The calculation of a country's GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted). Explain how each of the following items are treated in the computation of GDP for 2020. Interest on treasury issued by the Bank of Ghana Social security payments paid to retired employees in Ghana You assisted your parents to weed your family backyard The property income received by a hauler The money received by Martha when she sold her mother’s old blender The monthly allowance a student receives from scholarship secretariat The money received by Matthew Amoako when he bought Afia’s laptop The value of working in progress is $2 billion Asamoah withdraw GHC 5m from his bank accounts to purchase of 1000 shares of GCB Bank stock To protect his employees from the risk of contracting the COVID 19, the president of AIT purchased insurance policy for his employees A monthly scholarship check received by AIT students The purchase of a lift by AIT The cashing in of a savings bond The services of a mechanic in fixing the radiator in his own car LEAPS cheques received by an aged person in Ghana Government of Ghana purchase of ammunitions

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 2P: Which of the following are included in GDP calculations? a. Cleaning services performed by Molly...

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The calculation of a country's GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted). Explain how each of the following items are treated in the computation of GDP for 2020.

Interest on treasury issued by the Bank of Ghana
Social security payments paid to retired employees in Ghana

You assisted your parents to weed your family backyard

The property income received by a hauler
The money received by Martha when she sold her mother’s old blender
The monthly allowance a student receives from scholarship secretariat

The money received by Matthew Amoako when he bought Afia’s laptop
The value of working in progress is $2 billion

Asamoah withdraw GHC 5m from his bank accounts to purchase of

1000 shares of GCB Bank stock

To protect his employees from the risk of contracting the COVID 19, the president of AIT purchased insurance policy for his employees
A monthly scholarship check received by AIT students

The purchase of a lift by AIT
The cashing in of a savings bond
The services of a mechanic in fixing the radiator in his own car

LEAPS cheques received by an aged person in Ghana

Government of Ghana purchase of ammunitions

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

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