Data Exercise Student`s

DataExercise

DataExercise

Acountry’s economy status is based and measured on the grossdomestic product-GDP. It is measured by all the goods and servicesproduced over a given time. Frequently, GDP reflects the percentagechange from the previous year. It is a monetary calculation for aspecific quarter.

GNPis the measure of a country’s economic performance and the goodsand services produced within the country and the difference betweenthe services and goods delivered in overseas countries.

Nationalincome is the total net value of all goods and services producedwithin the country over a particular time. It includes the total ofwages, rents, interests, salaries and pension among others.

Personalincome is the compensational payment to an individual’s servicesand investment. Normally, it is the salary, wages and dividendsrealised on a personal level.

Partone

Thereal GDP are values which inflation is put into consideration, thisis different compared to the normal value since the normal values arenot adjusted for inflation or does not put inflation intoconsideration. From that difference the nominal GDP will be greaterthan the real GDP so by comparing each value one will see that ineach quarter the nominal GDP is greater than the real GDP (Sigmund,2015).

Thereport by the BEA suggests that the data about nominal GDP isincomplete and should be reviewed. This data average to around anincrease or decrease of 6% in both directions and the real GDP willalso be affected by an increase or decrease of 6% in either side thisis after inflation is put into consideration according to the thirdparty estimate. According to the data the information or data for themonth of December have not been considered. BEA has made anassumption of an increase in the imports and the decrease in theexports and that there is a decrease in the non- durable inventoriesand increase in retail and wholesale inventories (Sigmund, 2015).

RealGDP is the cost of production of goods and services, the adjustedchanging in prices is estimated to be around 2.2% in the UnitedStates in the fourth quarter compared to the third quarter. The thirdquarter percentage increase is 5% this estimate is according to thebureau of economic analysis. The increase reflects a positivecontribution from the exports and residential fixed assets non-residential constant investment, and the state/local governmentexpenditure and was affected by the negative contributions of thefederal government expenditure and the inventory investment by theprivate sector (Sigmund, 2015). The imports reduce the GDP.

Parttwo

2014

I

II

III

IV

GDP

17044

17328.2

17599.8

17708.7

GNP

17255.0

17541.7

17829.6

17896.2

NI

14733.7

14972.9

15244.9

15330.0

NNP

14556.3

14819.5

15079.2

15122.8

PI

14484.7

14660.5

14811.2

14958.1

Grossnational product is the value of the output produced by nationals ofthe country regardless of where the products are produced while GrossDomestic Product is the is the total value of products of what isproduced within the territorial of the country regardless of who theproducer is. GDP measure only what is produce within the country itdoes not consider import while GNP measures all what is producedinside the country plus the imports or what is produced from othercountries.

GNPis calculated from GDP by adding the imports from other countries.

Nationalincome is the measure of all the final products produced in a countryi.e. goods and services it can be measured by national productapproach, national product expenditure approach and the nationalincome approach.

Nationalincome was higher by (60281.5-52631.7) = 7649.8

Nationalincome can be calculated by adding net compensation receipts toreceivables of property net income add the net taxes received fromthe production and imports of goods and services.

Netnational product makes most of the national income.

&nbspPartthree

Country

GDP

Population

Per Capita GDP

1

2

3

4 = 2/3

&nbspQatar

&nbspLiechtenstein

&nbspMacau

&nbspBermuda

&nbspMonaca

&nbspLuxembourg

&nbspSingapore

&nbspUnited states

Theorder differs since the gross domestic product of a country might behigh but the population may be low this is because some of thiscountries are developing while others are developed countries.

Partfour

Rankingper economic freedom

Overall change

Singapore 89 00

UnitedStates 76.2+7

Luxembourg73.2 -1

Quatar 70.8 -0.4

Macau70.3 -1.0

Liechtenstein —

Bermuda- –

Monaco- –

Singaporeis ranked the highest for the economic freedom there is norelationship between the per capita income and the economic freedomsince the ranking differs. Economic freedom determines the quality oflife and the opportunities available (Koch, 2011). This is thefreedom to choose on how to produce and use the resources and at thesame time respecting others rights economic freedom determines theprosperity of a country in the world and it helps us understand whySingapore is at the top and other countries and not prospering. Theeconomic freedom in a country influences individual life (Koch,2011). A country like Singapore as seen in the table above since itsranked first it shows that people earn higher incomes, there is lesspoverty, low rate of unemployment and the life expectancies are highwith a conducive environment. The quality of life is high accordingto the rank.

References

Bureau of economic analysis. (n.d.). Retrieved March 29, 2015, from bea: http://www.bea.gov/iTable/iTable.cfm?ReqID=9&ampstep=1#reqid=9&ampstep=3&ampisuri=1&amp903=43

Koch, C. (2011). WHAT IS ECONOMIC FREEDOM? Retrieved March 29, 2015, from http://www.economicfreedom.org/about/what-is-economic-freedom/

Sigmund. (2015). Understanding the 4th quarter GDP report. Retrieved March 29, 2015, from http://www.dailykos.com/story/2015/02/02/1361710/-understanding-the-4th-quarter-GDP-report#

WebFinance. (2014). GDP vs. GNP – What’s the Difference? Retrieved March 29, 2015, from Investorwords: http://www.investorwords.com/article/gdp-vs-gnp.html