Sub-Part
A
The reason for considering Population levels, when GDP data are used to compare the well being in different countries.
Concept Introduction:
B
The reason for considering the distribution of income, when GDP data are used to compare the well being in different countries.
Concept Introduction:
Gross Domestic Product (GDP): It is the money value of final goods and services produced in a year.
C
The reason for considering the amount of production that takes place outside of markets, when GDP data are used to compare the well being in different countries.
Concept Introduction:
Gross Domestic Product (GDP): It is the money value of final goods and services produced in a year.
D
The reason for considering the length of the average workweek, when GDP data are used to compare the well being in different countries.
Concept Introduction:
Gross Domestic Product (GDP): It is the money value of final goods and services produced in a year.
E
The reason for considering the level of environmental pollution, when GDP data are used to compare the well being in different countries.
Concept Introduction:
Gross Domestic Product (GDP): It is the money value of final goods and services produced in a year.
Trending nowThis is a popular solution!
- 5 GDP tends to overstate economic welfare, because it does not include certain nonmarket activities such as home production. understate economic welfare, because it includes expenditures undertaken to offset or correct pollution. understate economic welfare, because it does not take into account increases in leisure. overstate economic welfare, because it does not reflect improvements in product quality.arrow_forwardFor her statement of income, Maricela indicates the following amounts for the present year: $80,000 from employment, $2,000 interest from bank accounts, and $25,000 profits and dividends. Of this income, she has spent $50,000 on food and other consumption goods, $20,000 on vacations abroad, saved $10,000 in her retirement account, spent $20,000 on purchasing extra shares and $10,000 on new computers for her business. a) Define the term Gross Domestic Product (GDP). b) What was the increase in GDP generated by Maricela's activity? c) What are her certain contributions to consumption, investment, and net exports?d) What is the value of production that was newly created by Maricela's productive activity?arrow_forward1. Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars): Item Amount ($) Government purchase of goods and services 1,721.6 Exports 1,096.3 Receipts of factor income from the rest of the world 382.7 Depreciation (consumption of fixed capital) 990.8 Net fixed investments 688.2 Corporate income taxes 265.2 Consumption expenditures 6,739.4 Indirect business taxes 664.6 Imports 1,475.8 Payments of factor income to the rest of the world 343.7 Inventory change 56.5 Social security contributions 702.7 Undistributed corporate profits (retained earnings) 130.3 Government transfer and interest payments 1,366.3 Personal interest payments 286.2 Personal taxes 1,235.7arrow_forward
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning