Excercise 1 Answers
ECONTWO: EXERCISE 1
WINFRED M. VILLAMIL 3rd TERM, 2013-2014
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I. Indicate to which the following items of GDP belong by writing C for personal consumption expenditure, I for gross capital formation, G for government spending, and EX for exports. Write O if it is excluded from current GDP.
O 1. Payment by the government of social security benefits to a retired public school teacher
G 2. Construction by government of a new road.
I 3. Net additions to the stock of unsold shoes.
I 4. Newly constructed residential homes.
I 5. Purchase of new machines by a private firm.
C 6. Payments you made to David’s Salon for your hair and make up.
O 7. Purchases of stocks and bonds by an investor.
O 8. Production and sale of marijuana
I 9. Construction of a new factory by a private enterprise.
O 10. Purchases of imported chocolates by consumers.
O 11. Vegetables produced in the backyard and consumed by the household.
O 12. Sales of second hand cars.
EX13. Sales by Intel Philippines of semiconductors to the US.
O 14. Sales of a San Miguel Brewery in Hong Kong to the Chinese Mainland.
O 15. Sales by Motolite of car batteries to Nissan Philippines
II.. Indicate to which the following items belong by writing GDP for Gross Domestic Product, GNP for Gross National Product. “Both” for an item that is included in both GDP and GNP.
BOTH 1. Salary of your teacher in Economics.
BOTH 2. Christmas bonus paid to government employees of the Philippines.
BOTH 3. Medical insurance premium paid to a Filipino insurance company in Makati.
GDP 4. Consultancy fee of a US scientist working in the Philippines.
GNP 5. Salaries of overseas Filipinos in Hong Kong.
GNP 6. Profits of San Miguel in Hong Kong.
GDP 7. Profits of US shareholder of Intel Philippines.
GNP 8. Rental income of a Filipino who owns an apartment in the US.
BOTH 9. Rental income of a
WINFRED M. VILLAMIL 3rd TERM, 2013-2014
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I. Indicate to which the following items of GDP belong by writing C for personal consumption expenditure, I for gross capital formation, G for government spending, and EX for exports. Write O if it is excluded from current GDP.
O 1. Payment by the government of social security benefits to a retired public school teacher
G 2. Construction by government of a new road.
I 3. Net additions to the stock of unsold shoes.
I 4. Newly constructed residential homes.
I 5. Purchase of new machines by a private firm.
C 6. Payments you made to David’s Salon for your hair and make up.
O 7. Purchases of stocks and bonds by an investor.
O 8. Production and sale of marijuana
I 9. Construction of a new factory by a private enterprise.
O 10. Purchases of imported chocolates by consumers.
O 11. Vegetables produced in the backyard and consumed by the household.
O 12. Sales of second hand cars.
EX13. Sales by Intel Philippines of semiconductors to the US.
O 14. Sales of a San Miguel Brewery in Hong Kong to the Chinese Mainland.
O 15. Sales by Motolite of car batteries to Nissan Philippines
II.. Indicate to which the following items belong by writing GDP for Gross Domestic Product, GNP for Gross National Product. “Both” for an item that is included in both GDP and GNP.
BOTH 1. Salary of your teacher in Economics.
BOTH 2. Christmas bonus paid to government employees of the Philippines.
BOTH 3. Medical insurance premium paid to a Filipino insurance company in Makati.
GDP 4. Consultancy fee of a US scientist working in the Philippines.
GNP 5. Salaries of overseas Filipinos in Hong Kong.
GNP 6. Profits of San Miguel in Hong Kong.
GDP 7. Profits of US shareholder of Intel Philippines.
GNP 8. Rental income of a Filipino who owns an apartment in the US.
BOTH 9. Rental income of a