(d) The following is an extract
from the national income data of a country in 2020. Study the
extract and answer the questions that follow: The agricultural
sector in 2020 produced foodstuffs, livestock, coffee and
groundnuts worth GHȼ 1,151 million. Manufacturing, construction,
mining, water and electricity produced GHȼ 1,035 million. Transport
and communication, finance, insurance and government services
contributed GHȼ 1,170 million. Farmers received GHȼ 350 million as
subsidies while government collected GHȼ 390 million in indirect
taxes. GHC150 million worth of capital was estimated to have been
used up. Required: i. Determined the country’s Gross Domestic
Product in market prices. (4 marks) ii. Calculate the Net Domestic
Product at factor cost. (4 marks) iii. What method of estimating
the national income is used in the extract? (2 marks)
Homework Answers
d)i) The GDP in market prices equals the total value of goods produced by different sectors in the nation - subsidies + indirect taxes.
Total value of goods poduced = Agricultural sector-GHȼ 1,151 million + Manufacturing, construction, mining, water and electricity-GHȼ 1,035 million + Transport and communication, finance, insurance and government services-GHȼ 1,170 million = GHȼ 3,356 million.
GDP at MP = GHȼ (3,356 - 350 + 390)million = GHȼ 3,396 million
ii) NDP at FC = GDP at MP - Indirect taxes + subsidy - depreciation
= GHȼ (3,396 - 390 + 350 - 150)million = GHȼ 3,206 million
iii) In the given extract we use the product method to give the value of GDP. It gives the total value of goods produced by each sector of the nation
Add Answer to:
(d) The following is an extract
from the national income data of a country in 2020....
15. Calculate National Income and Private Income from the following data: R (in crores) 25 Items...
15. Calculate National Income and Private Income from the following data: R (in crores) 25 Items 1. Current transfers by government 18. 2. Net domestic product at factor cost accruing to the government 90 200 -50 3. Govt. final consumption expenditure 4. Net exports 5. National debt interest 6. Net domestic capital formation 7. Consumption of fixed capital 8. Net 60 100 30 factor income paid to abroad 20 600 9. Private final consumption expenditure 10. Net indirect tax 11....
Question 4 Assume that the government of a hypothetic country, Newsland, publishes the data of the...
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PLEASE HELP WITH QUESTION 6,7,8 THANK YOU! PART 1Introduction c. A homemaker enters the workforce, taking...
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I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this p...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...
15. Calculate National Income and Private Income from the following data: R (in crores) 25 Items 1. Current transfers by government 18. 2. Net domestic product at factor cost accruing to the government 90 200 -50 3. Govt. final consumption expenditure 4. Net exports 5. National debt interest 6. Net domestic capital formation 7. Consumption of fixed capital 8. Net 60 100 30 factor income paid to abroad 20 600 9. Private final consumption expenditure 10. Net indirect tax 11....
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PLEASE HELP WITH QUESTION 6,7,8 THANK YOU!
PART 1Introduction c. A homemaker enters the workforce, taking a job year (a few years ago), the production and price da ta that will pay $40,000 over the year. The home were as follows: maker must pay $16,000 over the year for profes- Quantity 3000 bags 6000 bunches 8000 bags Fruit Price sional child care services Apples Bananas ag d. A Japanese company builds an auto plant in Tennessee for $100,000,000, using only...
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I need Summary of this Paper i dont need long summary i need
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some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
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