EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 25, Problem 2RQ
To determine
Components of GDP .
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The table below includes data for a one-year period required to calculate GDP from
the income side for a teeny-tiny economy.
Gross investment
expenditure
Wages and salaries
Consumption
expenditure
Interest and investment
income
Business profits
Depreciation
Indirect taxes less
subsidies
Net exports
TABLE 5-4
$402.00
$1741.00
$1711.60
$1811.40
$1910.80
$1840.40
O $2004.80
$1302.40
$99.40
$70.40
$199.20
$175.20
$94.00
Refer to Table 5-4. What is the value of net domestic income at factor cost?
Refer to the Table. Assume that this economy produces only two
goods Good X and Good Y. The value for this economy's nominal
GDP in year 3 is
Year 1
Good X 60
Good Y 100
OA) $204.
OB) $222.
OC) $250.
OD) $270.
Production
Year 2
80
110
Year 3
100
130
Year 1
$1.00
$0.80
Prices
Year 2
$1.00
$0.90
Year 3
$1.40
$1.00
1.
dix
Suppose the country produces only two goods: beef and wheat. The table
below summarizes the quantities of each good produced and the
corresponding prices in every year since 2005:
Beef Wheat
Nomin
al
PQP Q GDP
2005 $4 12 $1. 22
0
6
0
11 $1.
23
4
0
15
$1.
24
5 9 5
2007
2006 $4.
5
$4.
6
LO
5
LO
Real
GDP
(in
2006
price
s)
GDP
Deflat
or
Inflation
Rate
(using
GDP
Deflator)
CP
I
Inflation
Rate
(using
CPI)
Chapter 25 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 25 - Prob. 1DQCh. 25 - Prob. 2DQCh. 25 - Prob. 3DQCh. 25 - Prob. 4DQCh. 25 - Prob. 5DQCh. 25 - Prob. 6DQCh. 25 - Prob. 7DQCh. 25 - Prob. 8DQCh. 25 - Prob. 9DQCh. 25 - Prob. 10DQ
Ch. 25 - Prob. 11DQCh. 25 - Prob. 12DQCh. 25 - Prob. 13DQCh. 25 - Prob. 1RQCh. 25 - Prob. 2RQCh. 25 - Prob. 3RQCh. 25 - Prob. 4RQCh. 25 - Prob. 5RQCh. 25 - Prob. 6RQCh. 25 - Prob. 7RQCh. 25 - Prob. 8RQCh. 25 - Prob. 9RQCh. 25 - Prob. 1PCh. 25 - Prob. 2PCh. 25 - Prob. 3PCh. 25 - Prob. 4PCh. 25 - Prob. 5PCh. 25 - Prob. 6PCh. 25 - Prob. 7PCh. 25 - Prob. 8P
Knowledge Booster
Similar questions
- In a small economy, consumption spending is $7,500, government purchases are $2,200, gross investment is $500, exports are $2,100, and imports are $3,000. What is gross domestic product? $9,300 O $15,300 O $11,100 O $12,300arrow_forwardTime left 1:52:43 Item € (billion) 10 12 13 Government purchases of goods and services 250 19 22 Compensation of employees 1,675 Gross investment 325 Finish attempt.. Rental income 20 1425 Consumption expenditures Net interest 40 Net exports of goods and 100 services Indirect business taxes and 300 depreciation The above table shows some (but not all) national income accounting data for a hypothetical country. According to these data, the value of GDP is billion. O €1,850. O €2,100. O €2,000. O €2,050. 21 11 20arrow_forwardA country's GDP is being measured by the expenditure method. Various categories of expenditure are recorded as follows (in billions of dollars): households' spending on consumption firms spending on capital goods firms' additions to inventories govemment spending on services government spending on capital goods government transfers (e.g., Social Security) value of exports value of imports 100 15 O$143 billion O$135 billion O$123 billion $167 billion None of the other answers are correct. 1 10 2 20 7 12 [If the image above doesn't appear click here to open it in a new tab.] What is the correct estimate of GDP?arrow_forward
- Related to the Economics in Practice on p. 107: The value of the used goods sold on eBay from a U.S. seller to a U.S. buyer is Select one: O a. not counted in either U.S. GDP or GNP. Ob. counted in U.S. GNP but not GDP. O c. counted in both U.S. GDP and GNP. O d. counted in U.S. GDP but not GNP.arrow_forwardThe following table shows the goods produced in 2020 and 2023. Use this table to answer the following question. Shirts Shoes Hats O $18,500 O $29,250 O $33,700 $25,500 Price ($) 50 90 2020 35 Quantity 100 What is the nominal GDP of 2023? 150 200 Price ($) 60 110 30 2023 Quantity 120 200 150arrow_forwardQuestion 1 1 points Save Answer A company produced 8 dishwasher machines in 2015. The company sold 6 to households in 2015 and added 2 to its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the value of this company's output that will be included O $400 O $1,400 O $1,600 O $2,000 the 2015 GDP?arrow_forward
- Table 7-3 (in $ billion) consumption = $1,000.00 inventory investment $450.00 purchased of new capital goods $550.00 government purchases $300.00 exports = $20.00 imports = $33.00 purchased of new residential housing $58.00 Refer to Table 7-3, GDP equals O $2.345.00 O $2.346.00 O $2,325.00 O $1,925.00arrow_forwardConsider two cars manufactured by Chevrolet in 2017. During 2017, Chevrolet sells one of the two cars to Emily for $20,000. Later in the same year, Emily sells the car to Jim for $18,000. The second automobile, with a market value of $19,000, is unsold at the end of 2017 and it remains in Chevrolet's inventory. The transactions just described contribute how much to GDP for 2017? O $39,000 O $20,000 $37,000 O $19,000arrow_forwardWhich one of the following has to be taken into account when GDP is estimated? O A. John purchases shares to the value of R150 000 in Anglo American plc. O B. Peter invests in a 24-month tax-free fixed deposit. O C. A firm buys Mpho, its sales representative, a new car. O D. Patrick, a university student, buys an old car from a friend. O E. Anne, a civil pensioner, receives her monthly pension from the government.arrow_forward
- If Ralph pays someone to mow his lawn and Norton mows his own lawn, what is the impact on GDP? O a. Neither what Ralph pays nor the estimated value of Norton's mowing is included in GDP. b. The answer depends on what Norton reports to survey takers. What Ralph pays to have his lawn mowed and the estimated value to Norton of mowing his own lawn are both included in GDP. O d. Only what Ralph pays to have his lawn mowed is included in GDP.arrow_forwardA farmer sells $150,000 of apples to individuals who take them home to eat and $75,000 of apples to a company that uses them all to produce cider. How much of the farmer's sales will be included as apples in GDP? * O $150,000 O $160,000 O $170,000 O $120,000arrow_forwardTime left 0:56:2 During 2009, the leather company produced enough leather for 20 couches. The couch manufacturing company bought 80% of that leather for $16,000 and promised to buy the remaining 20% for $4,000 in 2010. The couch manufacturing company produced 16 couches during 2009 and sold each one during that year for $3,000. What was the contribution to GDP for 2009? Select one: O a. $48,000 O b. $52,000 O c. $64,000 O d.. $68,000 Next page page on this pagearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education