What is gross domestic income? GDP? b.what is gross provate domestic investment?

Question

What is gross domestic income? GDP? b.what is gross provate domestic investment? c.what is personal income? personal disposable income? Which of the following are production activities that are included in GDP? which are not?(see page 175 - 178.) a.Mr.King performs the service of painting his own house instead of paying someone else to do it. b.Mr.King paints houses for a living. c.Mr.King earns income from parents by taking baby photos in her digital photography studio. d.Mrs.King takes photos of planets and stars as part of her astronomy hobby. e.E*Trade charges fees to process Internet orders for stock trades. f.Mr.Ho spends $10.000 on shares of stock via an internet trade order and pays a $10 brokerage fee. g.Mrs Ho a social security payment. h.Ms.Hernandez makes a $300 payment for an internet-based course on stock trading. e.Mr.Langham sells a used laptop computer to his neighbor.

Explanation / Answer

GDP is an aggregate measure of production equal to the sum of the gross values added of all resident, institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the value of their outputs)

Gross private domestic investment is the measure of physical investment used in computing GDP in the measurement of nations'economic activity. This is an important component of GDP because it provides an indicator of the future productive capacity of the economy. It includes replacement purchases plus net additions to capital assets plus investments in inventories.

personal income refers to an individual's total earnings from wages, investment enterprises, and other ventures. It is the sum of all the incomes actually received by all the individuals or household during a given period. Personal income is that income which is actually received by the individuals or households in a country during the year from all sources.

Disposable income is total personal income minus personal current taxes.[1] In national accounts definitions, personal income minuspersonal current taxes equals disposable personal income.

a.Not Included

b. Included

c.Included

d. Not included

e. Included

f.Included

g .Included

h .Included

i Not Included

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