BONUS EXERCISE

NI/I in GDP counting

1. General motors situated in the PH sells cars to Indian nationals – I

2. Profit of Jollibee IN HONGKONG – NI
3. Mexican telenovela seen in the PH- I (has been imported kaya included)
4. You buy a new copy of economics textbook -I
5. Gov pays out social security benefits- NI(ex of transfer of payment where the gov is not
expecting of any returns
6. Depreciation of plant and equipment- I
7. Earnings of OFW- Ni
8. Spend a weekend cleaning ur apartment- NI(coz theres no monetary value attached to it)
9. Drug dealer sells 500 dollar worth of illegal drugs- NI(undergound economy)
10. You acquire 100 thousand pesos worth of second hand clothes- NI
11. Alaya corporation purchase 1 million shares of stocks from san Miguel corporation- NI (any
stocks and bonds are not included,when were talking about GDP- market value of FINAL
OUTPUT where financial is not involved.

T/F
1. For an economy as a whole, income equals expenditure because the income of the seller
must be equal to expenditure of the buyer? True
2. The production of an apple contributes more on the GDP than the production of goldring
because food is necessary for life itself. False
3. If the lumber yard sells 1 thousand pesos of lumber to a carpenter, and the carpenter uses
the lumber to build the garage, which he sell for 5 thousand pesos. The contribution to GDP
is 6 thousand pesos- FALSE
4. A country with a larger GDP per person is generally has greater living or quality of life than a
a smaller GDP per person. True. The higher the gdp per person the greater. NOTE!
5. If nominal GDP in 1997 exceeds nominal GDP in 1996, real output must have
risen/increased. FALSE
6. Wages is an example of transfer of payment because there is transfer of payment from the
firm to the worker? FALSE
7. Nominal GDP is the production of goods and services valued at base year prices. False (REAL
GDP)
8. Real GDP is larger than nominal GDP because of inflation. FALSE because it is the nominal
greater than real because nominal counts impact of inflation
9. A new car produced in 1996 but was sold in 1997, should be counted in GDP 1997 because it
is the time where it was first sold. – FALSE (the time where it was created)