ASSIGNMENT -
Q1. The following table lists the stages in the production of a personal computer. What is the value of the computer in GDP?
|
Stage
|
Value Added
|
|
Components manufacture
|
$50
|
|
Assembly
|
250
|
|
Wholesaler
|
500
|
|
Retailer
|
1,500
|
Q2. What is the difference between GDP and each of the following?
a. Gross national Product
b. Net national Product
c. National Income
d. Personal income
e. Disposable Personal Income
Q3. What is the price of 1 US dollar in terms of each of the following currencies, given the following exchange rates?
a. 1 euro = $.90
b. 1 Chinese yuan = $.12
c. 1 Israeli shekel = $.30
d. 1 Kuwaiti dinar = #3.20
Q4. The US dollar price of a Swedish krona changes from $.1572 to $.1730
a. Has the dollar depreciated or appreciated against the krona?
b. Has the krona appreciated or depreciated against the dollar?
Q5. How reasonable is it for every country to follow policies aimed at increasing net exports?
Q6. How did the US become the world's largest debtor nation in the 1980s?
Q7. If the US dollar appreciated against the Japanese yen what would you expect to happen to US net exports to Japan?