ECON 162 Lecture Notes - Lecture 5: Genuine Progress Indicator, Environmental Health
ECON 162-A12, A2 Kenny Christianson
Fall 2015 due: October 23
PROBLEM SET NUMBER FIVE
1. Suppose that you are given the following data for the country of Barackville:
consumption 11,800 net factor income from abroad 300
wages 9,300 interest payments 1,700
investment 2,900 capital consumption allowance 2,800
exports 2,300 government spending on goods 3,200
imports 2,900 and services
profits 3,400 rental payments 600
From the data provided, find
a. GDP using the expenditure approach.
GDP = C + I + G + (X-M)
GDP = 11,800 + 2,900 + 3,200 + (2,300-2,900)
GDP = 17,300
b. GNP and NNP.
GNP = GDP + NFIA
GNP = 17,300 + 300
GNP = 17,600
NNP = GNP - CCA
NNP = 17,300 - 2,800
NNP = 14,500
c. NI using the income approach.
NI = W + i + R + profits
NI = 9,300 + 17,000 + 600 + 3,400
NI = 15,000
d. statistical discrepancy.
SD = (GDP + NFIA - CCA) - (W + i + R + profits)
SD = (17,300 + 300 - 2,800) - (9,300 + 1,700 + 600 + 3,400)
SD = 14,800 - 15,000
SD = -200
(HINT: Barackville is similar to the US economy for 2014, in billions of dollars.)
2. Assume that the economy of Stockland produces four goods, rocks, socks, blocks, and
clocks. Rocks and blocks are both used as weapons; they are good substitutes for each
other. The quantities and prices for each of the goods in years one and two are given by
the following table:
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Problem set number five: suppose that you are given the following data for the country of barackville: consumption wages investment exports imports profits. 3,400 net factor income from abroad interest payments capital consumption allowance government spending on goods and services rental payments. 600: gnp and nnp, gdp using the expenditure approach. Gdp = c + i + g + (x-m) Gdp = 11,800 + 2,900 + 3,200 + (2,300-2,900) Ni = w + i + r + profits. Sd = (gdp + nfia - cca) - (w + i + r + profits) Sd = (17,300 + 300 - 2,800) - (9,300 + 1,700 + 600 + 3,400) Sd = -200: ni using the income approach, statistical discrepancy. (hint: barackville is similar to the us economy for 2014, in billions of dollars. , assume that the economy of stockland produces four goods, rocks, socks, blocks, and clocks.
