Unformatted text preview: made to go from national income to GDP?
He shows the amount of income paid as compensation of employers, rents, interest, proprietors
Reporate income tax, dlindenads, and undistributed corporate profit. This amount will be less than GDP.
Adoes the full expenditures on all final goods and services To get to GOP, three items seed to be added. )
income First, indirect business taxes that are paid to government should be added These taves include
Parasites taxes, excise taxes. business property taxes, license fees and custom duties, Second, there is an
ication for the consumption of fixed capital (depreciation) that must be added so national income. Third, net
areign factor income is added to national income. This net foreign factor income is the
e is the difference between what
foreign-owned resources carried in the U.S. minus what U 5-owned resources earn abroad GDP represents
"domestic" production, regardless of whether the domestic production with the U.S. was foreign or U S. owned
national income plus indirect business taxes. plus consumption of fixed capital, plus set foreign factor income
16.How does NDP differ from GDP?
The difference between NDP and GDP is the value of the consumption of fixed capital of depreciation allowance
GDP includes gross private investment expenditures. NDP includes net private investment expenditures after the
depreciation allowance has been subtracted from gross investment
17. Howdoes the personal income measure differ from the disposable income measure?
Disposable income is spendable income after personal taxes have been subtracted from personal income
1 8. The following is a list of figures for a given year in billions of dollars. Using this data, compute: (a) GDP.
NDP. (C) NI; (d) Pl. (e) DI; (f) Net exports
Corporate income taxes
Indirect business taxes
Social security contributions
Undistributed corporate profits
Compensation of employees
Personal consumption expenditures..
by-Consumption of fixed capital..
Imports to US
Gross private domestic investment..
Net foreign factor income earned in the US
( GDP $462. (6) NDP 5458. (c) NI $435, (d) PI $394 (e) DI $356. (1) Net exports 5-3.
C:Mohammed & Khamis...
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- Fall '18
- PROF. MSUYA