Data for Questions 65-69
SNA statistics of the Amalgamated States of Americania (in trillions of AS$)
National Income...... 1000
Personal Income Tax...... 490
Corporate Profit Tax...... 100
Sales Taxes (indirect taxes)...... 200
Social Security premiums and contributions...... 300
Depreciation (Capital Consumption Allowance)...... 100
Transfers received by Households (from the Gov't) ...... 180
Undistributed Corporate Profits...... 90
Interest Income on Gov't Bonds received by Households
(as interest on public debt) ...... 90
Consumption expenditure of Households (C) ...... 250
Disposable Personal Income (DPI)...... =C+S
65. In the ASA GNP is:
A. 1390
B. 1300
C. 570
D. 1100
E. same as the NNP
66. to the ASA NNP is:
A. 1290
B. 1200
C. 1100
D. same as GNP
E. none of the above is true
67. to the ASA Personal Income (PI) is
A. 510
B. 980
C. 780
D. same as National Income (i.e. NNP at factor cost)
E. none of the above is true
68. to the ASA Disposable Personal Income (DPI) is
A. 0
B. 100
C.290
D.300
E. none of the above is true
69. to the ASA total saving of the households (S) is:
A.0
B. 40
C. same as consumption expenditure (C)
D.50
E. none of the above is true
2.The US GNP:
A.Is about 8 trillion dollars
B.Is about 4 trillion dollars
C.Is about 2 trillion dollars
D,Is about 1 trillion dollars
E,None of the above
3The US GNP:
A,Is the highest in the world
B.Is about equal to the GNP of Switzerland
C.Is about three times bigger than that of the Russian Federation
DIs about one half of the GNP of Kuwait
E.None of the above
5.The US GNP per capita:
A.Is the highest in the world
BIs about equal to the GNP per capita of Switzerland
C.Is about three times bigger than that of the Russian Federation
D.Is about 60% of the GNP of Liechtenstein
E.None of the above
6.Modem methodology of national accounts was:
A.Worked out in the 1890s and 1900s by the US Government (as a result of the Sherman Act of
1890)
B.Worked out in the 1920s and 1930s by the League of Nations (despite the US dissent)
C.Worked out in the 1920s and 1930s by NBER, Inc.
D,Worked out in the 1940s and 1950s by RAND, Inc.
E.Worked out in the 1920s and 1930s by an American economist, Irving Fisher, who later
received a Nobel Prize in Economics
7.Real GNP:
A.May be defined as nominal GNP calculated at constant prices
B.May be defined as nominal GNP deflated by an adequate aggregate price index
C.May be defined as nominal GNP minus an adequate aggregate price index
D,Answers A. and B. above are correct
E,Answers B. and C. above are correct
Problem 1:
In the country of JamaisVu:
consumption expenditures by households...... C= 1700
private domestic gross investment expenditure...... IB= 300
private domestic net investment expenditure...... lN= 150
government expenditure on goods & services...... G= 350
personal saving...... S= 50
personal income tax...... T1= 300
indirect taxes (e.g. sales tax or VAT)...... T2= 200
export...... X= 300
import...... Z= 400
Given the above data calculate the following:
[standard symbols have been used]
1.1.GNP
1.2.NNP
1.3.NI
1.4.DI
1.5.PI
1.6.Government budget deficit
1.7.Trade balance
Problem 2:
SNA (System of National Accounts) of country X
Households' income from government bonds &
treasury bills (interest earned on
domestic public debt outstanding) 100
National Income 1000
Social Security (SS) taxes/contributions 100
Undistributed corporate profits 100
Gov't transfers received by households 100
CCA (capital consumption allowance = depreciation) 100
Personal income tax 100
Corporate profit tax 100
Indirect taxes 100
Calculate:
2.1.GNP
2.2.NNP at market prices
2.3.NNP at factor cost
2.4.DPI
Problem 3:
In the Never-Never Land three final goods are produced whose respective quantities and prices look as follows:
good year 1999 year 2000
quantities qprices p ($)qp ($)
widget 10 10 20 1
gadget 10 10 10 10
thing-a-magic 10 10 1 20
3.1.Calculate nominal GNP in the year 2000
3.2.Calculate real GNP in the year 2000 (at constant prices of 1999)
3.3.Calculate real GNP in the year 1999 (at constant prices of 2000)
3.4.Calculate the implicit GNP deflator in the year 2000 (i.e. 2000/1999)
3.5.Calculate the index of growth of the nominal GNP 2000/1999