Bundle: Exploring Macroeconomics, Loose-leaf Version, 7th + LMS Integrated MindTap Economics, 1 term (6 months) Printed Access Card
7th Edition
ISBN: 9781305784802
Author: Robert L. Sexton
Publisher: Cengage Learning
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Chapter 11, Problem 8P
To determine
(a)
To explain:
The way Gross National Product should be compared of to
To determine
(b)
To explain:
The comparison of Gross National Product to Gross Domestic Product when earnings of foreigners and foreign firms in the United States exceeds the earnings of American citizens and firms overseas.
To determine
(c)
To explain:
The comparison of Gross National Product to Gross Domestic Product when earnings of foreigners and foreign firms in the United States are less than the earnings of American citizens and firms overseas.
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I. The sale of a house from an existing homeowner to an
incoming homeowner in a subdivision is included in the
computation of GDP
II. The purchase of stocks and bonds is not included in the
computation of GDP
III. Broker's commissions for the sale of financial
instruments is included in the computation of GDP
IV. The lawyer's fees to facilitate the transfer of title of an
existing house from one homeowner to another is
included in the computation of GDP
O Only Statement Il is false
O Only Statement I is false
All Statements are false
Only Statements III and IV are true
O All Statements are true
Which of the following transactions or activities would be counted in your country’s GDP? Explain your answers.
A transportation company acquires a fleet of second-hand vehicles.
The same transportation company acquires 1.000 gallons of gas from a foreign company deducted from the net export component of GDP.
You buy 10 short-term government bonds.
A mining company acquires new government licenses to drill in land the company already owns.
You pay for a new haircut at your local hairdresser.
Foreign residents buy a bundle of your country’s food specialties on an online retail site.
Your parents spend a whole day cooking meals to be handed out to their poorer neighbors.
The local government acquires furniture for newly built schools.
Two telecommunications companies merge.
A non-profit organization buys an apartment to lodge their headquarters.
Which of the following would be captured and included in the calculation of GDP?
A) The cost of hospital stays.
The rise in life expectancy over time.
(C) Child care provided by a licensed day care center.
Child care provided by a grandmother at home.
A used car sale to the Brown family.
A new car sale to the Brown family.
(G) The greater variety of cheese available in supermarkets.
The iron that goes into the steel that goes into a refrigerator bought by the Brown family.
Chapter 11 Solutions
Bundle: Exploring Macroeconomics, Loose-leaf Version, 7th + LMS Integrated MindTap Economics, 1 term (6 months) Printed Access Card
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