Question 1 Students would be required to access the National Income Accounts of USA through the...

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Question 1 Students would be required to access the National Income Accounts of USA through the following link:https://www.bea.gov/data/special-topics/integrated-industry-level-production-account-klemsa. Discuss the differences between basic, producers’ and purchasers’ prices? 10 marks b. Use the information in the Production Account of USA in 2008 to calculate:I. Value Added at Producers' Prices and Value Added at Purchasers' Prices. 8 marksII. Use the Industry and Product Data provided for USA in 2008 to construct a Supply Table at Basic Prices and a Use Table at Producers' Prices. 12 marks
Question 2 a. Discuss the differences between the Paache, Laspeyres and Fisher Index. 9 marksb. St. Vincent and the Grenadines is in the process of rebasing the county’s CPI? Discuss the process of rebasing and why this process is necessary. Would this suggest that previous CPI figures cannot be used? 12 marksUsing data provided by St. Vincent and the Grenadines Statistical Office: Social and Economic Accounting (ECON2005) Academic Year 2020/2021, Semester 1 http://stats.gov.vc/stats/?page_id=260 a. Write a short report on the CPI for the last 5 years. 10 marksb. Recalculate the CPI base year to 2012. Show all working and equations used. 6 marks c. Do you think that the CPI is an appropriate measure of St. Vincent and the Grenadines cost of living? Discuss. 8 marks

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Preeta · Accepted Answer

Question 1:
a. Basic price is the price that is being received by the producer in exchange of one unit of a product. This price is devoid of tax and discount but subsidy is included in the price.
Producer’s price is the price which is obtained by adding tax to the basic price and deducting subsidy from it. 
Purchaser price is obtained by adding trade, transport margin and non-deductible VAT to the producer’s price. 
b. value added at producers' prices = Gross output + value added
= 27,716,594 + 6,366.527
= 27,722,960.53
c. Supply table of 2008:
		Industry Description
	Farms
	Forestry, fishing, and related activities
	Oil and gas extraction
	Mining, except oil and gas
	Support activities for mining
	Utilities
	Construction
	Wood products
	Nonmetallic mineral products
	Primary metals
	Fabricated metal products
	Machinery
	Computer and electronic products
	Electrical equipment, appliances, and components
	Motor vehicles, bodies and trailers, and parts
	Other transportation equipment
	Furniture and related products
	Miscellaneous manufacturing
	Food and beverage and tobacco products
	Textile mills and textile product mills
	Apparel and leather and allied products
	Paper products
	Printing and related support activities
	Petroleum and coal products
	Chemical products
	Plastics and rubber products
	Wholesale trade
	Retail trade
	Air transportation
	Rail transportation
	Water transportation
	Truck transportation
	Transit and ground passenger transportation
	Pipeline transportation
	Other transportation and support activities
	Warehousing and storage
	Publishing industries, except internet (includes software)
	Motion picture and sound recording industries
	Broadcasting and telecommunications
	Data processing, internet publishing, and other information services
	Federal Reserve banks, credit intermediation, and related activities
	Securities, commodity contracts, and investments
	Insurance carriers and related activities
	Funds, trusts,

Question 1 Students would be required to access the National Income Accounts of USA through the following...

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