ECO306 MidtermExam Paper Final Solution
Xi’an Jiaotong-Liverpool University
PAPER CODE
EXAMINER
DEPARTMENT
TEL
ECO306
Ron Schramm
IBSS
7129
2nd SEMESTER 2013/14 Midterm Examination
Programme Title
Bachelor’s Economics
Financial Economics
TIME ALLOWED: 1 hour
INSTRUCTIONS TO CANDIDATES
1、
This is a closed-book examination, which is to be written without books, tapes, or notes. 2、
Total marks available are 100.
3、
Answer 3 out of 4 questions.
4、
Answer should be written in the answer sheet(s) and/or booklet(s) provided. Only
English solutions are accepted.
5、
The university approved calculator - Casio FS82ES/83ES can be used.
6、
All materials must be returned to the exam supervisor upon completion of the exam.
Failure to do so will be deemed academic misconduct and will be dealt with accordingly. PAPER CODE: Module code/13-14/S2/Midterm Exam
Page 1 of 4
Xi’an Jiaotong-Liverpool University
Please answer only 3 questions.
Each question is worth 33
points.
1.
In the Table at the end of the examination (mind the footnote):
a. Calculate GDP and GNP based on a method used primarily in China.
Identify the method.
(16.5 pts)
GDP= 2.84
= Value Added CMM + Value Added Outside Suppliers
2.84 = 1.44 + 1.4 = Value Added GDP
2.84 - .5 x (.42+.20) = 2.53 = Value Added GNP
b. Calculate GDP and GNP based on a method used primarily in the United States. Identify the method. (16.5 pts)
•
Solution: GDP = 2.98 - .14 or
Final Sales – Change in Inventories = 2.84
GNP = GDP – Net Factor Payments = 2.84 – Gross Dividends to US = 2.84 - .5 x (.42 + .20) =2.53 or Expenditure Approach Y = C + I + G + (X-M) CMM only does I and X
2.98- .14 = 2.80 “I“ + .04 “X”
2. In the Table at the end of the examination:
a. Explain the classical relationship between other stakeholders and shareholders in a capitalist system. (16.5 pts).
Solution:
Shareholders are the last ones in line to receive benefits – in a competitive market
they make sure that the stakeholders above them are satisified in an “efficient”
PAPER CODE
EXAMINER
DEPARTMENT
TEL
ECO306
Ron Schramm
IBSS
7129
2nd SEMESTER 2013/14 Midterm Examination
Programme Title
Bachelor’s Economics
Financial Economics
TIME ALLOWED: 1 hour
INSTRUCTIONS TO CANDIDATES
1、
This is a closed-book examination, which is to be written without books, tapes, or notes. 2、
Total marks available are 100.
3、
Answer 3 out of 4 questions.
4、
Answer should be written in the answer sheet(s) and/or booklet(s) provided. Only
English solutions are accepted.
5、
The university approved calculator - Casio FS82ES/83ES can be used.
6、
All materials must be returned to the exam supervisor upon completion of the exam.
Failure to do so will be deemed academic misconduct and will be dealt with accordingly. PAPER CODE: Module code/13-14/S2/Midterm Exam
Page 1 of 4
Xi’an Jiaotong-Liverpool University
Please answer only 3 questions.
Each question is worth 33
points.
1.
In the Table at the end of the examination (mind the footnote):
a. Calculate GDP and GNP based on a method used primarily in China.
Identify the method.
(16.5 pts)
GDP= 2.84
= Value Added CMM + Value Added Outside Suppliers
2.84 = 1.44 + 1.4 = Value Added GDP
2.84 - .5 x (.42+.20) = 2.53 = Value Added GNP
b. Calculate GDP and GNP based on a method used primarily in the United States. Identify the method. (16.5 pts)
•
Solution: GDP = 2.98 - .14 or
Final Sales – Change in Inventories = 2.84
GNP = GDP – Net Factor Payments = 2.84 – Gross Dividends to US = 2.84 - .5 x (.42 + .20) =2.53 or Expenditure Approach Y = C + I + G + (X-M) CMM only does I and X
2.98- .14 = 2.80 “I“ + .04 “X”
2. In the Table at the end of the examination:
a. Explain the classical relationship between other stakeholders and shareholders in a capitalist system. (16.5 pts).
Solution:
Shareholders are the last ones in line to receive benefits – in a competitive market
they make sure that the stakeholders above them are satisified in an “efficient”