ECS2603
ASSIGNMENT 07
RESPONSES
DUE: 08/09/2021
,Part 1 of 15 - Part1 3.0 PointsDeals with definitions and concepts for Lesson 2: National
accounts
Question 1 of 313.0 Points
Match the concept with its description
A. Final goods
B. Base year
C. Intermediate goods
D.
Gross domestic expenditure
Incorrect
A
1.
Are goods that are used or consumed by individuals, households and firms and not processed further
or resold.
Incorrect
C
2. Are goods that are purchased to be resold or used as inputs in producing other goods.
Incorrect
D
3. is the total value of spending that originates within the borders of a country.
Incorrect
B
4.
Is the year in which prices are used to value goods and services produced in different years.
Answer Key:1:A, 2:C, 3:D, 4:B
Feedback:
Final goods
Final goods are goods that are used or consumed by individuals, households and firms and not
processed further or resold. Included in final goods are capital goods.
Gross domestic product
Gross domestic product (GDP) is the total value of all final goods and services produced within the
geographical borders of a country
Intermediate goods
Intermediate goods are goods that are purchased to be resold or used as inputs in producing other
goods.
Gross domestic expenditure
GDE is the total value of spending that originates within the borders of a country. It includes imports
of goods and services but excludes exports of goods and services, since spending on exports
originates from the rest of the world. In symbols it is written as C + I + G.
Base year
The base year is the year in which prices are used to value goods and services produced in different
years.
Part 2 of 15 - Part 2 6.0 Points
,Make use of the section on National Accounts of the South African Reserve Bank Quarterly Bulletin to
find the KBP codes. Only enter the code for instance 6640C.
Question 2 of 312.0 Points
What is the KBP code for gross domestic expenditure (including residual) at constant 2010 prices
Yearly figures?KBP 6012Y
Answer Key:6012Y
Feedback: 6012Y
Question 3 of 312.0 Points
What is the KBP code for real gross national income (at 2010 prices). Yearly figures? KBP 6016Y
Answer Key:6016Y
Feedback:6016Y
Question 4 of 312.0 Points
What is the KBP code for GDP at market prices at constant 2010 prices Yearly figures? KBP 6006Y
Answer Key:6006Y
Feedback:6006Y
Part 3 of 15 - Part 3 4.0 Points
Question 5 of 314.0 Points
Which 3 of the following statements with regards to total production, income and expenditure in the
national accounts are correct?
A. The equality between total production, income and expenditure is an example of an identical
equality.
B. In the economy firms generate production and in return receives wages, rent, profits and interest.
C. In the national accounts total production = total income = total expenditure.
D. If total production increases less than total sales then inventories increases.
E. Inventories is not part of total expenditure.
F. The equality between total production, income and expenditure does not hold if different set of
prices are used.
Answer Key:A, C, F
Feedback:The equality between total production, income and expenditure is an example of an
identical equality and it is one of the most important identities in the national accounts. The factors of
production are used by firms to generate production and in return the factros of production receives
wages, rent, profits and interest. The value of production is equal to what is paid out to the factors of
production as income. In the economy firms generate production and in return receives payment
(total expenditure) for the goods and services. It total production increases more than sales
inventories increases. If different sets of prices are used total production, total income and total
expenditure will differ. Inventories is part of investment which is part of total production. If total
production increases less than total sales then inventories decreases. In the national accounts total
income = total production = total expenditure
Part 4 of 15 - Part 4 4.0 Points
Question 6 of 314.0 Points
This question is based on the following data for a country:
Wages: R20 billion
Rent: R5 billion
Interest: R3 billion
Profit: R6 billion
Inventories: R4 billion
, The total production is …, the total income is …, total expenditure is … and total sales is …
A. R38 billion; R38 billion; R38 billion; R38 billion.
B. R34 billion; R34 billion; R34 billion; R31billion.
C. R34 billion; R34 billion; R34 billion; R38 billion.
D. R31 billion; R31 billion; R31billion; R34 billion.
Answer Key:B
Feedback:
Total production is equal to total income and total expenditure = R20 billion + R5 billion + R3 billion +
R6 billion = R34 billion. Total sales = total expenditure minus inventories = R34 billion – R4 billion =
R31 billion.
Part 5 of 15 - Part 5 6.0 Points
Question 7 of 316.0 Points
Which 4 of the following statements are correct with regards to the concept gross domestic product
(GDP)?
A. The value of capital imports is not part of GDP.
B. The value of consumer goods produced in the economy are included in GDP but not the value of
capital goods produced in the economy.
C. Double counting occurs when the value of intermediate goods and services are added to the value
of final goods and services.
D. Provision for depreciation is not included in GDP.
E. GDP is the value of only and services in the economy during a particular period.
F. An increase in the level of economic activity will be reflected in a decrease in GDP, and a decrease
in the level of economic activity will be reflected in an increase in GDP.
G. GDP provides a measure of the level of production in a country.
Answer Key:A, C, D, G
Feedback:The value of capital imports is not part of GDP. Provision for depreciation is not included in
GDP. Double counting occurs when the value of intermediate goods and services are added to the
value of final goods and services. GDP is only the value of final goods and services produced in the
economy. It does include the value of capital good. An increase in the level of economic activity will
be reflected in an increase in GDP, and a decrease in the level of economic activity will be reflected in
a decrease in GDP. GDP provides a measure of the level of production in a country.
Part 6 of 15 - Part 6 5.0 Points
Question 8 of 315.0 Points
Click to see additional instructions
The following data is for a hypothetical country. Use this data to calculate the GDP of the country.
Value of consumer goods imported from the rest of the world: R22 billion
Value of consumer goods produced by foreigners living in the country: R8 billion
Value of capital goods such as tractors imported from America: R5 billion
Value of consumer goods produced by citizens living in the country: R100 billion
Value of motor cars produced the previous year but only sold this year: R8 billion
Value of capital goods such as welding machines produced in the country: R20 billion
Provision for depreciation on capital equipment: R3 billion
R 128 billion
Answer Key:128
Feedback:
ASSIGNMENT 07
RESPONSES
DUE: 08/09/2021
,Part 1 of 15 - Part1 3.0 PointsDeals with definitions and concepts for Lesson 2: National
accounts
Question 1 of 313.0 Points
Match the concept with its description
A. Final goods
B. Base year
C. Intermediate goods
D.
Gross domestic expenditure
Incorrect
A
1.
Are goods that are used or consumed by individuals, households and firms and not processed further
or resold.
Incorrect
C
2. Are goods that are purchased to be resold or used as inputs in producing other goods.
Incorrect
D
3. is the total value of spending that originates within the borders of a country.
Incorrect
B
4.
Is the year in which prices are used to value goods and services produced in different years.
Answer Key:1:A, 2:C, 3:D, 4:B
Feedback:
Final goods
Final goods are goods that are used or consumed by individuals, households and firms and not
processed further or resold. Included in final goods are capital goods.
Gross domestic product
Gross domestic product (GDP) is the total value of all final goods and services produced within the
geographical borders of a country
Intermediate goods
Intermediate goods are goods that are purchased to be resold or used as inputs in producing other
goods.
Gross domestic expenditure
GDE is the total value of spending that originates within the borders of a country. It includes imports
of goods and services but excludes exports of goods and services, since spending on exports
originates from the rest of the world. In symbols it is written as C + I + G.
Base year
The base year is the year in which prices are used to value goods and services produced in different
years.
Part 2 of 15 - Part 2 6.0 Points
,Make use of the section on National Accounts of the South African Reserve Bank Quarterly Bulletin to
find the KBP codes. Only enter the code for instance 6640C.
Question 2 of 312.0 Points
What is the KBP code for gross domestic expenditure (including residual) at constant 2010 prices
Yearly figures?KBP 6012Y
Answer Key:6012Y
Feedback: 6012Y
Question 3 of 312.0 Points
What is the KBP code for real gross national income (at 2010 prices). Yearly figures? KBP 6016Y
Answer Key:6016Y
Feedback:6016Y
Question 4 of 312.0 Points
What is the KBP code for GDP at market prices at constant 2010 prices Yearly figures? KBP 6006Y
Answer Key:6006Y
Feedback:6006Y
Part 3 of 15 - Part 3 4.0 Points
Question 5 of 314.0 Points
Which 3 of the following statements with regards to total production, income and expenditure in the
national accounts are correct?
A. The equality between total production, income and expenditure is an example of an identical
equality.
B. In the economy firms generate production and in return receives wages, rent, profits and interest.
C. In the national accounts total production = total income = total expenditure.
D. If total production increases less than total sales then inventories increases.
E. Inventories is not part of total expenditure.
F. The equality between total production, income and expenditure does not hold if different set of
prices are used.
Answer Key:A, C, F
Feedback:The equality between total production, income and expenditure is an example of an
identical equality and it is one of the most important identities in the national accounts. The factors of
production are used by firms to generate production and in return the factros of production receives
wages, rent, profits and interest. The value of production is equal to what is paid out to the factors of
production as income. In the economy firms generate production and in return receives payment
(total expenditure) for the goods and services. It total production increases more than sales
inventories increases. If different sets of prices are used total production, total income and total
expenditure will differ. Inventories is part of investment which is part of total production. If total
production increases less than total sales then inventories decreases. In the national accounts total
income = total production = total expenditure
Part 4 of 15 - Part 4 4.0 Points
Question 6 of 314.0 Points
This question is based on the following data for a country:
Wages: R20 billion
Rent: R5 billion
Interest: R3 billion
Profit: R6 billion
Inventories: R4 billion
, The total production is …, the total income is …, total expenditure is … and total sales is …
A. R38 billion; R38 billion; R38 billion; R38 billion.
B. R34 billion; R34 billion; R34 billion; R31billion.
C. R34 billion; R34 billion; R34 billion; R38 billion.
D. R31 billion; R31 billion; R31billion; R34 billion.
Answer Key:B
Feedback:
Total production is equal to total income and total expenditure = R20 billion + R5 billion + R3 billion +
R6 billion = R34 billion. Total sales = total expenditure minus inventories = R34 billion – R4 billion =
R31 billion.
Part 5 of 15 - Part 5 6.0 Points
Question 7 of 316.0 Points
Which 4 of the following statements are correct with regards to the concept gross domestic product
(GDP)?
A. The value of capital imports is not part of GDP.
B. The value of consumer goods produced in the economy are included in GDP but not the value of
capital goods produced in the economy.
C. Double counting occurs when the value of intermediate goods and services are added to the value
of final goods and services.
D. Provision for depreciation is not included in GDP.
E. GDP is the value of only and services in the economy during a particular period.
F. An increase in the level of economic activity will be reflected in a decrease in GDP, and a decrease
in the level of economic activity will be reflected in an increase in GDP.
G. GDP provides a measure of the level of production in a country.
Answer Key:A, C, D, G
Feedback:The value of capital imports is not part of GDP. Provision for depreciation is not included in
GDP. Double counting occurs when the value of intermediate goods and services are added to the
value of final goods and services. GDP is only the value of final goods and services produced in the
economy. It does include the value of capital good. An increase in the level of economic activity will
be reflected in an increase in GDP, and a decrease in the level of economic activity will be reflected in
a decrease in GDP. GDP provides a measure of the level of production in a country.
Part 6 of 15 - Part 6 5.0 Points
Question 8 of 315.0 Points
Click to see additional instructions
The following data is for a hypothetical country. Use this data to calculate the GDP of the country.
Value of consumer goods imported from the rest of the world: R22 billion
Value of consumer goods produced by foreigners living in the country: R8 billion
Value of capital goods such as tractors imported from America: R5 billion
Value of consumer goods produced by citizens living in the country: R100 billion
Value of motor cars produced the previous year but only sold this year: R8 billion
Value of capital goods such as welding machines produced in the country: R20 billion
Provision for depreciation on capital equipment: R3 billion
R 128 billion
Answer Key:128
Feedback:
