MindTap Economics, 1 Term (6 Months) Printed Access Card for Mceachern's ECON MACRO, 6th
6th Edition
ISBN: 9781337915595
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 6, Problem 7P
Sub-Part
A
To determine
The reason for considering Population levels, when GDP data are used to compare the well being in different countries.
Concept Introduction:
B
To determine
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
To determine
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
To determine
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
To determine
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.
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QUESTION 2
Refer to the accompanying national income data (in billions of dollars) and answer the following questions. (Show your calculations)
$1,593
1,113
1,683
695
Gross Private Domestic Investment
Personal Taxes
Transfer Payments
Taxes on Production and Imports
Corporate Income Taxes
Personal Consumption Expenditures
Consumption of Fixed Capital
US Exports
213
7,304
1,383
1,059
434
Dividends
1,973
Government Purchases
10
Net Foreign Factor Income
Undistributed Corporate Profits
Social Security Contributions
US Imports
Statistical Discrepancy
141
748
1,483
50
a. Calculate Net Exports. Does the country face a frad
teficit or surplus or neither?
b. Calculate the Gross Domestic Product (GDP)
c. Calculate the National Income (NI).E
d. Calculate Corporate Profits.
e. Calculate the Net private domestic investment.
12
1. Calculate GDP using the expenditures approach for year 1 and year 2. Explain your rationale with
numbers. In other words, you must show the following;
▪ What is Personal Consumption Expenditures in year 1 and 2
▪ What is Gross Private Domestic Investment in year 1 and 2
▪ What is Government Purchases of Goods and Services in year 1 and year 2
What is Net Exports in year 1 and year 2
▪ What is GDP in year 1 and year 2
2. In percentage terms, which of the 4 categories of spending changed more from year 1 to year 2. In
other words, looking at the results from year 2, which of the categories experienced the highest
percentage change. Explain your rationale with numbers.
3. What was the percentage change in GDP? Explain your rationale with numbers. Use 2 decimal points.
4.
In your own words, explain why GDP is such an important metric that is used to understand the
economic performance of nations. How does looking at GDP per capita help when comparing
economic performance of different…
Chapter 6 Solutions
MindTap Economics, 1 Term (6 Months) Printed Access Card for Mceachern's ECON MACRO, 6th
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- (a) Use either the expenditure approach or the income approach to calculate the following national income statistics based on the data given in Table 1. (5 marks) Calculate the net national product (NNP)arrow_forward4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2010, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Data (Billions of dollars) Consumption (C) 10,215.7 Investment (I) 1,737.3 Exports (X) 1,844.4 Imports (M) 2,356.1 Net Exports of Goods and Services Government Purchases (G) 3,057.5 Gross Domestic Product (GDP)arrow_forward(Table: Calculating GDP) Using the information in the table Calculating GDP, which is the correct calculation for GDP? A) $34,085 B) $47,475 C) $12,200 D) $21,485arrow_forward
- Table 36-2 Domestic GDP Expenditure Exports Imports Total Expenditures (Y) C + I + G (X) (IM) C + I + G + (X − IM) $2,500 $3,100 $650 $250 _____ 3,000 3,400 650 300 _____ 3,500 3,700 650 350 _____ 4,000 4,000 650 400 _____ 4,500 4,300 650 450 _____ 5,000 4,600 650 500 _____ 5,500 4,900 650 550 _____ From Table 36-2, what can you conclude about net exports as GDP rises? a. Net exports fall as GDP rises. b. Net exports rise as GDP rises. c. Net exports are constant as GDP rises. d. Net exports rise and then fall as GDP rises.arrow_forwardTable 36-2 Domestic GDP Expenditure Exports Imports Total Expenditures (Y) C + I + G (X) (IM) C + I + G + (X − IM) $2,500 $3,100 $650 $250 _____ 3,000 3,400 650 300 _____ 3,500 3,700 650 350 _____ 4,000 4,000 650 400 _____ 4,500 4,300 650 450 _____ 5,000 4,600 650 500 _____ 5,500 4,900 650 550 _____ In Table 36-2, what are net exports when GDP = 3,500? a. 300 b. 400 c. 100 d. 200arrow_forward(Table) Suppose a loaf of bread goes through the following stages of production, with the values noted at the end of each stage. Stage 1. Farmer's wheat 2. Miller's flour Value $0.65 $1.20 $1.80 $2.65 3. Baker's bread 4. Grocer's bread The sale of one loaf of bread adds to GDP. $6.30 $2.65 $5.65 $4.45arrow_forward
- Type answer pleasearrow_forwardNational income accounting for a certain country in the year for 2020 is given in Table 2. Based on the table, answer the following questions. Amount in $ (million) 180 8,120 3,800 1,320 4,230 12,000 10,120 12,100 8,000 3,120 3,240 Items Net factor income Consumption expenditure Public investments Import Export Government expenditure Wages Interest, rent and profit Indirect taxes Subsidies Depreciation a) By using expenditure approach, calculate Gross Domestic Product (GDP) at market price. b) By using income approach, calculate Gross Domestic Product 9GDP) at market price. c) Based on your understanding on Gross Domestic Product (GDP), explain why do you think that GDP Ís important, and what is the limitation of GDP?arrow_forwardAs soon as possible.thank youarrow_forward
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