Question 2 1 pts Table 23-1 The table below contains data for Bahkan for the yea

Question

Question 2 1 pts Table 23-1 The table below contains data for Bahkan for the year 2010. $110 $5 $15 $4 GDP ncome earned by citizens abroad ncome foreigners earn here Losses from depreciation ndirect business taxes Statistical discrepancy Retained earnings Corporate income taxes Social insurance contributions Interest paid to households by government Transfer payments to households from government Personal taxes Nontax payments to government $0 $5 $6 $10 $15 30 Refer to Table 23-1. What were country A's imports in 2010? 0 $120 o s88 O $32 e Previous Next

Explanation / Answer

Use the identity Y=C+I+G+(X-M) to find the value of imports

-M=Y-C-I-G-X or M=Y+C+I+G+X

We would not use: Transfer payments to HH from Govt, Income foreigners earn here,income earned by citisens abroad,Non tax payments to the govt since its an income and not an expenditure to the government. The addition or deletion of taxes depends upon whether the method used for caluculation is income method or expenditure method. Since GDP is already given , we would also ignore the taxes. Losses from depreciaion is also included as corporate profits.

The term social insurance contribution is not clear. Given the options,it looks like this has not been taken into account.

The amounts from top down excluding the above:

M=GDP+Retained earnings+Interest paid to hoseholds by govt

M=110+5+5=120

So , the answer will be $120.

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