Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Chapter 24.A, Problem 3DQ
To determine
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Calculate the value of NDPFC if GDPMP is $1200 million, depreciation Is $250 million and the net indirect taxes are $100 million
Suppose, the GDP of a country is 50 million, net factor income from abroad is 20 million and depreciation charges are 10 million. Compute the net national product of the country.
a. NNP = 70 million
b. NNP = 80 million
c. NNP = 60 million
d. NNP = 50 million
Suppose that net national product in 2018 was $50
billion and depreciation was $15 billion. Gross national product in 2018 was:
$35 billion
-$35 billion
$65 billion
$55 billion
Chapter 24 Solutions
Economics: Principles & Policy
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- When we add depreciation to net investment, we arrive at...............arrow_forwardIf gross investment in 2017 is $200 billion and depreciation in 2017 is $1000 billion, net investment in 2017 is?arrow_forwardSuppose GDP is $16 trillion, with $10 trillion coming from consumption, $2 trillion coming from gross investment, $3.5 trillion coming from government expenditures, and $500 billion coming from net exports. Also suppose that across the whole economy, depreciation (consumption of fixed capital) totals $1 trillion. From these figures, we see that net domestic product equals: a. $17.0 trillion. b. $16.0 trillion. c. $15.5 trillion. d. None of the above.arrow_forward
- Depreciation is included in GDP, but excluded from NNP, true or false.arrow_forwardDiscuss the items excluded from the calculation of Grss Domestic Product (GPD) and explain why in four to five paragraphsarrow_forwardFill in the blanks: _______________ ___________ = income received but no goods are produced in exchange. ________________, ____________________, and durable goods are the three categories of Consumption Expenditures. ______________ Domestic Product = GDP minus depreciation.arrow_forward
- Provide a comprehensive definition of the term, Gross National Product.arrow_forwardAl's Aluminum Company sells $1 million worth of aluminum to Shiny Foil Company, which uses the aluminum to make aluminum foil. Shiny Foil Company sells $3 million worth of aluminum foil as a final product to consumers. How much do the transactions just described contribute to the Gross Domestic Product? options: $3 million. $2 million. $4 million. $1 million.arrow_forward#4 Personal Taxes $ 40 Social Security Contributions 15 Taxes on Production and Imports 20 Corporate Income Taxes 40 Transfer Payments 22 U.S. Exports 24 Undistributed Corporate Profits 35 Government Purchases 90 Gross Private Domestic Investment 75 U.S. Imports 22 Personal Consumption Expenditures 250 Consumption of Fixed Capital (depreciation) 25 Net Foreign Factor Income 10 Statistical Discrepancy 0 Refer to the accompanying data (all figures in billions of dollars). NDP is Multiple Choice $402. $370. $392. $467.arrow_forward
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