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