Suppose that there are only two small countries in the world: Ascot, with a population of...

Suppose that there are only two small countries in the world: Ascot, with a population of 29,400 people, and Delwich, with a population of 21,000 people. Ascot's GDP is equal to $150 million while Delwich's GDP is $210 million. Delwich's GNP has been estimated to be equal to $240 million. The revenue earned by firms that operate in Delwich but are headquartered in Ascot is equal to $60 million.

Given the data above, Ascot's GNP is $___ million. (Enter your response as an integer.)

In Ascot, the per capita GDP is $___. (Enter your response rounded to the nearest dollar.)

In Delwich, the per capita GNP is $___. (Enter your response rounded to the nearest dollar.)

Solutions

Expert Solution

GDP is Gross Domestic Product and it is the value of all goods and services produced within the domestic boundary of a country within a particular year. GNP, on the other hand, is Gross National Product and is the value of all goods and services produced by the residents of a country within a particular year. Now, the goods and services produced by the residents of a country can either be in the same country or in a different country also.

Gross National Product is calculated by:

Gross National Product (GNP) = Gross Domestic Product (GDP) + Net Factor Income from Abroad.

Now, given the data above, Ascot's GNP is = Ascot's GDP + Net Factor Income from Abroad

= $150 million + $60 million

= $210 million.

In Ascot, the per capita GDP is = Ascot's GDP/Total Population of Ascot

= $ 150M/29,400

= $ 150000000 / 29400

= $ 5,102 (rounded to the nearest dollar)

In Delwich, the per capita GNP is = Delwich's GNP/Total Population of Delwich

= $ 240M/ 21,000

= $ 240000000 / 21000

= $ 11,429 (rounded to the nearest dollar)

Rahul Sunny answered 1 year ago

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Suppose that there are only two small countries in the​ world: Ascot, with a population of...

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Suppose that there are only two small countries in the world: Ascot, with a population of...