Question #1

1)What does GDP attempt to measure?

2)Briefly differentiate between nominal and real GDP.Why is real GDP a more accurate measure of economic growth compared to nominal GDP?

3) What are two weaknesses of GDP?

part B

Use the information given and show in a table format how value added method is used to

Calculate GDP.

1.A forester chops down 200 trees and sells them @ N$50 each to the coal factory on a farm. The coal factory processes these trees into coals and sells the coal @ N$20 000 to the coal wholesaler's.The coal wholesaler's goes to the market and sell 500 bags of coal's @N$100 each to pick n Pay. Pick n Pay sells the 500 bags of coal's @ N$150 each to its customers. According to this example, how much value added do the coals contribute to the GDP?

part C

1. Pick a recent news article from a major newspaper that contains content amenable to macro-economic analysis.

2. In the first short paragraph you might outline the main points from the article that you are planning to analyze.You should identify the key managerial issue(s) discussed in the article. Do not summarize the article.

3. Using the tools (including graphs) and terminology learned in this course explain the economics "behind" the article. Most news articles rarely, if ever, mention the terms or models we discuss in class even though economics is often very relevant to the article's subject matter.The article simply describes something that is happening in the world. This is your opportunity to "think like an economist" to show how economic analysis can inform our understanding of the issue discussed in the article.If you can identify and discuss even one or two economic elements in a news story, then you may understand far more about the issue than most other readers, who only read the words as they are written on the page.

4. The length of the analysis should be between 300 (a word count should appear at the end of the analysis). The analysis should be typewritten, although you can neatly hand draw any graphs that you might need for your analysis.You must attach a copy of your news article to your analysis.