W Y. L K M N. Refer to Figure 23-1. Which of the following pairs correctly identify W and Y? a. Consumption and investment b. Markets for factors of production and markets for goods and services Dc. Firms and households d. Expenditures and income
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Q: Q5 a: Analyze how much Pakistan’s GDP and each of its components is affected by the following…
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A: As given in question:-
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- One of the following best explains consumption spending Select one: a. Spending on final consumer goods b. Spending on capital goods c. None of the option are correct d. Spending on infrastructureQ5 b: Analyze how much Pakistan’s GDP and each of its components is affected by the following transactions? Explain your answers (Maximum 200 words). i) Toyota Motors issues new shares to finance the construction of an automobile plant in Pakistan. ii) Your friend wins Rs.2 million in the lottery in Dubai iii) Rabia spends Rs.1500 to buy her husband dinner at the finest restaurant in Karachi iv) General Motors builds Rs.40 million worth of cars, but consumers only buy Rs. 38 million worth of them. v) Sadia spends 50000 on a computer to use in her editing business in Karachi. She got last year’s model on sale for a great price from a local manufacturer. (Sub parts to solved).The table given below reports the value of different economic variables of a country during a year.Table 5.4 GNP Data(Adjusted for net factor income from abroad) Net Investment $400 Capital Consumption Allowance $800 Indirect Business Taxes $600 U.S. Exports $200 U.S. Imports $300 Government Purchases $150 Consumption Spending $2,030 Refer to Table 5.4. What will be the value of gross investment? Group of answer choices $1,000 $1,200 $400 $1,800 Indeterminate
- A. Which expenditure category do each of the following items count in? Group of answer choices - (consumption, none, government spending, investment, net exports) you spend your tax refund on a new car built in America? the government builds a new school? you sell a used textbook to your friend? Company X buys solar panels built in China? B.Which of the following is an example of a durable good? Group of answer choices gasoline a television an ice cream cone a pair of socksQ5 a: Analyze how much Pakistan’s GDP and each of its components is affected by the following transactions? Explain your answers (Maximum 200 words). i) Toyota Motors issues new shares to finance the construction of an automobile plant in Pakistan. ii) Your friend wins Rs.2 million in the lottery in Dubai iii) Rabia spends Rs.1500 to buy her husband dinner at the finest restaurant in Karachi iv) General Motors builds Rs.40 million worth of cars, but consumers only buy Rs. 38 million worth of them. v) Sadia spends 50000 on a computer to use in her editing business in Karachi. She got last year’s model on sale for a great price from a local manufacturer. (Sub parts to solved).In the context of the circular flow model of the economy, which of the following best describes the relationshipbetween households, businesses, and the government?A. Households earn income by buying goods and services in the product market, spend that incomeon businesses, and pay taxes to the government, which then uses the revenue to provideresources.B. Households earn income by providing resources, spend that income on goods and services in theproduct market, and pay taxes to the government, which then uses the revenue for public services.C. Households earn income by paying taxes to the government, which then uses that revenue to buygoods and services from businesses, and businesses use the income to pay wages to households.D. Households earn income by providing resources to the government, which then redistributes thatincome among businesses to stimulate production and spending.
- Assume that in country ABC: Consumption expenditure C = 70Gross Investment expenditure IG = 20Government expenditure on goods & services G = 10Exports X = 15Imports Z = 10How much is its GDP?Suppose that in the country of Economia: Net Investment = $20 billion, Depreciation = $70b, Net Exports = $30b, Taxes = $90b, Government Expenditure = $60b, Imports = $70b, Consumption = $120b. What does GDP equal in Economia? Select one: a. $300 billion b. $270 billion c. $250 billion d. $230 billion e. $210 billionFrom the table below answer, the following questions in the spaces provided, consider the following data (in billion $) for a country in a particular year: (Personal consumption expenditure (C 1000 (Exports (x 120 (Government Purchases of goods and services (G 400 (Imports (m 110 Gross Domestic Product (Y) 4,500 (Taxes (T 200 5) What is the value of gross investment (I)? Answer 6) What is the amount of investment financed by national savings? Answer 7) What is the amount of investment financed by borrowing from or lending to the rest of the world? Answer
- Classify the type of expenditure in the following transactions. Tuition paid by your parents is _______. A new office building is _______. A. consumption expenditure; consumption expenditure B. investment; investment C. government expenditure; investment D. consumption expenditure; investmentCategory Expenditures (billions of dollars) Fixed business investment $2,950.00 Durable goods $2,300.00 Exports $700.00 Federal government purchases $1,250.00 New home construction $1,300.00 Imports $840.00 Change in inventories $-200.00 Nondurable goods $4,800.00 Services $9,450.00 State and local government purchases $2,100.00 Use the information in the table to calculate the following:(a) Consumption: $ billion(b) Investment: $ billion(c) Government: $ billion(d) Net exports: $ billion(e) GDP: $ billionQUESTION TWOSuppose that the economy of Mwaliteta Republic has the following data for some economic variables. Assume that Mwaliteta Republic has a population of 500,000 people.Variable Amount in million ZMWExpenditure on Non-durable goods 98Non-residential fixed investment 79Central government expenditure 60Local government expenditure 82Expenditure on durable goods 82Expenditure on services 99Export expenditure 60Inventory Investment 5Depreciation 4Property income from abroad 12Indirect taxes 12Residential fixed investment 42Personal income tax…