2. Explain whether or not, why, and how the following items are included in the calculation

of GDP?

a) Suppose that the appliance store buys a refrigerator from the manufacturer on December 15, 2016

for Tk. 25,000, and that you then buy on August 5, 2017 for Tk. 40,000. What is the contribution to

GDP in fiscal year FY 2017 (July 2016 to June 2017)?

b) Suppose, an investor from Bangladesh made an investment in Japan during the fiscal year FY2017,

will it be counted in Bangladesh's FY2017 GDP measurement?

c) Suppose, both your mother and the servant equally contribute to manage your 5 - years old child

while you and your wife are at office? The servant is hired by following institutional procedure.

Whose contribution will not be a part of the GDP and why?

d) Sand mining is illegal in Brahmaputra river Basin. But, the local (powerful people) elites with the

of dredgers extract sand from the river beds. Per ton sand extraction costs roughly 0.75 taka for those

political elites. Then, the group of elites sell per ton sand to bulkhead (carrier vessels) owners at 1.5

taka. The bulk-head owners then sell per ton sand at 2.5 taka. The wholesaler bears all the uploading

and loading charge. Let's assume, the wholesaler sells 50,000-ton sand per year at 4 taka per ton. Of

total sand, 80% the wholesaler sells to cement companies (where these companies issue an official

payment slip) while rest 20% the wholesaler sells to local people without keeping proper documents.

In the above-case, will any transaction value be included in GDP calculation? (assume all the

transaction has taken place within a fiscal year).

3. Read the case study and answer the followings:

Let's say, in September 2018 the Walton (Bangladesh) have manufactured 100 LED TVs

(manufacturing cost was Taka 10 million) than usually they produce in a year. But they will start

selling these TVs on July 2019. (Fiscal Year is July to June in Bangladesh)

(a) Will the cost be counted in Bangladesh's GDP FY2018-19?

(b) Instead if the company would sell these TVs by June 2019 with a value of Taka 15 million - what

would happen to Bangladesh's GDP FY2018-19?

4. Calculate the GDP by using the value-added approach for the following problem:

(a) Let's say a farmer produced paddy and sold a kg of paddy to the miller at Tk. 25. The miller

converted the paddy into rice and charges the wholesaler Tk. 30 per kg. The wholesaler adds Tk. 3

more before selling it to the retailer while the consumer finally purchased a kg of rice at Tk. 40.

(b) Can you explain double counting problem from the above stated problem in 4 (a)