Question: Use the data below to answer the questions that follow. (10 marks) Item Amount (in billions of dollars) Consumption expenditure 300 Government expenditure 99 Interest

  1. Use the data below to answer the questions that follow.

(10 marks)

Item

Amount

(in billions of dollars)
Consumption expenditure 300
Government expenditure 99
Interest and investment income 31
Profit of corporations and government enterprises 54
Income from farms and unincorporated businesses 40
Gross investment 146
Exports 36
Imports 56
Wages, salaries, and supplementary labour income 275
Capital consumption allowance (depreciation) 50
Indirect taxes, less subsidies 75

  1. Calculate net exports.

(1 mark)

  1. Use the expenditure approach to calculate GDP.

(2.5 marks)

  1. Use the income approach to calculate GDP.

(2.5 marks)

  1. Calculate net domestic product (at factor cost).

(2 marks)

  1. Calculate net domestic income (at market price).

(2 marks)

  1. Consider the circular flow model for Doneville economy. In 2015, flow A was $53.0 billion, flow B was $31.0 billion, flow C was $13.0 billion, and flow E was $3.0 billion.

(10 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

This assignment has a maximum total of 100 marks and is worth 20 percent of your total grade for this course. You should complete it after completing your course work for Units 2 through 4. Answer...

Q:

Economics 248 Assignment 1B This assignment has a maximum total of 100 marks and is worth 20 percent of your total grade for this course. You should complete it after completing your course work for...

Q:

Use the data below to answer the questions that follow. ( Total marks = 12 ) Item Amount (billions of dollars) Consumption expenditure 400 Government purchases 100 Interest and investment income 40...

Q:

Answer each question clearly and concisely. 1. Identify the following as consumption, investment, government purchases, or net exports. Justify your answers. a. Government of Canada repaves the...

Q:

Use the data below to answer the questions that follow Item Amount(billions of dollars) Consumption expenditures 400 Government purchase 100 Interest and investment income. 40 Profit of corporations...

Q:

A south sea island produces only coconuts. In 2015, the price of a coconut is $1.50 and the quantity produced is 250. In 2019, the price of a coconut is $2.00 and the quantity produced is 150. 2015...

Q:

Feel Good Inc. began operations on January 1, 2014, its first year of operations. The company reported a loss for accounting & tax purposes of $100,000 and was virtually certain of realizing the...

Q:

Question 1 Read the case study below and answer the questions that follow: Royal Foods On 1 March 2019 Salvador Doritos became a partner in Royal Foods, a partnership carrying on a catering business....

Q:

The objective of the Homework assignment is to provide an opportunity to apply or practice the tools and techniques covered in the course and to provide an opportunity to articulate key concepts...

Q:

ars ess The Brod Tools the properto entreprise en troductory The better with pore The masse smyyn, omstret In maleng capital structure decision, matargers must manage the following leverage for...

Q:

If an accounting information system were entirely a manual system (no computers used), explain how data would be captured, recorded, classified, summarized, and reported. Discuss how the...

Q:

Use the Gram-Schmidt process to determine an orthonormal basis for the subspace of R* spanned by x, y, and z. -10 1.5 -2 18.5 -5 -9

Q:

Companies report the cash flows from purchases and sales of trading securities as cash flows from operating activities.True False

Q:

Harrison Clothiers stock currently sells for $20 a share. The stock just paid a dividend of $1.00 a share (i.e., D0 = $1.00). The dividend is expected to grow at a constant rate of 10 percent a year....

Q:

An insulated rigid tank initially contains 1.4-kg saturated liquid water and water vapor at 200°C. At this state, 25 percent of the volume is occupied by liquid water and the rest by vapor. Now...

Q:

The Corrigan Corporations forecasted 2005 financial statements follow, along with some industry average ratios. a. Calculate Corrigans 2005 forecasted ratios, compare them with the industry average...

Q:

Calculating Payback what is the payback period for the following set of cash flows? Year Cash Flow -S4,800 1,500 2,600 2,900 4 1,700 3.

Q:

In an oscillating series RLC circuit, show that U/U, the fraction of the energy lost per cycle of oscillation, is given to a close approximation by 2R/w L The quantity w L/R is often called the Q of...

Q:

External Environment for childcare center (Hint: Describe/analyze (only) the components of the external environment that you consider will affect your marketing decision:) CUSTOMERS: MY BUSINESS...

Q:

6. How can hidden knowledge guide our actions?

Q:

7. How can the models we use have a detrimental effect on others?

Q:

2. In this chapter, the reader should reflect on the following concepts: Systemic structuring, the displaced error, the communicable part of knowl-edge, tacit knowledge, hidden knowledge, analogy,...