Problem 1. The following table lists the stages required in the production of a personal computer. What is the value of the computer in the GDP?
Stage Value Added
Components manufacture $50
Assembly $250
Wholesaler $500
Retailer $1500
Problem 2. What is the GDP for this economy?
Problem 3. What is the GNP for this economy?
Problem 4. What is the NNP for this economy?
Problem 5. What is the national income for this economy?
Problem 6. What is the gross investment in this economy?
Problem 7. The U.S. 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?
Problem 8. Suppose the U.S. dollar price of a British pound is $1.50; the dollar price of a euro is $.90; a hotel room in London, England, costs 120 British pounds; and a comparable hotel room in Hanover, Germany costs 220n euros.
(a) Which hotel room is cheaper to a U.S. tourist?
(b) What is the exchange rate between the euro and the British pound?