consumption C. Import D. Net export

Shane who is a farmer of a city bought a tractor worth $18,500 from an importer so that the mango orchard he is taking care of would bare more fruits to be exported later. A. Investment B. Consumption C. Import D. Net export

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Related questions

Q: Assume an economy where spending for each sector is: Household: C = 800 + 0.95Q Business: I = 3000…

A: GDP is the value of goods and services produced in the economy. It is the sum of consumption,…

Q: The goods and services that we sell to people in other countries are The goods and services that we…

A: The answer to the sub parts of your question are as follows :

Q: Discuss wether all firms in a country will welcome a change in people’s income.

A: Income plays a crucial role in deciding the purchasing power of individuals in an economy. The…

Q: How much are they spending for the products of the country. a. consumption b. investment c. gross…

A: The used approach, otherwise called the spending approach, ascertains spending by the various…

Q: .Jane spends $800 on a computer to use in her editing business. She got last year's model n sale for…

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

Q: Domestic GDP Expenditure Exports Imports Total Expenditures (Y) C + I + G (X)…

A: An open economy is one that allow it's citizens to make trade transactions with any other country in…

Q: If Ford sells 200 Explorers for a total of $400,000 to Germany, while the United States imports 100…

A: Net exports= Exports - Imports Ford sales of 200 explorers to Germany is US exports and Germany's…

Q: 12) In 2018, the total consumption in the X Country was $22,400 and the total investment activities…

A: GDP by expenditure approach combines the actual expenditures realized by the four major pillars of…

Q: a. Economists referring to investment mean the: O purchase of financial assets within an economy. O…

A: By economist investment means creation of capital goods in order to increase production.

Q: a) You have an avocado tree, growing 100 avocados this year, 0 next year. Neighbor's tree grows 0…

A: Assumption Let's Take = 1 yearlet's take next year = 2 year Given Information Our current production…

Q: ) National Income b) Net investment c) Personal Income

Q: The country of Sylvania has a GDP of $900, investment of $200, government purchases of $200, and…

A: The balance of trade, commercial balance, or net exports, is the difference between the monetary…

Q: nventory nvestment $20 Net Exports -$100 Emall Business Eapital Consumption Government capital…

A: (GDP) is the standard proportion of the worth added made through the manufacturing of labor and…

Q: Given the following data for Jamrock country work out the following: US$mn. Private Consumption…

Q: Simple economy Q4. Gorgonzola cane, yo-yos, rum, peanuts, harmonicas, and peanut butter. Assume that…

A: Gross domestic product (GDP) is that the total financial or market price of all the finished product…

Q: 6. Then according to the table (in billions of dollars), $1,000 $80 $200 $480 $120 $300 $400 $750…

Q: a.) How will COVID impact China’s GDP and consumption? b.) How did COVID affect manufacturing…

A: Consumption is the method in which people buy and use goods and services for themselves.

Q: ln a hypothetical country, consumption was $3100, exports were 5400, GDP was 55000, imports were…

A: here by using the GDP formula we calculate the Government purchase so the calculation of the…

Q: 5. You are given the following information about an economy: Gross private domestic investment = 40…

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

Q: Following information has been gathered by a Senior Economist about a small country. Based only on…

A: Gross domestic product using expenditure approach is calculated using the formula = Consumption +…

Q: 5. Given the following table RM Million Items 70 Imports Depreciation 50 Exports 08 Dividends 10…

A: i) Net Exports = Exports - Imports Net Exports = 80 - 70 Net Exports = 10 GDP = Consumption +…

Q: 6. For a certain economy, let the following data is measured in million birr Net foreign expenditure…

A: NDP is a net domestic product that is the difference between GDP and depreciation.…

Q: In 2018, the total consumption in the X Country was $22,400 and the total investment activities…

A: Gross Domestic Product (GDP) is termed as the final value of all the services and goods which are…

Q: The following diagram shows select information for an economy made up of three industries for a…

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

Q: Kerer to the information provided in table 4 below to answer the question(s) that follow. Table 4…

A: Answer: (a). GDP=PCE+GP+NPDI+Exports-ImportsWhere,PCE=private consumption expenditureGP=government…

Q: 8. In a given year, a country's GDP = $9841, net factor payments from abroad = $889, taxes = $869,…

A: Private savings=GDP-Taxes-Consumption+Net factor income from abroad+Transfer received from…

Q: B. The table below lists Jamaica's transactions in 2007. Particulars $ Consumers' expenditure 100…

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

Q: 5. You are given the following information about an economy: Gross private domestic investment = 40…

A: Note: Since you have posted a question with multiple subparts, we will solve the first three…

Q: To gauge living standards across countries with populations of different sizes, economists…

A: Various tools are used for calculate the living standard.

Q: Use the following Table to answer Part (a) Assume that Bolivia has the following economic data: GDP…

A: The national income, Y, refers to the total value of all the goods and services produced in an…

Q: 2. Which of the following is a capital good? a. An oven in a bakery. bome computer

A: A capital good is something which is used in order to produce goods or services. They are used as a…

Q: Item Personal consumption Investment Amount (RM millions) 5808 1367 1) The table above gives the…

A: The nations tend to have many entities, such as the households, the firms, businesses, investors,…

Q: 5. Given the following table Items RM Million Imports Depreciation Exports Dividends Government…

A: Since, you have posted a question with multiple subparts we will solve first three parts for you, if…

Q: Given the following data: Gross Investment Expenditure.. .$200 Government Transfer Payments...150…

A: Hey, Thank you for the question. According to our policy we can only answer upto 3 subparts per…

Q: 18. If consumers in the U.S. buy $3.5 billion of clothes made by businesses in Bangladesh, how is…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: CONSUMER SAVINGS & BORROWING NET TAXES GOVERNMENT BORROWING A LENDING INCOMEOS |田| CONSUMERS * © +…

A: The above image shows a circular flow of how an economy operates and the circular flow of income…

Q: Table 25-1 Output Consumption Investment Net Exports 1,000 800 500 100 1,500 1,200 500…

A: Change in inventory can be calculated by using the following formula.

Q: Consider an economy where private businesses/household did not have access to funds. Consider an…

A: The loanable funds market refers to a market place where the savers of the funds and buyers of the…

Q: Define private saving, public saving and national saving. How are they related?

A: Savings is the income which is not spent on the consumption and saved for future consumption.

Q: B. The table below lists Jamaica's transactions in 2007. Particulars Consumers' expenditure 100 000…

A: (i) We know , As per Expenditure Method GDPMP = C + I + G + (X-M)…

Question

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1- Introduction

VIEW

Step 2- Explanation

VIEW

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

The United States exports 14 of GDP while Germany exports about 50 of its GDP. Explain stat that means.
Consider an economy that produces wood, boats, and has a marketing agency.This year domestic wood production generates revenues of $80. Of this $80 worth of wood, $40were purchased by the boat producer and $40 were sold abroad to a foreign company. The woodproducer paid $40 worth of wages and $10 worth of taxes.The boat producer combines the services of the marketing agency, the wood it purchased from thewood producer, and $20 worth of labor (wages) to produce $120 worth of boats. Its revenues,which include a boat produced in the previous year and that was carried as inventory, are $130.Domestic families buy all these boats. This company pays $10 worth of taxes.The marketing agency, whose sole client is the boat company, generates a revenue of $40 whichis enough to cover its labor costs of $40. This company pays no taxes.The government in this economy uses the $20 worth of taxes and builds a port. The cost of theport is $40 that are paid to workers. This port is partially financed by…
Define net exports. Explain how U.S. exports and imports each affect domestic production. Suppose foreigners spend $7 billion on U.S. exports in a specifific year and Americans spend $5 billion on imports from abroad in the same year. What is the amount of the United States’ net exports? Explain how net exports might be a negative amount.
What is export,import rate and net export reflecting in terms of GDP of a country? What it indicates when the value is high or low?
Jacques, a resident of France, goes to Germany to buy a brand-new car for €15,600.00. He then brings the car back to France and sells it to another resident for €17,500.00. Which amount will be included in which country’s GDP, deducted from the net export component of GDP?
You are given the following information about an economy 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) Disposable Income (2) Household Consumption Expenditure
You are given the following information about an economy 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 (iv) Disposable Income (v) Household Consumption Expenditure
You are given the following information about an economy 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: b) Disposible Income
You are given the following information about an economy 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: a) Household Consumption Expenditure
Define net exports and net foreign factor income. What the the difference? How would net foreign factor income affect the national income compared to GDP?
The following figures are from data on Good Island Economy Items $m Net private investment 940 Depreciation 56 Compensation of employees 2 256 Corporate taxes 416 Personal taxes 756 Personal Consumption expenditure 4 386 Government purchases 3 182 Indirect business taxes minus subsidies 482 Payment of factor income to the rest of the world 95 Corporate profits minus dividends 56 Government transfer payments and interest 243 Exports 855 Receipts of factor income from abroad 186 Imports of goods and services 385 Social insurance payments 332 Required: Use the above information to answer the following i.) Calculate for Good Island: Gross private investment Gross Domestic product Gross National Product Net National Product National income Personal Income Disposable Personal Income
Durable goods $3,000 Services 6,000 Business purchases of capital goods 400 Fixed investment 850 Exports 600 Imports 800 Non-durable goods 700 Inventory investment 200 Government transfer payments 100 Purchases of new residential housing 450 Government purchases 900 Refer to Table . Investment is equal to a. $850. b. $200. c. $1,050. d. $1,250.