1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Bas_tet [7]
3 years ago
8

The National Income and Product Accounts identity states:__________A) Expenditure  Production  Income.B) Production  Expendit

ure  Income.C) Production  Expenditure  Income.D) Expenditure  Production  Income.E) Production  Expenditure  Income.
Business
1 answer:
zaharov [31]3 years ago
3 0

Answer:

I. National Income Accounting:

National income accounts are an accounting framework is useful in measuring economic activity.

A. Three approaches—all produce the same measurement of the production of the economy.

1. product approach: how much output is produced

2. income approach: how much income is created by production

3. Expenditure approach: how much purchasers spend

B. Why all three approaches are the same: Assumes no unsold goods (at this point) then the market values of goods and services produced must equal the amount buyers spend to purchase them (product approach=expenditure approach). What the seller receives (income) must equal what is spent (expenditure).

II. Gross Domestic Product (GDP)

A. GDP vs. GNP

GNP= output produced by domestically owned factors or production. (By our people)

GDP= includes production produced by foreign owed factors of production within the countries border and excludes domestically owned production in foreign countries. (On our soil)

1. GDP = GNP – net factor payment from abroad (NFP)

2. How big is the difference?

B. Product approach: The market value of all final goods and services produced within a nation during a fixed period of time.

1. Market value: allows comparison between different goods. Has some problems – ignores some goods. underground economy, and government services.

2. Final goods and service: Treatment of inventories; Capital goods; Avoids double counting; Value added.

3. New production: Ignores goods produced in previous periods

C. Expenditure approach: Total spending on final goods and services produced within a nation during a specified period of time.

1. Income expenditure identity and four categories of spending: Consumption (C), Investment (I), government purchases of goods and services (G) and net exports (NX)

Y = C + I + C + NX

2. Consumption(C): Spending by domestic households on final goods and services

a. Consumer durable goods: Long lasting goods

b. Nondurable goods used up quickly

c. Services

3. Investment (I): Spending on new capital goods by business

a. Business fixed investment

b. Residential fixed investment

c. Inventory investment: Changes in the amount of unsold goods, goods in progress and new materials

4. Government purchases of goods and services (G):

a. State and local vs. Federal spending

b. Transfers and interest payments on debt are not counted. They are counted in total government expenditure which is not the same as government purchases of goods and services.

5. Net exports (NX): exports minus imports

a. Need to subtract imports since they are counted in C. I and G can add goods produced within the country purchased by foreign interests (exports).

D. Income approach adds up income received by producers, including profits and taxes paid to the government

1. Income generated by production

a. National income =

compensation of employees

+ proprietors income

+ rental income of persons

+ corporate profits

+ net interest

+ taxes on production

+ business transfers

+ surplus of gov enterprises

b. National income + statistical discrepancy = Net National Product (NNP)

Note: This changed a couple years ago. If you have an old addition, you may see the indirect business tax. It is no long used in this equation!

c. NNP + depreciation = GNP

d. GNP – NFP = GDP

2. Income of private sector and government

a. Private disposable income = income of private sector = private sector income earned at home (Y or GDP) and abroad (NFP) + payments from the government sector (transfers TR and interest on debt INT) – taxes paid to government (T) = Y + NFP + TR + INT – T

b. Government net income = T- TR – INT

III. Saving and Wealth

A. Wealth Difference between assets and liabilities

B. Measures of aggregate savings

1. Saving = current income – current spending; saving rate = saving/current income

2. Private saving (Spvt) Spvt = Y + NFP – T + TR + INT – C

3. Government Saving (Sgovt) Sgovt = T – TR- INT – G

a. Government saving = Government budget surplus (deficit = -Sgovt)

4. National Saving= private saving + government saving

S = Spvt + Sgovt = Y + NFP - C – G = GNP - C – G

C. The uses of private saving

1. S = I + (NX + NFP) = I + CA

CA = NX + NFP = current account balance

2. The use of savings identity

Spvt = I – Sgovt + CA

If the budget deficit increases one or a combination of the following happen

1) private saving must rise

2) investment must fall

3) the current account balance must fall

IV. Prices Indexes, Inflation and Interest Rates

A. Nominal vs. Real variables

Nominal Variables – Measures the economic variable in terms of the current market value.

Real Variable—Measure the variable valued at the prices in a base year.

B. Real vs. Nominal: Calculation the differences

Examples Small country only produces base balls and baseball bats

Explanation:

You might be interested in
Suppose that a planet fitness studio has fixed expenses of $7500 per month and variable expenses of $4.99 per member per month.
natka813 [3]
Answer: $500

$19.99-$4.99=$15
$7500/$15= $500
6 0
3 years ago
Which of the following statements is CORRECT? If Disney issues additional shares of common stock through an investment banker, t
nata0808 [166]

Answer:

The answer is: As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Explanation:

Money market transactions involve financial instruments with high liquidity and short-term maturities. Usually the securities have a one year or less maturity date.

A few examples of commonly traded securities are:

  • Banker’s Acceptance
  • Treasury Bills
  • Repurchase Agreements
  • Certificate of Deposits  
  • Commercial Papers
8 0
3 years ago
c) Explain ONE way in which the adoption of laissez-faire economic policies led to an increase in the share of global manufactur
Alinara [238K]

Answer:

Laissez faire economics advocates for less government regulation and intervention. Extreme laissez faire views dislike all types of taxes and controls.  Of course something like that will never happen, but different economic policies favor certain laissez faire views.

For example, during the 1800s, many politicians believed that business owners were entitled to exploit their workers in order to make higher profits. As a result of these types of policies, 14 or 16 hour long labor days were common, no safety regulations existed, and the wages were not high. Since governments didn't regulate labor markets, businesses were able to benefit form this and increase total production.

8 0
3 years ago
A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the
vesna_86 [32]

Answer:

$24.59 or $24.6 or $25

Explanation:

Value of the share is the present value of dividend associated with that share. We need to calculate the present value of each dividend at year 2 and add them to determine the value of the share.

As given there is no dividend for 3 years,next dividend of $2.4 dividend will be discounted for two years and $3 dividend for three years. After that we need to calculate the  present value using DVM and discount this value for 4 years.

Value of Stock = [ $2.4 (1+14%)^-2 ] + [ $3 (1+14%)^-3 ] + [ $3(1+5%) / (14%-5%) ] x (1+14%)^-4

Value of Stock = $1.85 + $2.02 + $20.72 = $24.59

8 0
3 years ago
After informing his employer that he had cancer, Maury was abruptly fired. The federal legislation that prohibits discrimination
DIA [1.3K]

Answer:

A) the Fair Labor Standards Act.

Explanation:

The fair labor standard act is a federal legislation set up to protect employees from certain sharp practices by employers which pertains to pay packages, minimum wage, record keeping in private or governmental organizations.

This also includes employment standards followed by employers when recruiting workers.

7 0
3 years ago
Other questions:
  • A surge in new home sales and a drop in weekly unemployment claims suggest that the economy might not be as weak as some analyst
    11·1 answer
  • A cell phone company offers a sweepstakes at a local street fair. Participants register for the sweepstakes by completing a card
    10·1 answer
  • Montana company was authorized to issue 125,000 shares of common stock. the company had issued 54,000 shares of stock when it pu
    12·1 answer
  • Which of the following is representative of safeguarding​ assets?
    10·2 answers
  • Joanne and ed greenwood built a new barn with an attached arena. to finance the loan, they paid $1,307 interest on $45,000 at 4.
    10·1 answer
  • The nation itself with all its so called internal improvements meaning
    8·1 answer
  • How can you estimate the total sales volume you can expect in your location?
    11·1 answer
  • Mixed drink containing two shots of 80 proof liquor should be counted as more than one standard drink true or false
    7·1 answer
  • In the context of strategic human resources management, people can increase _____ by helping lower costs, providing something un
    15·1 answer
  • Tracing transactions through the information system relevant to financial reporting. inquiring of entity personnel. assessing in
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!