EC202-A1S10_Answers

EC202-A1S10_Answers - EC 202(01 Assignment 1 S10 Answers...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
EC 202(01) - Assignment # 1 - S10 – Answers 1 Question One a) Calculate net domestic income at factor cost: Item $ million Wages and salaries 20 141 Accrued net income of farm operators   1 026 Corporation profits before taxes  3 946 Interest and miscellaneous investment income  1 174 Net income of non-farm unincorporated business, including rent   3 458 Net Domestic Income at Factor Cost 29 745 b) Calculate GDP income-based: Add indirect taxes less subsidies and add depreciation to NDI to obtain GDP income based. Item $ million Wages and salaries 20 141 Accrued net income of farm operators   1 026 Corporation profits before taxes  3 946 Interest and miscellaneous investment income  1 174 Net income of non-farm unincorporated business, including rent   3 458 Net Domestic Income at Factor Cost 29 745 Indirect taxes less subsidies   4 587 Depreciation   4 769 GDP Income Based 39 101
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
EC 202(01) - Assignment # 1 - S10 – Answers 2 c) Calculate GDP expenditure-based Item $ million Personal consumption  expenditures on goods and services 25 280 Government current expenditure on goods and services   5 181 Exports of goods and services   6 709 Gross Investment   9 153 Imports of goods and services  (7 222) subtract GDP expenditure based 39 101 Question Two In 1995 GDP was $780B $16B in income (interest and dividends) was paid to Canadians by foreigners $49B of income (interest and dividends) was paid by Canadians to foreigners  a) What is the value of net factor payments received by Canadians?  Net factor payments received by Canadians = Income received by Canadians from foreigners  - Income paid by Canadians to foreigners  $16B - $49B = - $33B Can also be stated: Investment income from non-residents – Investment income to non-residents $16 B - $49 B = -$33B b) What is the value of GNP?
Background image of page 2
EC 202(01) - Assignment # 1 - S10 – Answers 3 GDP at market prices $780 B + Income received by Cdns from foreigners          16 B - Income paid by Cdns to foreigners              49 B $747B
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
EC 202(01) - Assignment # 1 - S10 – Answers 4 Question Three GDP excludes some products because they are so difficult to measure. These products include  services performed by individuals for themselves and their families, and most goods that are  produced and consumed at home and, therefore, never enter the marketplace. In addition, illegal  products are not included in GDP even if they can be measured because, by society's definition,  they are bads, not goods. Question Four
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 24

EC202-A1S10_Answers - EC 202(01 Assignment 1 S10 Answers...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online