Ans: Expenditure on new plants , equipment , and residential construction , plus changes in business inventories.
Explanation:
Gross investment refers to expenditure on new plants , equipment , and residential construction , plus changes in business inventories. When depreciation is deducted from gross investment then it is called net investment.
Gross investment is the Expenditure on new plants, equipment, and residential construction, plus changes in business...
Investment consist of spending on new plants, capital equipment, machinery, inventories, construction etc. The investment decision weighs marginal benefits and marginal cost. The expected rate return is the marginal benefit, and the interest rate ( the cost of borrowing funds) represents the marginal cost. True of false
3. Consider the following table for Canada's GDP in 2016 Components of GDP in 2016 (billions of dollars) Category Personal expenditure on consumer goods and services Durable goods 231.2 273.4 648.9 28.6 Non-durable goods Services Non-profit institutions serving households' final consumption expenditure General government's final consumption expenditure Business gross fixed capital formation 429.8 Residential structures 154.1 Non-residential structures Machinery and equipment 80.2 33.3 2.8 Intellectual property products Non-profit institutions serving households' gross fixed capital formation General government's gross fixed capital...
526 You are given the following information Durable good consumption Residential investment Imports Government expenditure Receipts of factor income from abroad Personal income 987 1259 45 7863 66 Nonresidential investment 893 1056 7618 125 Nondurable goods Exports Services Depreciation Change in inventories Payments of factor income abroad Personal taxes 26 59 2538 Find GNP
462 526 You are given the following information. Durable good consumption Residential investment Imports Government expenditure Receipts of factor income from abroad 987 1259 45 Personal income 7863 Nonresidential investment 66 893 Nondurable goods Exports 1056 Services 7638 125 Depreciation Change in inventories Payments of factor income abroad 26 59 Personal taxes 2538 Find GNP Daranrants
462 526 You are given the following information. Durable good consumption Residential investment Imports Government expenditure Receipts of factor income from abroad 987 1259 45 Personal income 7863 Nonresidential investment 66 893 1056 7638 Nondurable goods Exports Services Depreciation Change in inventories Payments of factor income abroad Personal taxes 125 26 59 2538 Find disposable personal income
14. Investment (gross private domestic investment) does not include a. The sale of stocks and bonds b. The purchase of business capital goods (machinery) c. New factories and homes being built d. Changes in business inventories 15. Which of the following would be classified as a stock variable a. Mi b. GDP c. National income d. Depreciation (capital consumption allowance)
2. Use the following information to calculate GDP. You may calculate GDP from either the expenditure side or the income side of the accounts. 3,200 1,500 Government purchases of goods and services Consumption 11,500 Compensation of employees 9,100 Business structures and equipment investment Residential investment 500 R&D expenditures 200 Corporate profits 1,500 Rent 300 Interest 1,000 Proprietors income 200 Change in business inventories -100 Taxes on production and imports 2,000 Government transfer payments 1,800 Exports 1,500 Imports 2,000 Depreciation 2,000...
11) Gross Domestic Product (GDP) is An thetotal wholisagoods and services producedby fciors oduion owned by citizens of a nation. B) the total market value of all services produced by factors of production located within a nation's borders. C) the total market value of all goods produced within a nation's borders. D) the total market value of all final goods and services produced by factors of production located within a nation's borders. 12) Intermediate goods are A) goods that are...
I 1) Gross Domestic Product (GDP) is A) the total wholesale value of all final goods and services produced by factors of production owned by citizens of a nation B) the total market value of all services produced by factors of production located within a nation's borders. C) the total market value of all goods produced within a nation's borders D) the total market value of all final goods and services produced by factors of production located within a nation's...
7. Measuring GDP The following table shows data on personal consumption expenditures, gross private domestic investment, exports, imports, and government purchases of goods and services for the United States in 2009, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP by adding together the final demands of consumers, business firms, the government, and foreigners-a method of calculating GDP known as the expenditure approach....