You are given the following information about an economy: Smillions GDP at Market Prices 1,,669.4 Imports Gross Domestic Capital Formation Income accruing to the Public Sector Retained Business Earnings 290.5 48.7 39.0 75.9 Exports 273.4 Subsidies 16.8 Factor Payments from Abroad Capital Consumption Allowance Income Payments to Foreigners 10.0 10.5 19.2 Direct Taxes 355.6 Public Sector Consumption Expenditure 490.1 Indirect Taxes 297.3 Transfer Payments 25.7 Derive the following: (i) (ii) (iii) (iv) (v) National Income Net Investment Personal Income Disposable Income Household Consumption Expenditure

You are given the following information about an economy: Smillions GDP at Market Prices 1,,669.4 Imports Gross Domestic Capital Formation Income accruing to the Public Sector Retained Business Earnings 290.5 48.7 39.0 75.9 Exports 273.4 Subsidies 16.8 Factor Payments from Abroad Capital Consumption Allowance Income Payments to Foreigners 10.0 10.5 19.2 Direct Taxes 355.6 Public Sector Consumption Expenditure 490.1 Indirect Taxes 297.3 Transfer Payments 25.7 Derive the following: (i) (ii) (iii) (iv) (v) National Income Net Investment Personal Income Disposable Income Household Consumption Expenditure

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 6SCQ: Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram...

See similar textbooks

Similar questions

Price differences in “similar” products in different countries often exist. What canexplain those differences?
Suppose Egypt wants to open its trade borders tothe world market for natural gas. What will determine whether Egypt becomes a net-exporter ornet-importer of natural gas? If Egypt becomes anet-exporter, will domestic supply be equal to, lessthan, or greater than domestic demand?
1. Notice how U.S. imports rose at roughly the same rate asthose of other countries until the 1970s. What accounts forthe acceleration of U.S. imports thereafter? 2. China’s exports rose spectacularly after the 1990s. Germanyincreased its exports in this period dramatically as well. Whatevidence do you see here for increasing competition for theUnited States in a globalizing economy?
Which of the following represents the domestic demand for goods? OC+I+G - IM/ɛ OC+I+ G+ X + ɛIM OC+I+G + X OC+I+G + X- ɛM/ɛ %3D OC+I+ G
The United States exports14%ofGDP while Germany exports about 50% of it sGDP.Explain wha ttha tmeans.
Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram onto a sheet of paper and then add a foreign county as a third agent. Draw a rough sketch of the flows of imports, exports, and the payment for each on your diagram.
Consider two neighboring island countries called Felicidad and Bellissima. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Jeans Corn Country (Pairs per hour of labor) (Bushels per hour of labor) Felicidad 4 16 Bellissima 12 Initially, suppose Bellissima uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce corn, while Felicidad uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce corn. Consequently, Felicidad produces 12 million pairs of jeans and 16 million bushels of corn, and Bellissima produces 6 million pairs of jeans and 36 million bushels of corn. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and corn it…
BTU, draw a diagram to illustrate how the develop- c. As a percent of total exports, rank the states in orda b. Calculate the growth in exports from 2002 to 2012 156 I PART 2 SUPPLY AND DEMAND C. Assuming natural gas prices in Europe are $6.00 per BTU, draw a diagram to illustrate how the develop- ment of a natural gas terminal in the United States will affect supply and demand in the natural gas market for Europe. Explain your findings. d. How will the exporting of natural gas from the United States to Europe affect consumers and pro0- ducers in both places? Note that most of the natural gas in Europe originates from Russia's state-owned natural gas company, Gazprom. Access the Discovering Data exercise for Chapter 5 online to answer the following 3. questions. a. Rank the states in order of exports to China. Rank in order of most to fewest exports. for each state. of most to least exports to Chino
0 %24 A country in autarky would consume at a point its PPF, while a country that engages in trade would consume at a point its PPF. on; to the left of O to the left of; on to the left of; to the right of O on; to the right of Unit 7- Chapter 1..xlsx Unit 7- Chapter 1.xlsx O Topic 2 (2).docx O Topic 2 (1).docx 11:08 PM 73°F O prt sc home end delete 61 144 backspace -> lock 6. 7. 5. enter H. pause * shift alt ctri
The table below shows the export and import values of automobiles, pharmaceuticals, and clothing in Country A and Country B. Country A Automobiles Pharmaceuticals Clothing Country B Automobiles Pharmaceuticals Clothing The IIT share is zero for Multiple Choice Exports ($Billions) 20 30 40 Exports ($Billions) 0 40 45 O clothing: automobiles in Country A and for Imports ($Billions) 40 30 0 automobiles; pharmaceuticals Imports ($Billions) 20 40 35 Opharmaceuticals; pharmaceuticals clothing: pharmaceuticals in Country B.
Consider a small country that exports steel. Supposethat a “pro-trade” government decides to subsidizethe export of steel by paying a certain amount foreach ton sold abroad. How does this export subsidyaffect the domestic price of steel, the quantity ofsteel produced, the quantity of steel consumed, andthe quantity of steel exported? How does it affectconsumer surplus, producer surplus, governmentrevenue, and total surplus? Is it a good policy fromthe standpoint of economic efficiency? (Hint: Theanalysis of an export subsidy is similar to the analysisof a tariff.)
The domestic price of a product is $3 per unit whereas the price of the imported product is $2. The governmen of. OA. specific prohibitive tariff OB. specific revenue tariff OC. ad valorem prohibitive tariff OD. ad valorem revenue tariff Reset Selection