Question

1. Bob orders 60 bottles of wine from a French distributor at a price of $30 per bottle. 2. A U.S. company sells 300 spark plugs to a Korean company at $5.00 per spark plug. 3. Eric, a U.S. citizen, pays $1,100 for a laptop he orders from Mack (a U.S. company). Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year. Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative. Consumption Investment Government Purchases Imports Exports Net Exports Gross Domestic Product (GDP) Amount (Dollars) 

          1. Bob orders 60 bottles of wine from a French distributor at a price of $30 per bottle.
2. A U.S. company sells 300 spark plugs to a Korean company at $5.00 per spark plug.
3. Eric, a U.S. citizen, pays $1,100 for a laptop he orders from Mack (a U.S. company).
Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current
year.
Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative.
Consumption
Investment
Government Purchases
Imports
Exports
Net Exports
Gross Domestic Product (GDP)
Amount
(Dollars)
Show more…
1. Bob orders 60 bottles of wine from a French distributor at a price of 30 per bottle. 2. A U.S. company sells 300 spark plugs to a Korean company at5.00 per spark plug. 3. Eric, a U.S. citizen, pays 1,100 for a laptop he orders from Mack (a U.S. company). Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year. Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative. Consumption Investment Government Purchases Imports Exports Net Exports Gross Domestic Product (GDP) Amount (Dollars)

Added by Tyler L.

Close

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
AceChat toggle button
Close icon
Ace pointing down

Please give Ace some feedback

Your feedback will help us improve your experience

Thumb up icon Thumb down icon
Thanks for your feedback!
Profile picture
Bob orders 60 bottles of wine from a French distributor at a price of $30 per bottle. A U.S. company sells 300 spark plugs to a Korean company at $5.00 per spark plug. Eric, a U.S. citizen, pays $1,100 for a laptop he orders from a U.S. company. Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year. Hint: Be sure to enter 0 if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative. Amount (Dollars) Consumption Government Purchases Imports Exports Net Exports Gross Domestic Product (GDP)
Close icon
Play audio
Feedback
Powered by NumerAI
Danielle Fairburn Kathleen Carty
David Collins verified

Jennifer Stoner and 50 other subject Microeconomics educators are ready to help you.

Ask a new question
*

Labs

-

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs
*

Key Concepts

-
Key Concept
Premium Feature
Explore the core concept behind this problem.
Play button
Key Concept
Premium Feature
Explore the core concept behind this problem.
Your browser does not support the video tag.
*

Recommended Videos

-
explain-how-each-of-the-following-transactions-generates-two-entries-a-credit-and-a-debit-in-the-a-3

Explain how each of the following transactions generates two entries-a credit and a debit-in the American balance of payments accounts, and describe how each entry would be classified: a. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank. b. An American buys a share of German stock, paying the seller with a check on an American bank. c. The Korean government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy Korean currency from its citizens. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France, paying with a traveler's check. e. A California winemaker contributes a case of cabernet sauvignon for a London wine tasting. f. A U.S.-owned factory in Britain uses local earnings to buy additional machinery.

International Economics: Theory and Policy

1will-each-of-the-following-transactions-be-included-in-gdp-for-the-united-states-explain-why-or-why-not-acoca-cola-builds-a-new-bottling-plant-in-the-united-states-b-delta-sells-one-of-its-08044

Will each of the following transactions be included in GDP for the United States? Explain why or why not. a. Coca-Cola builds a new bottling plant in the United States. b. Delta sells one of its existing airplanes to Korean Air. c. Ms. Moneybags buys an existing share of Disney stock. d. A California winery produces a bottle of Chardonnay and sells it to a customer in Montreal, Canada. e. An American buys a bottle of French perfume in Tulsa. f. A book publisher produces too many copies of a new book; the books don't sell this year, so the publisher adds the surplus books to inventories. g. The book publisher is able to sell the remaining books that had been placed in inventory the following year.

Jennifer S.
assume-an-economy-has-2-firms-firm-a-produces-wheat-and-firm-b-produces-bread-in-a-given-year-firm-aproduces-50000-bushels-of-wheat-sells-20000-bushels-of-wheat-to-firm-b-at-3-per-bushel-exp-40178

Assume an economy has 2 firms. Firm A produces wheat and firm B produces bread. In a given year, firm A produces 50,000 bushels of wheat, sells 20,000 bushels of wheat to firm B at $3 per bushel, exports 25,000 bushels of wheat at $3 per bushel, and stores the rest as inventory. Firm A pays $50,000 in wages to consumers. Firm B produces 50,000 loaves of bread and sells all of it to domestic consumers at $2 per loaf. Firm B pays consumers $20,000 in wages. The economy also imports and consumes 15,000 loaves of bread for $1 per loaf. (a) Calculate Net Exports. (b) Find Investment. (c) Calculate GDP.

Aarti K.
*

Recommended Textbooks

-
Principles of Economics

Principles of Economics

Gregory Mankiw 8th Edition
achievement 1,922 solutions
Principles of Microeconomics for AP® Courses

Principles of Microeconomics for AP® Courses

Steven A. Greenlaw, David Shapiro, Timothy Taylor 2nd Edition
achievement 1,459 solutions
Economics

Economics

Michael Parkin 12th Edition
achievement 1,423 solutions
*

Transcript

-
00:01 Explain how each of the following transactions generates two entries, a credit and debit in the american balance of payments accounts, and describe how each entry would be classified.
00:14 An american buys a share of german stock paying by writing a check on an account with a swiss bank.
00:19 When german stocks are purchased by an american, it is the import of german assets.
00:24 Therefore, it is a debit entry in the capital account to the corresponding credit entry to the value of german stock as there is full payment of swiss bank deposit.
00:32 An american buys a share of german stock paying the seller with a check on an american bank.
00:39 When an american buys a german stock by writing a check on an american bank, it will be a debit in the capital account because there is an import of financial asset from germany.
00:49 Holdings from american bank are decreased.
00:53 Therefore, it is a credit to the financial account.
00:56 The korean government carries out an official foreign exchange intervention in which it uses dollars held in the american banks to buy korean currency from its citizens.
01:05 The foreign exchange intervention initiated by the korean government is a kind of transfer or exports of korean assets from the u .s.
01:13 Therefore, it is a debit entry in the u .s.
01:16 Capital account, whereas increase in u .s...
Need help? Use Ace
Ace is your personal tutor. It breaks down any question with clear steps so you can learn.
Start Using Ace
Ace is your personal tutor for learning
Step-by-step explanations
Instant summaries
Summarize YouTube videos
Understand textbook images or PDFs
Study tools like quizzes and flashcards
Listen to your notes as a podcast
Continue solving this problem
Create a free account to:
  • View full step-by-step solution
  • Ask follow-up questions with Ace AI
  • Save progress and study later
Continue Free
Join the community

18,000,000+

Students on Numerade

Trusted by students at 8,000+ universities

Numerade

Get step-by-step video solution
from top educators

Continue with Clever
or



By creating an account, you agree to the Terms of Service and Privacy Policy
Already have an account? Log In

A free answer
just for you

Watch the video solution with this free unlock.

Numerade

Log in to watch this video
...and 100,000,000 more!


EMAIL

PASSWORD

OR
Continue with Clever