ADDING EXERCISES



1.  Use the information in the following table to calculate GDP.

    ____________________________________________________________
                  Market Value of Goods and Services 
                           Produced in 1997
    ____________________________________________________________
    Wheat                                             $3,900,000
    Automobiles                                        6,500,000
    Tires used in production of automobiles              800,000
    Supplemental Security Income                       1,500,000
    Highway system                                     3,250,000
    Residential housing                                8,250,000
    Leisure                                            3,500,000
    Volunteer services                                 1,750,000
    Government purchases of helicopters                2,225,000 
    ____________________________________________________________





2.  Suppose you are given the following information about the
   Zombieland economy:

    ____________________________________________________________
    Item                                                  Amount
    ____________________________________________________________
    Consumption                                           $3,000
    Gross investment                                       1,000
    Capital consumption allowance                            425
    Government purchases                                     800
    Government transfers                                   1,750
    Exports                                                  700
    Imports                                                  320
    Secondhand sales                                         500
                
a.  What is net investment?

b.  What are net exports?

c.  What is GDP?