Cosico is a nation that suffered a severe drought

This preview shows page 4 - 6 out of 6 pages.

2)Cosico is a nation that suffered a severe drought last year. Because most citizens are farmers, they endured financial losses. Consumer spending was only $3.5 million on goods and services. The government spent $13 million on national defense and $5.5 million on a water storage facility. The only import last year was bottled water. Cosico imported $16 million of bottled water from a neighboring nation. Due to the drought, there was no available agriculture to export. Total exports were $0. As expected, investmentwas very small, with only $1.4 million invested for the year.Is This Counted as Part of GDP?Which of the following are includedand which are excludedin calculating GDP? Explainyour decisions.1.A monthly check received by an economics student who has been granted a government scholarship.=3.5I=1.4G=13,000,000X=0M=16,000,000
2.A farmer’s purchase of a new tractor.
3.A plumber’s purchase of a two year old used truck.
C=3.5I=1.4G=13,000,000X=0M=16,000,000
4.Cashing a U.S. government bond.
5.The services of a mechanic fixing the radiator on his own car.
6.A Social Security check from the government to a retired store clerk.
7.An increase in business inventories.
8.The government’s purchase of a new submarine for the Navy.
9.A barber’s income from cutting hair.
10.Income received from the sale of Nike stock.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture