DEREE COLLEGE
DEPARTMENT OF ECONOMICS
EC 1101 PRINCIPLES OF ECONOMICS II FALL SEMESTER 2002 M-W-F 13:00-13:50
Dr. Andreas Kontoleon Office hours:
Contact: a.kontoleon@ucl.ac.uk Wednesdays 15:00-17:00

Homework for Chapter 7

(Answer Sheet)

1. Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results you obtain with the different methods should be the same.
| | |
|Personal consumption expenditures |$245 |
|Net foreign factor income earned |4 |
|Transfer payments |12 |
|Rents |14 |
|Consumption of fixed capital (depreciation) |27 |
|Social security contributions |20 |
|Interest |13 |
|Proprietors’ income |33 |
|Net exports