Ques 4. During 2009, flow A was $13.0 trillion, flow B

was $9.1 trillion, flow D was $3.3 trillion, and

flow E was -$0.8 trillion.Calculate the 2009 values of

a. GDP.

b. Government expenditure.

7. A U.S. market research firm deconstructed an

Apple iPod and studied the manufacturers, costs,

and profits of each of the parts and components.

The final results are

An Apple iPod sells in the United States for

$299.

A Japanese firm, Toshiba, makes the hard disk

and display screen, which cost $93.

Other components produced in South Korea

cost $25.

Other components produced in the United

States cost $21.

The iPod is assembled in China at a cost of $5.

The costs and profits of retailers, advertisers,

and transportation firms in the United States

are $75.

a. What is Apple's profit?

b. Where in the national income and product

accounts of the United States, Japan, South

Korea, and China are these transactions

recorded.

c. What contribution does one iPod make to

world GDP?

11. Calculate net domestic income at factor cost

and the statistical discrepancy.

Use the following data to work Problems 12

and 13.

Tropical Republic produces only bananas and

coconuts. The base year is 2008, and the table gives

the quantities produced and the prices.

Quantities 2008 2009

Bananas 800 bunches 900 bunches

Coconuts 400 bunches 500 bunches

Prices 2008 2009

Bananas $2 a bunch $4 a bunch

Coconuts $10 a bunch $5 a bunch

12. Calculate nominal GDP in 2008 and 2009.

13. Calculate real GDP in 2009 expressed in base year

prices.