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BUECO5903: Business Economics Assignment

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Business Economics Assignment (BUECO5903)

   

Added on  2020-05-04

BUECO5903: Business Economics Assignment

   

Business Economics Assignment (BUECO5903)

   Added on 2020-05-04

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Running head: BUSINESS ECONOMICSBusiness EconomicsName of the StudentsName of the UniversityAuthor note
BUECO5903: Business Economics Assignment_1
1BUSINESS ECONOMICSTable of ContentsAnswer9...........................................................................................................................................2Answer (a) GDP by Income method...........................................................................................2Answer (b) GDP by expenditure method....................................................................................3Answer (c) GNE..........................................................................................................................3Answer (d) NDP..........................................................................................................................3Answer (e) NDP better measurement then GDP.........................................................................4Answer (f) GNP...........................................................................................................................4Answer (g) NNP..........................................................................................................................4Answer (h) Current Account Balance..........................................................................................4Answer (i) Gross National Savings.............................................................................................5Answer (j)....................................................................................................................................5Answer (k)...................................................................................................................................6Answer (l)....................................................................................................................................6Answer 10........................................................................................................................................7Answer (a)...................................................................................................................................7Answer (b)...................................................................................................................................7Answer (c)...................................................................................................................................7Answer 11........................................................................................................................................8Answer (a)...................................................................................................................................8
BUECO5903: Business Economics Assignment_2
2BUSINESS ECONOMICSAnswer (b).................................................................................................................................10Answer 12......................................................................................................................................10Answer (a).................................................................................................................................10Answer (b).................................................................................................................................10Answer (c).................................................................................................................................11Answer (d).................................................................................................................................11Answer 13......................................................................................................................................12Answer (a).................................................................................................................................12Answer (b).................................................................................................................................13Answer (c).................................................................................................................................14Answer (d).................................................................................................................................15Answer 14......................................................................................................................................15Answer (a).................................................................................................................................15Answer (b).................................................................................................................................16Answer (c).................................................................................................................................16Answer 15......................................................................................................................................16Answer 16......................................................................................................................................17References......................................................................................................................................19
BUECO5903: Business Economics Assignment_3
3BUSINESS ECONOMICSAnswer9Answer (a) GDP by Income methodGDP= Total national income+ indirect business taxes+ depreciation+ net foreign income(Petroff, 2013)Total national income= Sum of all wages, rents, interest and profitTotal national income= 1687+ 482+ 2651Total national income= $4820billionGDP= 4820+0+320+0
BUECO5903: Business Economics Assignment_4
4BUSINESS ECONOMICSIndirect business taxes = 0Depreciation= 320Net foreign income= 0GDP= $5140 billionAnswer (b) GDP by expenditure methodGDP= C+I+G+NX (Petroff, 2013)C= consumptionI= investmentG= government purchasesNet Export= Export-Import GDP= 3115+ (320+785)+ (585+210)+ (690-565)GDP= 3115+ 1105+ 795+125GDPMP= $5140 billionAnswer (c) GNEGNE= C+I+G+IMIM= import expenditureGNE= 3115+ 1105+795+565GNE= $5580 billion
BUECO5903: Business Economics Assignment_5
5BUSINESS ECONOMICSAnswer (d) NDPNDP= GDP-DepreciationNDP= 5140-320NDP= $4820 billion Answer (e) NDP better measurement then GDPIt is accepted that Net Domestic Product is a better measurement than Gross Domestic productbecause it has the ability to control depreciation. It is necessary to control depreciation in realworld because the capital that is formed has some rate of usage and depreciate with time.However, GNP is also regarded as a bad measure because depreciation distorts its calculationand depreciation is a non-measurable variable. However, the deduction that it calculates helpsthe economy to know its performance over the year and the improvement that it should take infuture (Gwartney, Stroup & Clark, 2014). Answer (f) GNPGNP= GDP+ Net income inflow from abroad-Net income outflow to foreign countriesGNP= 5140+ 0-34GNP= $5106 billion Answer (g) NNPNNP= GNP- DepreciationNNP= 5106- 320NNP= $4786 billion
BUECO5903: Business Economics Assignment_6

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