factor cost. GNP = 5‚ 00‚000 Crs. Depreciation = 50‚000 Crs. Indirect taxes = 30‚000 Crs. Subsidies = 5‚000 Crs. Solution: NI at factor cost = GNP – Depreciation – Taxes + Subsidies. = 5‚ 00‚000- 50‚000 – 30‚000+5‚000 = 4‚ 25‚000 Crs. Calculate GNP and NNP from the following data. Net income from abroad is Rs. 1‚400 Crs.‚ GDP is Rs.20‚ 000
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income approach and the expenditure approach to measuring national income. 20.3 National Income Accounting: Some Further Issues 3. explain the difference between real and nominal GDP and understand the GDP deflator. discuss the many important omissions from official measures of GDP. understand why real per capital GDP is a good measure of average material living standards but an incomplete measure of overall well-being. 4. 5. Copyright © 2014 Pearson Canada Inc. Chapter 20‚ Slide 2 20.1 National
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73-240 | Recitation A Problem Set 1 Problem 1: Nominal GDP‚ Real GDP‚ Price Indices‚ and Inflation A. Nominal GDP in Year 1 = $430 Nominal GDP in Year 2 = $617.50 Growth Rate of Nominal GDP = 44% B. RGDP(1) in Year 1 = $430 RGDP(1) in Year 2 = $410 RGDP(1) growth = -4.65% RGDP(2) in Year 1 = $655 RGDP(2) in Year 2 = $617.50 RGDP(2) growth = -5.73% The answer differs depending on which base year you use because the relative prices of the goods in comparison to each other (price
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Abundo‚ Marie Rose R. Eco 2a/ B2F/5338 2nd/BSBA-FM Prof. Micheal Noel 1.) What is GNP? GNP (Gross National Product) is the market value of all final goods and services produced during a given period by factor of production owned by a country’s citizen‚ regardless of where the output is produced. For most countries‚ the difference between GDP and GNP is small. (Case & Fair‚ 2007) The market value of all final goods and services produced during a given period measures both
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20. The Measurement of National Income [20.1 National Output and Value Added] Production occurs in stages Some firms produce outputs that are used as inputs by other firms‚ and these other firms‚ in turn‚ produce outputs that are used as inputs by yet other firms Double counting (multiple counting) is the error that would arise in estimating the nation’s output by adding all sales of all firms Could be solved by distinguishing between two types of output Intermediate Goods:
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Economics (4th Quarter Long Test Reviewer) *Application of Demand and Supply: Government and Price Control (in-case kailangan) Price Control – Refers to the fixing of prices by the government. By doing so‚ it creates shortage or surplus. Price Ceiling – A maximum price at which a good can be sold. Price Floor – Minimum price buyers are required to pay for a good. Elasticity The price elasticity of demand is computed as the percentage change in quantity demanded divided by the percentage change
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Lecture1 1.What’s the “ economizing problem”? Scarce resources VS. unlimted wants. ( labor‚ capital‚ land) 2. Are “normative statements”(规范声明) merely factual and free of value-judgment? No‚ normative is prescriptive. Things should be postive and factual. 3. Define the “fallacy of composition”. Fallacy of composition(组合谬误) is false generation. 4. Money is not considered a resource. Why? Because money is not a product. 5. Why is the production possibilities curve downsloping? Because
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Practice Problems PARTI: MULTIPLE CHOICE 1. The CPI index: A. Is usually highly correlated with the GDP deflator B. Measures the price of a consumption basket; the GDP deflator‚ instead‚ measures the cost of a basket of locally produced goods C. Is sensitive to the high volatility of the price of food and energy D. All of the above 2. Looking at the composition of GDP in the last 50 years‚ we can claim that: A. Both in India and the US the consumption share has been converging to
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AKNOWLEDGEMENT Professional career of a quantity surveyor is depended on the cost controlling of the project. Main professional characteristic of the quantity surveyor is cost estimating to analyze the project cost of a project correctly whether it is a contractor’s point of view or client’s point of view. Therefore‚ being a professional quantity surveyor‚ knowledge in basic economic principles is very important feature. Economics is related to any industry in the word. Construction industry
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(rather than nationals as in GNP) gives often a more accurate picture of the level of activity in a country. The difference between GDP and GNP is net unilateral transfers and factor income of foreigners. GROSS NATIONAL PRODUCT – The gross national product is the sum total of all final goods and services produced by the people of one country in one year. The GNP is a flow concept. It can be calculated with either the expenditure approach or the income approach. The GNP excludes intermediate goods
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